SCO Group Threatens to Sue Linux Users

TECHNOLOGY

SCO Group Inc., which is seeking royalties from IBM Corp. and other companies that use Linux software, threatened to sue firms that have so far ignored its claims.

SCO says it owns the copyright to the Unix operating system and claims that Linux, which IBM backs as an alternative to Microsoft Corp.’s Windows programs, contains code stolen from its software. SCO sent letters to some Unix and Linux users saying they may face legal action for violating its copyright.

The Lindon, Utah-based company also said its fiscal fourth-quarter loss narrowed to $1.57 million, or 12 cents a share, from $2.73 million, or 26 cents, a year earlier. Revenue rose 56.8% to $24.3 million, and the company forecast first-quarter sales of $10 million to $15 million.

Shares of SCO fell $1.07 to $17.73 on Nasdaq.

From Bloomberg News