SCO fights Victorian open source claims

By Andrew Colley
25 July 2003 01:30 PM
Tags: osv, ibm, sco, source, open
SCO has rejected claims from Victorian-based open source advocates that its call for commercial users to purchase Unixware licences could be a breach of Australian trade practices laws.

Open source lobby group Open Source Victoria (OSV) has asked the Australian Competition and Consumer Commission (ACCC) to investigate its claim that SCO's call breaches parts of the Trade Practices Act concerned with misleading and deceptive conduct.

SCO public affairs director Blake Stowell has rejected the claims.

The fracas over the license spun-off from a high-profile contractual and copyright dispute between SCO and global technology giant IBM.

SCO filed a US$1 billion lawsuit against IBM in March, alleging it illegally placed portions of code from its software, Unix System V, into the widely-used open source operating system Linux. The code was then made available -- falsely, claims SCO -- to Linux users under the legal aegis of the General Public License

SCO increased legal pressure on IBM in June. It terminated IBM's right to use or distribute a version of Unix it had developed for its AIX server software, and sought an injunction preventing it from using Unix System V.

SCO early this week registered copyrights over Unix System V in the U.S. and began manoeuvering to demand license fees from commercial users of Linux.

However, OSV spokesperson Con Zymaris argues SCO has already forfeited any copyright the company had over the code because it continued Internet-distribution of a version of the Linux kernel containing it under the GPL after its executives had laid their claim against IBM.

The GPL requires software developers that use open source code to jettison any claims to copyright over new products they develop from it in order to retain rights to distribute them.

"[SCO] can't just come back later and say we want to extract license fees...it's just not possible to do so," said Zymaris.

However, Stowell said other portions of the GPL support its right to protect its code. He says that SCO never gave IBM permission to place the code in Linux, rendering the terms of the license void.

However, SCO's Stowell said the company had pulled versions of the Linux kernel at the centre of the dispute from Internet distribution in recent weeks. According to Stowell SCO Chief Executive Officer, Darl McBride, requested the kernel be pulled offline in order to avoid creating perception the company was complicit with breach of its copyright.

Stowell's statement appears to be at odds with those of some Linux users. Open source enthusiasts who contacted ZDNet Australia claimed that SCO is still making the kernel available under the GPL and point to FTP sites within the caldera.com domain (www.caldera.com is an alternative host for SCO's Web-presence however, according to whois.com, the domain is currently available for renewal).

The ACCC said it will be seeking further information about the issue before it makes a statement on the matter.

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Talkback 12 comments

    SCO are economic terrorists. T ...Anonymous -- 25/07/03

    SCO are economic terrorists.

    They are basically saying "we believe certain portions of Linux are stolen from our Unix, so you must pay us money. But we won't tell you what the infringing code is."

    SCO are acting like the Mafia, using standover tactics. They should make public which Linux code is infringing.

    The key issue here is: that SC ...Con Zymaris -- 25/07/03

    The key issue here is:

    that SCO have not proven in any court that they are entitled to claim that any code in Linux was purloined from them illegally. Until they do this, their attempt to extract money from any Linux user, commercial or otherwise, by claiming they own any part of Linux, is a 'misrepresentation of need'. We believe this should be investigated by the ACCC.

    ACCC has looked at similar scenarios in dodgy Doman Name firms sending out letters to unsuspecting businesses asking for money, when these Domain Name firms are not at all entitled to such money from these businesses.

    Look, let's put this in terms that everyone can understand. What SCO have done, in layman's terms, is the equivalent of filing a property title for their own property with the local council, then coming around to every house in the block and asking for rent from each occupant, claiming that somehow, SCO have managed to acquire ownership of each household on the block. SCO say that they have proof that they now own each property on the block, and you will just have to trust them on this. If you don't they'll sue you later on. So, shut up and pay. This tactic is wrong and must be stopped.

    If SCO have proof, let them convince a court.

    Then they also have to convince the court that they didn't really continue distributing all source code in their own Linux distribution, including their claimed and as yet unproven 'suspect' code, under the GPL for months after the proclaimed to the world that this code was an issue.

