June 14, 2004 — (WEB HOST INDUSTRY REVIEW) — According to reports, the SCO Group (sco.com) said last week that its SCOsource division, a unit formed to protect the company’s intellectual copyrights, suffered a drastic 99 percent drop in Unix licensing revenue for the second quarter of 2004 compared to the same period last year.
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Established in January 2003, SCOsource generates revenue by collecting licensing fees from companies who run Linux. The company claims that code in the Linux kernel violates its intellectual copyrights, and has filed suit against Linux vendors such as IBM (ibm.com) and Novell (novell.com), demanding licensing fees, and has also targeted individual companies. In March, Web hosting provider EVServers (ev1servers.net) agreed to pay licensing fees to SCO.
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In the past month, SCO has worked to pare down its expenses, laying off 275 workers across several divisions in the company.
