An anonymous reader writes "Blake Stowell, SCO's director of communications, acknowledged that the leaked memo is real." However, Stowell went on to say that the memo was misunderstood, and that Microsoft has not been funding SCO, as was previously alleged. In addition, Computer Associates is now vehemently denying they ever licensed Linux from SCO. AlabamaMike writes "Being employed by Computer Associates myself, I had to admit I was terribly dismayed by the news that the company I work for had licensed SCO's dubious Linux IP. I sent some mail around to those I thought would have some info about what was going on with this very odd move, and the response that came back truly should be posted for the /. community. Basically this is a very creative spin on a settlement CA did with Canopy Group regarding a breach of contract settlement totally unrelated to Linux. Associated with that settlement was a set of UnixWare licenses to which SCO has taken the liberty of attaching these 'Linux IP' licenses."