It is not illegal to possess it.
The proper venue for this issue is for SCO to sue distributors of Linux versions - Red Hat, SuSE, Mandrake, etc., and get them to stop.
The fact that they are going after users betrays the fact that this is just a FUD campaign, meant to discourage the use of Linux.
SCO wants to drag this out as long as they can. The last thing they want to do is set foot in a courtroom, where they will be thrown out immediately and their FUD campaign terminated.
I agree. Looking at it from their point of view, suing suing IBM makes sense. Likewise, it would make sense to sue RedHat in U.S. court and SuSE in German court.
When SCO "terminated" IBM's UNIX license, did it only have the authority to prevent IBM from selling more, or do they believe every RS6000 should be shut off?