As part of their ongoing attempt to sue their way to profitability, The Santa Cruz Organization is now claiming that they have found code that has been copied "line by line" from their UnixWare source (acquired from Novell who acquired it from AT&T).
As a hedge, they claim that some of the code was "obfuscated to make it look like it wasn't UnixWare code--but it was". However, they are not releasing any details until the court hearings, fearful that people may actually mount a defense.
The rest of the article has a series of claims and counter-claims from people including lawyers for both sides, and Steve Balmer (of Microsoft) slamming open source projects because of their lax intellectual property attitudes.
Ironically, it is exactly because the code is open that the folks at SCO were able to find whatever it is they think they have found. If they were going after Microsoft, they would have to come up with some cause for getting a subpoena to see the source code.