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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Xinuos is the successor plaintiff in the dispute that followed SCO’s long-running fight with IBM. It filed a separate lawsuit against IBM and Red Hat in 2021; as of September 30, 2026, its appeal was still unresolved in the available appellate docket. The original SCO case, filed in 2003, had already suffered major setbacks, including a jury finding that Novell owned the UNIX and UnixWare copyrights.
How Xinuos became connected to SCO’s IBM dispute
SCO and IBM’s conflict grew out of Project Monterey, a joint effort to develop a new UNIX operating system. The companies signed a Joint Development Agreement on October 23, 1998; IBM withdrew from the project in May 2001, according to a 2022 opinion from the U.S. District Court for the Southern District of New York.
SCO filed its original lawsuit against IBM on March 6, 2003. IBM’s 2021 Form 10-Q says SCO alleged copyright infringement, unfair competition, interference with contract, and breach of contract involving AIX, Dynix, and Linux.
Xinuos’s connection is through SCO’s assets, not because it was the original plaintiff. The district court described SCO as Xinuos’s predecessor in interest and said that unXis, later known as Xinuos, purchased specified SCO assets, including code at issue in the IBM dispute. Xinuos filed its own action against IBM and Red Hat on March 31, 2021.
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How the original SCO case differs from Xinuos’s lawsuit
| Issue | Original SCO v. IBM | Xinuos v. IBM and Red Hat |
|---|---|---|
| Plaintiff and connection | SCO brought the suit in 2003. Xinuos later acquired specified SCO assets, including code involved in the dispute, according to the 2022 Southern District of New York opinion. | Xinuos, formerly known as unXis, filed a separate suit in 2021. The same opinion describes SCO as its predecessor in interest. |
| Core allegations | SCO alleged copyright infringement, unfair competition, interference with contract, and breach of contract related to AIX, Dynix, and Linux, according to IBM’s 2021 Form 10-Q. | Xinuos’s claims involved alleged use of code and market conduct by IBM and Red Hat. In 2026, Xinuos argued on appeal that the district court had treated its copyright theory as an ownership claim. |
| Procedural position | After Novell prevailed on UNIX and UnixWare copyright ownership, the Utah federal court ruled for IBM on SCO’s remaining claims in February 2016. The Tenth Circuit affirmed all but one remaining claim in October 2017, remanding that claim, according to IBM’s Form 10-Q. | The case reached the Second Circuit in 2025. The available docket and June 22, 2026 report do not establish a final appellate merits decision by September 30, 2026. |
Why the Novell copyright ruling matters
The ownership question complicates any account of SCO’s copyright claims. IBM’s Form 10-Q reports that a jury in a related Novell trial found Novell owned the UNIX and UnixWare copyrights. That finding is a key part of the history behind SCO’s later claims; it should not be confused with a ruling on every allegation in Xinuos’s separate lawsuit.
The legal distinction at issue in Xinuos’s appeal is whether its copyright theory was properly characterized as a claim about who owns copyrights, rather than a claim about infringement. Those theories are not interchangeable: a party’s asserted right to enforce a copyright can depend on ownership, while infringement concerns whether protected material was used without authorization. The June 2026 report described Xinuos’s position on that distinction; it did not report that the appeals court had accepted it.
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What happened in the Xinuos appeal
The Second Circuit docket records that Xinuos opened its appeal on April 28–29, 2025. Tom’s Hardware reported that a three-judge panel heard oral argument on June 22, 2026. Xinuos’s position, as quoted in that report, was that “IBM and Red Hat have abused their control over the Unix/Linux operating system market for far too long.” That is the company’s allegation, not a court finding.
As of September 30, 2026, the available docket did not show a final appellate merits judgment after the hearing. The appeal’s outcome therefore remained unresolved at that date; the hearing itself did not establish that Xinuos had won or that IBM’s liability had been decided.
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