I don't know if development will necessarily be stifled too much (though I can see how it might be). Though linux has developed without much market share for a long time, and I don't see that stopping anytime soon. I do see linux adoption being impacted by this though. However, if Linux does hold up as a good alternative to Win in the office, then once this SCO thing gets straightened out, companies can again move to linux without legal worries, it'll just depend on how funds are distributed among IBM, SCO, etc.
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