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SCO Sues AutoZone, DaimlerChrysler Over Linux

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Defending Linux Cynthia L. Webb examines the Utah software firm's struggle to enforce its copyright claims on the Linux open-source operating system.
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"We believe the legal actions we have taken ... will have a similar impact," McBride said.

Over the past year, SCO has sent letters to about 1,500 companies demanding they pay licensing fees of about $700 for each server running Linux or face legal action.

SCO spokesman Blake Stowell said DaimlerChrysler did not respond to a letter regarding its use of Unix. DaimlerChrysler years ago obtained a Unix license, but Stowell said he did not immediately know if it was through SCO or Unix's two previous owners, Novell Inc. or AT&T Corp.

SCO holds the rights to key elements of the 30-year-old Unix operating system from which Linux was inspired, and claims parts of it have been incorporated in Linux. Those claims are disputed by, among others, Novell and IBM Corp. IBM and SCO have traded lawsuits over the matter.

Unlike Unix or Microsoft Corp.'s Windows, Linux is developed by a worldwide community of programmers and is free to copy or download, making it attractive to many corporations.

IBM, Intel Corp. and others have contributed to a legal fund that will help companies running Linux defray the cost of defending themselves against lawsuits.

Also Wednesday, SCO said it lost $2.25 million, or 16 cents a share, in its fiscal first quarter, which ended Jan. 31. It lost $724,000, or 6 cents a share, in the same quarter last year.

Revenue fell 16 percent to $11.4 million from $13.5 million.

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