Computer Associates (CA) has acquired Unixware licences as part of a $40m legal settlement, but has angrily denied that the move indicates support for SCO's "strategy of intimidation" towards Linux users.

The licences were actually acquired as part of a settlement last August with The SCO Group's majority shareholder, The Canopy Group, in a dispute dating back to April 2001.

Filings with the Securities and Exchange Commission show that Canopy's action was "based upon a series of written agreements involving the licensing of certain software products" with Canopy et al seeking "monetary damages based upon claims for, among other things, breach of contract".

Sam Greenblatt, senior vice president and chief architect of the Linux technology group at CA, said in a statement: "CA disagrees with SCO's tactics, which are intended to intimidate and threaten customers.

"CA's licence for Linux technology is part of a larger settlement with The Canopy Group. It has nothing to do with SCO's strategy of intimidation."

Phil Carnelly, software research director at analyst Ovum, suggested that SCO could keep up its aggressive litigious policy for another five to 10 years "before the money runs out".

"Venture capitalists recently put an extra $50m into the company," he said. "They are gambling on this strategy coming through and producing a big revenue stream and stock value hike for SCO."