IBM Tries to Calm Customers over SCO threat.

IBM is addressing the concerns of its customers regarding the legal threats posed by The SCO Group Inc., a software company that accuses IBM of incorporating its code into versions of the free Linux operating system.

Lindon, Utah-based SCO has filed a $3 billion lawsuit against IBM, claiming that the computer giant utilized portions of its Unix operating system code to enhance the performance of Linux, an increasingly popular open-source operating system used in corporate computer networks.

Recently, SCO announced plans to offer licenses to companies using the version of Linux distributed by IBM, stating that this would protect IBM customers from potential legal battles (see story).

In an internal memo obtained by Reuters, IBM urged its sales representatives to address customer concerns and provide accurate information, stating that SCO’s demands are based on unsubstantiated threats without factual basis.

According to SCO spokesman Blake Stowell, IBM’s response indicates that they consider the claims to be a viable threat. Stowell also mentioned that many customers have expressed interest in obtaining a license.

IBM, being the world’s largest computer company, has firmly rejected SCO’s claims, asserting that SCO has not demonstrated any violation of its intellectual property rights.

SCO’s Unix-based software is utilized for various corporate functions like accounting and manufacturing systems and is licensed by IBM for use in their version of Unix, known as AIX.

An IBM spokeswoman declined to comment on the matter.

Source: Reuters