Suit Alleges IBM Is Abusing Trade Secrets

IBM Corp., the world’s second-biggest software maker, is misappropriating trade secrets related to the Unix operating system, the company that owns the rights to Unix claims in a lawsuit.

Lindon, Utah-based SCO Group, which purchased the rights to Unix in 1995, is seeking at least $1 billion in damages. The suit, filed Thursday in Utah state court, contends that IBM improperly transferred elements of its AIX version of Unix into Linux software.

IBM has been phasing out its AIX version of Unix in favor of Linux in many of its products. IBM pushes Linux as a low-cost alternative to Microsoft Corp.’s Windows operating system.

Joe Stunkard, a spokesman for Armonk, N.Y.-based IBM, said the company had not yet seen the lawsuit and declined to comment.

IBM shares fell 66 cents to $77.07 on the New York Stock Exchange.