November 20, 2003

SCO's Legal Fees Could Jeopardize Its Software Business

On 18 November 2003, SCO announced that it would pay $1 million and issue shares worth $7.95 million to Boies, Schiller & Flexner. This law firm
represents SCO in its lawsuits against companies using Linux in alleged violation of SCO's intellectual property rights.

Mounting financial pressures have forced SCO to find alternatives to pay Boies, Schiller & Flexner. SCO not only faces the litigation against IBM
(scheduled for April 2005) but must also defend counterclaims by Red Hat and IBM. Moreover, after threatening 1,500 Linux users for infringing its
intellectual property rights, SCO has declared that within 90 days (or by about February 2004) it will start litigation against one or more Fortune
500 companies with large Linux installations.


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