sodablue, if you've paid any attention at all to the actual lawsuit, it does not make any claims of copyright infringement. SCO is suing IBM for breach of contract, unfair competition, tortious interference, and misappropriation of trade secrets. The only reason copyright came up is that Novell attempted to intervene by claiming that SCO does not have the right to sue because Novell did not transfer copyrights when it sold Unix to SCO. Novell later discovered that it really did transfer the copyrights; with all the turnover at Novell in the past few years, apparently nobody remembered where the documents were. Maybe Novell needs to get a decent file server.
Because of the ruckus raised by Novell, SCO was forced to make a point of the fact that they do own the copyrights for Unix, but the current lawsuit does not charge IBM with copyright infringement. That's not to say that a future lawsuit would not, so there could indeed be a legitimate issue for Software Images to avoid.
The only reason this is news is that militant Linux users want it to be news. Except for race, religion, etc. reasons, most businesses can refuse service to anyone they please. There is no "human right" to have your CD-ROM duplicated. It doesn't matter whether Software Images' fears are unfounded or not. If they don't want to serve NZOSS, there's no reason they should, and a 500-disc order is no big deal to pass up. At the same time, NZOSS should have simply gone to a different vendor instead of the press.
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