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First IBM, now SGI - SCO Strikes Again

SCO claims XFS journaling file system developed by SGI is a breach

Mountain View, California-based, Silicon Graphics International (SGI) has revealed that The SCO Group Inc intends to terminate its Unix System V license. The grounds: that SGI has breached the license terms.

The notice to terminate was revealed in Mountain View, California-based SGI's annual 10-K filing.

The company, the filing states, "recently received a notice from SCO Group stating its intention to terminate our fully paid license to certain Unix-related code, under which we distribute our Irix operating system, on the basis that we have breached the terms of such license."

An SGI spokeman said: "We believe that the SCO Group's allegations are without merit and that our fully paid license is non-terminable. Nonetheless, there can be no assurance that this dispute with SCO Group will not escalate into litigation, which could have a material adverse effect on SGI, or that SCO Group's intellectual property claims will not impair the market acceptance of the Linux operating system."

Last month SGI asserted that its conversion of XFS into an open-source program is permitted. "We believe our release of XFS as open source to Linux was consistent with our Unix contract with SCO," SGI spokeswoman Marty Coleman said.

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