Retail group: SCO lawsuit unfounded

Chicaho (IL) - The National Retail Federation (NFR) has released a statement blasting SCO’s copyright infringement claims as "unfounded". The group believes that firms using Linux will survive the litigation process initiated by SCO.

In a statement realeased Wednesday, the NFR stopped short of offering support of member companies who are using Linux and who are afraid of getting sued by SCO. However, the group offered a clear guideline, indicating to oppose SCO’s current crusade.

"Based on the information we have seen, the National Retail Federation believes the claims by The SCO Group are without merit. Novell Corporation is the last company that can demonstrate legal ownership of Unix System V," said Dave Hogan, CIO of the NFR. "In my opinion, it is almost as if The SCO Group’s business model is to generate a revenue stream through litigation."

Ellen Tolley, spokeswomen for the NFR said that Hogan’s statement should be viewed as expression of an opinion and not as a recommendation. If member companies of the NFR are unsure about their situation, the group would be available for advice.

Within the last year, SCO has claimed Intellectual Property rights to parts of the Linux operating system. The company last year filed suit against IBM and is asking for $3 billion in damages. After sending about 3000 letters to large corporations with demands to certify contract compliance, SCO filed suit against DaimlerChrysler and AutoZone, claiming that the two companies were breaching a Unix contract between by not providing "certification of compliance".

Last week, DaimlerChrysler asked a judge to dismiss the suit.