SCO signs up first Linux licensee

The SCO Group has revealed that a first company has licensed Linux - just under a week after the firm issued its Linux intellectual property (IP) licence programme.

According to SCO the unnamed company, which it claims is among the Fortune 500 index of the world's biggest companies, purchased a licence for each of its servers.

"This Fortune 500 company recognises the importance of paying for SCO's IP that is found in Linux and can now run Linux in their environment under a legitimate licence from SCO," said Chris Sontag, SCOsource general manager and senior vice president.

"We anticipate this being the first of many licensees that will properly compensate SCO for our IP."

SCO said that more than 300 other companies had contacted it to enquire about the IP licence in the first four days of the programme being announced.

But Gary Barnett, research director at analyst Ovum, likened SCO's actions to the practice in the Middle Ages of selling indulgences, persuading people to part with cash to buy redemption for their 'sins'.

He pointed out that SCO was offering users protection from prosecution over technology that it might not even own, since this had not yet been tested in court.

"Those considering signing the licence should insist on a money-back guarantee," he said.

"That way, if SCO fails to win the case you haven't sinned at all and SCO can pay you back."