Microsoft's SCO licensing deal 'snubs Linux'

Wednesday, 21 May 2003, 11:11 AM EST

Microsoft's licensing of rights to Unix technology from the SCO Group lends heavyweight backing to SCO's intellectual-property claims and helps Microsoft combat Linux, a growing marketplace threat to its operating system, analysts said.

SCO on Monday said that Microsoft has licensed from it the source code and patents associated with the Unix operating system. The licence ensures that Microsoft's software complies with SCO's intellectual-property rights and that the software giant can ensure compatibility with Unix software, according to a Microsoft representative.

The deal also appears to lend credence to SCO's charges that large parts of Unix source code have been copied into Linux. Microsoft's move may have a snowball effect, causing other companies to also strike licensing pacts with SCO, industry experts said.

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