At the same time, the company has warned Linux users that they may be held liable for their use of the operating system.

The company, which recently launched a $1bn legal action against IBM Corp over alleged anti-trust and intellectual property (IP) violations relating to is ownership of Unix technology, said it may resume sales of Linux in future.

Company vice president and general manager of SCOsource Chris Sontag, speaking to ComputerWire, added SCO has cancelled marketing, business development and financial resources for UnitedLinux, an effort also backed by Conectiva SA, SuSE Linux Corp and Turbolinux Inc.

Sontag said SCO’s withdrawal would be a challenge for UnitedLinux. The UnitedLinux group could not be contacted at time of going to press.

SCO’s decision means the company will now focus entirely on Unix. Sontag claimed Linux contributed to just 1% of SCO’s revenue in the second quarter but said this was not the company’s reason for abandoning Linux.

Sontag also denied SCO is using the legal action to simply exit Linux. Caldera International, the Linux start-up who acquired Unix vendor Santa Cruz Operation, adopted the SCO Group name last year with the appointment of CEO Darl McBride.

McBride also placed the SCO brand and Unix front and center of the re-named company.

Sontag claimed SCO felt it could better protect customers by not selling Linux products while it is also pursuing legal action over use of its Unix IP in Linux. SCO claims unspecified IP from the AT&T-developed Unix, which it now owns, was used in breach of licensing to develop Linux.

Liability may rest with end users. Customers should seek legal counsel to get an opinion, Sontag added. We are so concerned, we suspended our sales and distribution.

SCO has sent letters to around 1,500 of the world’s top corporations informing them of its legal efforts. It said they should seek legal advice if they intend to continue using the operating system.

The company will not say what further steps it is considering against Linux users.

A return to sale of Linux seems unlikely. Sontag said this would depend on whether an appropriate resolution of SCO’s IP is reached. Our focus right now is 100% Unix, Sontag said.

SCO will continue to support existing SCO Linux and Caldera OpenLinux customers, the company said.

Source: Computerwire