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SCO Considers Upping 'Linux' Licensing Fee

The SCO Group is considering an increase in the cost of the intellectual-property license it says companies should buy for using the open-source Linux operating system.

InformationWeek Staff

August 10, 2004

1 Min Read

The SCO Group Inc. is considering an increase in the cost of the intellectual-property license it says companies should buy for using the open-source Linux operating system.

Company spokesman Blake Stowell declined comment Tuesday on why the cost of the license should be higher, but said in response to an email query "that it's something that we are considering right now."

The Lindon, Utah, company claims its proprietary Unix code has been illegally included in Linux. The company has filed a multi-billion-dollar lawsuit against IBM for allegedly violating its Unix license by inserting the copyrighted code in Linux. IBM denies the claims, and has counter-sued for patent infringement and other claims.

SCO has also filed Linux-related lawsuits against AutoZone Inc. and Novell Inc., and has said it doesn't plan on filing anymore until it gets court decisions on the pending cases.

Under the SCOsource initiative, SCO offers two types of IP licenses. One gives permanent indemnity to Linux users, and the other is sold on an annual basis for between 20 percent and 40 percent of the full version.

SCO has forecast that revenue from SCOsource licensing would be in the "six-figure range" in the third quarter.

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