    They just can't have it both ways.

    FUD. Nothing but FUD. How can ...Anonymous -- 25/07/03

    FUD. Nothing but FUD.

    How can SCO demand license payments for IP whose worth has yet to be determined?
    The theft of the IP hasnt been proven, the case hasnt hit the courts, and yet they demand money.

    If the case were truly serious, then SCO would have just informed the companies, waited until the outcome of the trial, and then made the demands.

    But, as shown, SCO continued to distribute the "stolen" IP under its own GPL'ed Linux flavour. A sure case of "do as i say, not as i do".

    SCO claims that it owns certai ...Anonymous -- 26/07/03

    SCO claims that it owns certain code in linux. Normally when a company claims someone else is using its copyrighted material, it goes to the company and shows it what the material is. That way the company can decide if it really is using code that belongs to someone else, and if so, remove it.

    Instead SCO keeps the code secret, and threatens users it will sue them if they don't buy licenses from it. Sounds like a scam to me.

    SCO, I think you have some of ...Anonymous -- 26/07/03

    SCO, I think you have some of my IP in your unix ware server. If you pay me 1 Billion dollars I will not sue you. Ok everyone do you see just how stupid and wrong this is?. To make a long story short someone needs to put a gag order on these bozo's if they are not going to show hard proof.

    More SCO lies. They are, in f ...Anonymous -- 26/07/03

    More SCO lies. They are, in fact, still distributing the Linux kernel from their ftp server: See for example, this directory which contains a number of kernel SOURCE files for the 2.4 kernel series (which is the one the claim infringes): "ftp.sco.com:/pub/scolinux/server/4.0/updates/SRPMS/".

    Show us the bloody code, SCO! ...Anonymous -- 26/07/03

    Show us the bloody code, SCO!

    SCO will have to demonstrate WHAT CODE to establish the validity if any (doubtful), of their claims. And release under NDA of 80 lines of code with the dates removed does not count.

    Personally, I think it is likely there is common code - but that most of it was copied from GNU projects and/or Linux into Unix SysV.

    SCO shouldn't be allowed trade in Australia

    On SCO and licensing linux: ho ...dan wallace -- 26/07/03

    On SCO and licensing linux: how bilateral contracts and the doctrine of mutual mistake are confused with the GPL (a unilateral contract).
    When Prof. Eben Moglen drafted the GPL it was written as a unilateral (contract) license.

    "[A] unilateral contract results from an exchange of a promise for an act; a bilateral contract results from an exchange of promises." Mark Pettit, Jr., Modern Unilateral Contracts, 63 B.U. L. Rev. 551, 553 (1983). Thus, "in a unilateral contract, there is no bargaining process or exchange of promises by parties as in a bilateral contract." Orr v. Westminster Village North, Inc., 689 N.E.2d 712, 720 n. 11 (Ind. 1997). "[O]nly one party makes an offer (or promise) which invites performance by another, and performance constitutes both acceptance of that offer and consideration." Id. Because "a 'unilateral contract' is one in which no promisor receives promise as consideration for his promise," only one party is bound. Johns v. Thomas H. Vaughn & Co., 34 Ala. App. 99, 101, 38 So. 2d 19, 20 (1948).", cited in Owen v. MBPXL Corporation, 173 F. Supp. 2d 905
    (N.D. Iowa 2001)

    Here we have:
    1) "[O]nly one party makes an offer (or promise)"
    i.e. GPL section (1) "You may copy and distribute ..."
    2) "which invites performance by another,"
    i.e. GPL section (5)"... Therefore by modifying or distributing ..."
    3) "and performance constitutes both acceptance of that offer ...
    i.e. SCO GROUP distributes SCOLINUX

    Unilateral contracts are much more difficult to void than are bilateral contracts.
    "A party to a unilateral contract mistake bears the risk if:
    a) the risk is allocated to him by agreement of the parties, or
    b) he is aware, at the time the contract is made, that he has only limited knowledge with respect to the facts to which the mistake relates but treats his limited knowledge as sufficient."
    -- Restatement (Second) of Contracts.

