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
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?