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Investors lose faith in SCO's Linux crusade

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SCO Group shares plummeted by nearly 40 per cent to $1.20 on Friday after a judge upheld an earlier ruling throwing out most of the company's legal case against IBM.

SCO claims to own key elements of the intellectual property used in the Unix operating system, and alleges that its code has ended up illegally in Linux distributions.

The company filed a lawsuit against IBM in 2003 in which it alleged that Big Blue illegally contributed SCO source code to Linux.

Friday's stock market beating came after a judge upheld a ruling made in June in which a Utah judge dismissed the vast majority of SCO's legal claims against IBM.

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