The United States Court of Appeals for the Second Circuit rejected Xinuos' claims against IBM and Red Hat. Xinuos had alleged that IBM and Red Hat improperly contributed jointly-developed Project Monterey UNIX code to Linux. This ruling effectively concludes a legal battle that has spanned decades.
The dispute originated from Project Monterey in 1998, a collaboration between IBM, Santa Cruz Operation (SCO), Intel, and Sequent to build a unified UNIX. As Linux gained prominence, IBM shifted its focus. SCO first complained in the early 2000s that IBM contributed UNIX code to Linux without proper rights, leading to litigation.
In 2003, SCO sued IBM for billions over unauthorized use of UNIX code. Xinuos acquired SCO's UNIX business and IP in 2011. In 2021, Xinuos sued IBM and Red Hat, claiming IBM breached its non-exclusive license by contributing Monterey code to Linux.
The U.S. District Court (SDNY) rejected Xinuos' claims in 2022-2025. The Court of Appeals upheld this dismissal, stating the case was too old to relitigate and that Xinuos' argument, framed as licensing, was fundamentally about ownership, which is time-barred. Xinuos has announced its intention to petition for a full-bench rehearing, though IBM's legal representatives indicate a 0.03% chance of such a hearing being granted.
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The U.S. Court of Appeals for the Second Circuit rejected Xinuos' claims that IBM and Red Hat improperly contributed Project Monterey UNIX code to Linux. This decision effectively ends a decades-long legal dispute over Linux code ownership, despite Xinuos' intent to seek a rehearing.