# Xinuos Loses Appeal in Project Monterey Case Against IBM and Red Hat Xinuos plans to petition for a rehearing despite the appeals court's rejection. - **Source:** [Slashdot](https://brifing.si/source/0f34d58e-1ccd-45a6-ab82-2de4065dc7ad) - **Published:** 2026-08-24 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/7b81999d-f8d8-4827-87ef-abc4f1fd94db ## Prolonged Legal Battle Xinuos filed a lawsuit against IBM and Red Hat, claiming ownership issues related to IBM's contribution of Project Monterey code to Linux 25 years ago. The company argued that IBM breached its license by contributing code it didn't own. However, the US District Court for the Southern District of New York dismissed the case, finding Xinuos's arguments unpersuasive. ## Appeal Court's Decision Xinuos appealed the district court's decision. On August 10th, the United States Court of Appeals for the Second Circuit ruled that the original license terms made it too late to relitigate the matter. The court noted that Xinuos attempted to frame the case as a licensing issue but failed to do so convincingly. ## Final Attempt: Rehearing Petition Xinuos plans to file a petition for a rehearing before the full bench of the appeals court. However, the Second Circuit grants such petitions in less than 0.03% of cases, indicating Xinuos's slim chances of success. This step is typically reserved for cases with significant legal errors or issues. ## Historical Context: SCO vs. IBM Xinuos is one of the legal successors to SCO, which previously sued IBM over Linux-related claims. In 2021, another SCO successor settled with IBM for $14.25 million, a low figure reflecting SCO's failure to produce strong evidence over the years. This historical context adds complexity to Xinuos's current claims. ## Project Monterey's Background Project Monterey was an initiative by IBM 25 years ago to contribute code to Linux. Xinuos alleges that IBM only had a non-exclusive license to use the code, not ownership rights, and thus breached its license by contributing it to Linux. This claim forms the core of Xinuos's lawsuit. ## Legal Challenges Xinuos's case highlights the difficulties of litigating complex licensing disputes, especially those involving open-source projects. Courts often face challenges in ruling in favor of plaintiffs due to issues like statutes of limitations and insufficient evidence, as seen in this case. ## Industry Implications This lawsuit underscores the complexities of ownership and licensing in open-source projects. Cases like this, involving giants like IBM and Red Hat, can set important precedents for other companies in the tech industry, influencing how similar disputes are handled in the future. ## Outlook and Conclusion Xinuos's legal battle is likely nearing its end. The chances of a successful rehearing petition are minimal, suggesting that IBM and Red Hat will emerge victorious from this prolonged dispute. This outcome would reinforce the challenges of pursuing such claims in court after significant time has passed. ## Sources covering this story - https://linux.slashdot.org/story/26/08/24/037241/sco-successor-xinuos-asks-court-to-rehear-its-claims-against-ibmred-hat-over-project-monterey?utm_source=rss1.0mainlinkanon&utm_medium=feed — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._