Unix/Linux Dispute Broadens — Red Hat Files Suit Against SCO

August 5, 2003 Advisory

On June 17, 2003, we issued an alert outlining developments in the litigation between International Business Machines Corporation ("IBM") and Caldera International, Inc., a company that also does business through the entity The SCO Group, Inc. ("SCO"). On July 23, 2003 we followed up summarizing the offer of so-called remedial measures made by SCO to Linux end users. Our advice on July 23, 2003, was to reject any such offer until at least a preliminary ruling had been issued validating one or more of SCO's still unsubstantiated claims. On the afternoon of August 4, 2003, Red Hat, Inc. ("Red Hat"), announced that it had filed a seven count complaint seeking declaratory and preliminary injunctive relief from the vague allegations made by SCO against Red Hat and licensees of its version of the open source computer operating system known as Linux.