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SCO vs IBM
SCO vs IBM

In March, SCO accused IBM to have violated the agreements on Unix to benefit Linux and the OpenSource community. SCO seeks $3 billion in damages from IBM: $1 billion in damages from IBM's alleged breach of its contract with SCO; another $1 billion for breach of the Unix contract signed by Sequent, which IBM acquired in 1999; and another $1 billion for unfair competition. SCO also seeks more for misappropriation of trade secrets and punitive damages.

SCO said that IBM tried to destroy the economic value of UNIX, benefiting Linux. Until now, nobody thought that SCO could take the cause ahead against IBM because SCO had not enough economic funds; but just few days ago SCO announced a $50 million investment by BayStar Capital and the SCO spokesman said: "For anyone out there that was doubting we had the necessary funds to fund that litigation, they should rest easy now."

The company had $11 million in cash on July 31 but now will have about $61 million, SCO said.

Baystar Capital justified its investment with this words: "BayStar Capital looks to invest in growth-oriented firms with strong management, substantial market opportunity and solid, comprehensive business plans, and we believe that all of those fundamentals are in place for SCO to succeed".

SCO vs IBM: how will it finish?