For the past few months, programmers and open-source software supporters, such as Red Hat Inc., which is a leading distributor of Linux, have disputed claims made by SCO Group Inc. (SCO) that its proprietary code was unlawfully copied into the Linux operating system. The dispute arises from SCO's filing of a $3 billion lawsuit against IBM, in which SCO claims that IBM illegally incorporated into its Linux software source code from the Unix operating system that SCO controls and SCO's sending of letters to 1,500 IT mangers warning them that any use of Linux could expose them to legal claims.
As a response to SCO's actions, on August 4, 2003, Red Hat Inc. initiated a lawsuit that asks a court to decide if any of its software infringes SCO's intellectual property rights. The lawsuit also seeks an order barring SCO from making "unfair, untrue and deceptive" claims. Since the filing of the lawsuit, SCO has announced steep licensing rates for Linux users based on its IP claims to the Linux code.
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