Linux dispute keeps escalating, David Boies to represent SCO
thestreet.com | at | by Mike
SCO Group is playing hard ball to assert its right to profit on the Linux operating system. On Tuesday, Lindon, Utah-based SCO even threatened to sue a Linux user to make its case. It may be an idle threat, but ever since SCO sued IBM in March for allegedly misappropriating SCO's Unix code for Big Blue's Linux business, the company's stock has tripled and was up some 3% on Tuesday. Judging by that climb, investors seem to think SCO's lawsuit has a fighting chance against Big Blue.
High-profile attorney David Boies has agreed to represent SCO, but legal eagles say it's too early to handicap the case.
One analyst whose hedge fund bought shares of SCO sees things differently. "I think there is a lot of meat on the bone here, so to speak, in terms of there being a strong case," says the analyst, who requested anonymity. Among the reasons he cites:
But in the long term, SCO's actions have the potential to dampen Linux's growth until the issue is resolved, Soundview analyst Victor Raisys said in a research note Tuesday. Trial in the IBM case is set for April 11, 2005.