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Steve Ballmer believes that people who use Red Hat Linux have an obligation to compensate Microsoft He has warned users of Red Hat Linux that they will have to pay Microsoft for its intellectual property. SCO tried and failed badly to prove that it owns the intellectual property to Linux. They are facing bankruptcy.

Microsoft's threatening IP action without any details

I also don't know which intellectual property (IP) is Microsoft saying open source solutions are infringing on. They have denied giving out this information to the rest of us. Red Hat has repeatedly stated that it will not engage in a patent licensing deal similar to the Novell-Microsoft partnership, referring to its as an 'innovation tax'. Microsoft inked a partnership with Novell last year in which Novell agreed to license Microsoft's intellectual property in exchange for a patent pledge to users of Novell's SuSE Linux.

On May 12, 2003 Sco attacked Linux and other companies. Now U.S. District Court Judge Dale Kimball has ruled that Novell owns Unix's IP (intellectual property) rights i.e SCO has no rights to use Unix’s IP and Unixware software.

This ruling is good news for organizations and end users like you and me who use Linux and open-source software products everyday.

It was all started when SCO filed a suit against IBM claiming that it had violated SCO's rights by contributing Unix code to Linux kernel. Now SCO's threat to the Linux community is over.

Novell Wins Ruling Against SCO In High-Profile Linux Case:

The court's ruling has cut out the core of SCO's case and, as a result, eliminates SCO's threat to the Linux community based upon allegations of copyright infringement of UNIX," Novell said in a statement. "We are extremely pleased with the outcome.