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Linux litigation puts SCO in red

Antony Savvas

SCO’s continued legal action against distributors of Linux has plunged it into the red for the third quarter to 31 July.

In addition to plunging sales - $9.3m (£5.4m) from $11.2m for the same quarter last year – the software provider was saddled with a $3.1m legal bill during the quarter.

This led to SCO making a $2.4m loss for the quarter, although SCO says it still has plenty of cash to finance its Linux litigation against the likes of IBM and Novell.

SCO claims elements of its Unix code were wrongly used in the development of Linux, and is going after companies that sell Linux products, as well as major Linux users.

IBM and Novell dispute any infringements to SCO’s patents.


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