    It is irrelevent WHO put the code in linux. Limited knowledge but acting as if it is sufficient knowlegde to continue distribution makes the GPL a binding unilateral contract. That's the reason Prof. Moglen has offered to defend free of charge any linux distributors sued by SCO.

    SCO had been seeking facts (limited knowledge) concerning IP violations and linux for 2 months after filing the IBM lawsuit. Yet they continued to distribute linux source code (treating that limited knowledge as sufficient to continue distribution).

    IANAL but I do not think the SCO v GPL debate is as murky as many would have us believe.

    The truth is SCO has already s ...Anonymous -- 26/07/03

    The truth is SCO has already stolen IP from Linux, and now wants to make it apear that is not the case.
    I mean look at this ...
    SCO code is secret.
    Linux code is public.
    SCO Unixware code has sucked for many years.
    Linux has rocked for many years.
    SCO want to improve Unixware by stealing from Linux.
    How can Linux steal something from Unixware, that Unixware does not have yet? (good SMP for one thing)
    Unixware is like a bicycle, etc.......

    Yup, put your code whare your ...Leon Brooks -- 26/07/03

    Yup, put your code whare your mouth is!

    I asked SCO .au what specfic code they claimed I needed to licence and they replied in generalities.

    I answered again and asked for something more specific and pointed out to them (in detail) that there were no circumstances under which concealment is of benefit to them IF THEIR CLAIMS ARE REAL, and could they please be more specific? No reply to that so far.

    Some interesting observations ...Anonymous -- 27/07/03

    Some interesting observations of slant in this article.
    ZDNET - "SCO increased legal pressure on IBM in June. It te"

    Actually, SCO inflated its claims. Legal pressure was actually reduced, since Darl McBride's boastful threats of

    "All AIX will be illegal"
    "After this deadline the AIX world will never be the same."
    "AIX shops better get ready to be audited."

    All proved to be TOTAL HOT AIR as SCO sought no preliminary injuctions, and audits have absolutely failed to materialize.

    ZDNET - SCO early this week registered copyrights over Unix System V in the U.S. and began manoeuvering to demand license fees from commercial users of Linux.

    Why does ZDNET not cast a critical eye on this? SCO's act of registering UNIX copyrights and on the same demanding licensing fees from LINUX reeks of attempted misdirection, leading, misleading, confusion and FUD. Why conflate these two things, why demand Linux licensing fees ON THE SAME DAY, IN THE SAME CONFERENCE that completely unrelated copyrights are registered? Why would SCO conflate the 2 things in one news conference?

    One interesting item is that SCO took great pains to say "end users will not be targeted". SCO is scared. SCO have been caught off guard by the Linux advocacy community (the part of the Linux community known to some journalists as "the wolf pack in penguin's clothing").

    This group has been taking apart SCO's case piece by piece, analyzing all of SCO's actions (i believe no company in history has had so many people reading all of its SEC filings as SCO now has) in minute detail looking for fraud. We may see US SEC and FTC investigations soon.

    ZDNET - However, SCO has pulled Linux kernel from download distribution in recent weeks.

    NO NO NO. As of Sat Jul 26 it's still on SCO's site, available for download. SCO is still a member of United Linux, a group whose purpose is to distribute and promote Linux. Disingenuousness, thy name is SCO.

    ZDNet FUD: "The GPL requi ...Anonymous -- 30/07/03

    ZDNet FUD:

    "The GPL requires software developers that use open source code to jettison any claims to copyright over new products they develop from it in order to retain rights to distribute them."

    Utterly wrong. The GPL says if you modify GPL software and then distribute it, you must publish your modified code and allow people to use your code for free under the GPL. You maintain full copyright over your code. You can include it in any other program you like, under any licence you like, for free or for a fee.

    Anyone who acquires your code under the GPL can use it for free, but they are also bound by the GPL and can't charge for it. Nor can they include your code in their software under any other licence.

    The GPL stipulates that you retain full copyright over your code.

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