Unix users warned on SCO legal action

The SCO lawsuit against IBM for Unix copyright infringement "is not going away", industry experts have warned.

Enterprise Unix customers must immediately review their software licence indemnity clauses to see whether they are at risk, according to an advisory issued by analysts the Yankee Group.

"Corporations should take nothing for granted. Review the indemnity clauses in all software contracts, particularly IBM's," the analyst said.

"Contact IBM or the reseller directly to determine whether you are covered and to what extent."

The Yankee Group went on to warn that many software vendors have a cap on liability coverage and urged IBM Linux licensees to contact SCO.

"It doesn't cost anything to have the conversation and determine the cost of their binary Linux licence offering," the advisory said.

"Only after a company reviews its existing contracts, and then speaks to IBM and SCO, will it be in a position to make an informed decision as to whether or not it should negotiate a licence deal with SCO or stand firm and do nothing."

The Yankee Group also slammed IBM for keeping its Unix customers in the dark about the full implications of the lawsuit.

"IBM should share its position on indemnifying customers. Merely saying that it will support customers is not acceptable," the analyst said.

"Telling enterprise accounts not to worry only gives them a false sense of security. IBM must provide specifics as to whether, or to what extent, it will protect customers from SCO suit liability and any other future litigation."

According to the Yankee Group, the fear uncertainty and doubt surrounding SCO's legal action creates opportunities for IBM's competitors.

"IBM rivals Hewlett Packard, Microsoft, Oracle, and Sun Microsystems can and should use this opportunity to demonstrate to their own client bases the effective cost savings their products deliver while the cloud of uncertainty hangs over IBM's Linux offerings," the analyst advised.

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