Letter To Linux Customers
May 12, 2003
Dear commercial Linux user:
SCO holds the rights to the UNIX operating system software originally
licensed by AT&T to approximately 6,000 companies and institutions
worldwide (the “UNIX Licenses”). The vast majority of UNIX
software used in enterprise applications today is a derivative work of
the software originally distributed under our UNIX Licenses. Like you,
we have an obligation to our shareholders to protect our intellectual property
and other valuable rights.
In recent years, a UNIX-like operating system has emerged and has been
distributed in the enterprise marketplace by various software vendors.
This system is called Linux. We believe that Linux is, in material part,
an unauthorized derivative of UNIX.
As you may know, the development process for Linux has differed substantially
from the development process for other enterprise operating systems. Commercial
software is built by carefully selected and screened teams of programmers
working to build proprietary, secure software. This process is designed
to monitor the security and ownership of intellectual property rights associated
with the code.
By contrast, much of Linux has been built from contributions by numerous
unrelated and unknown software developers, each contributing a small section
of code. There is no mechanism inherent in the Linux development process
to assure that intellectual property rights, confidentiality or security
are protected. The Linux process does not prevent inclusion of code that
has been stolen outright, or developed by improper use of proprietary methods
Many Linux contributors were originally UNIX developers who had access
to UNIX source code distributed by AT&T and were subject to confidentiality
agreements, including confidentiality of the methods and concepts involved
in software design. We have evidence that portions of UNIX System V software
code have been copied into Linux and that additional other portions of
UNIX System V software code have been modified and copied into Linux, seemingly
for the purposes of obfuscating their original source.
As a consequence of Linux’s unrestricted authoring process, it is
not surprising that Linux distributors do not warrant the legal integrity
of the Linux code provided to customers. Therefore legal liability that
may arise from the Linux development process may also rest with the end
We believe that Linux infringes on our UNIX intellectual property and
other rights. We intend to aggressively protect and enforce these rights.
Consistent with this effort, on March 7, we initiated legal action against
IBM for alleged unfair competition and breach of contract with respect
to our UNIX rights. This case is pending in Utah Federal District Court.
As you are aware, this case has been widely reported and commented upon
in the press. If you would like additional information, a copy of the complaint
and response may be viewed at our web site at www.sco.com/scosource.
For the reasons explained above, we have also announced the suspension
of our own Linux-related activities until the issues surrounding Linux
intellectual property and the attendant risks are better understood and
Similar to analogous efforts underway in the music industry, we are prepared
to take all actions necessary to stop the ongoing violation of our intellectual
property or other rights.
SCO’s actions may prove unpopular with those who wish to advance
or otherwise benefit from Linux as a free software system for use in enterprise
applications. However, our property and contract rights are important and
valuable; not only to us, but to every individual and every company whose
livelihood depends on the continued viability of intellectual and intangible
property rights in a digital age.
THE SCO GROUP
President and CEO