SCO suit dampens Centrelink open source aspirations

SCO's legal assault on Linux is delaying a major open source evaluation project being undertaken by Centrelink. The move is believed to be the first concession by a user in Australia that the vendor's activities are hampering its takeup of open source software.

According to Helen Austin, Centrelink national manager for enterprise architecture, SCO's legal activities may delay the organisation's investigation into open source software expected to run over the next five years. Austin said the government was now investing more time in the evaluation phase of the project to protect the government against any negative legal impacts from court actions involving Linux.

Austin told delegates attending Open Source Forum 2004 in Sydney yesterday that "[Centrelink] can't afford the distraction of litigation".

"Even if we were happily convinced that everything we did was the right thing its still an exhausting process to prove that in a court of law and its that reluctance that makes us say: 'we don't want to leave the pack here; we want to check what happens in other people's situations so that we can defend ourselves in advance, prevention being better than cure," Austin later told ZDNet Australia   in an interview.

As well as protecting the specific interests of Centrelink, Austin said the federal government was now making sure that government contracts with "third parties" were "watertight".

Delegates were told that Centrelink was working closely with National Office for the Information Economy (NOIE) and the Attorney General on the matter.

Centrelink has engaged in little public discussion about the investigation project - not be confused with its five-year, AU$300 million dollar IT refresh program -- to date, aside from revealing that it aims to establish the organisation as an "active user of open source and open standards".

Privately, sources say that Centrelink is investigating the possibility of rolling out a uniform Linux operating system across the organisation's mid-range and IBM mainframe server hardware, which serves an estimated 27,000 users.

SCO's assault arose from its vigorously-debated claim to intellectual property contained in the popular non-proprietary operating system.

The company launched in March 2003 legal action seeking damages from IBM on the basis of allegations it illegally incorporated code from a variant of Unix SCO claims to own into Linux. It initially sought US$1 billion in damages and later escalated the claim to US$3 billion.

SCO was met with avalanche of protests from the Linux community, which widely viewed the litigation as an attack on the open source software. The fracas over the software escalated in July, after SCO began demanding license fees from commercial users of Linux in jurisdictions it calculated would favour its claim.

ZDNet Australia today approached Centrelink for further comment on how its project was positioned legally as a result of SCO's assault, but it was unable to respond in time for publication.

Talkback 9 comments

    The License that SCO is litiga ...Anonymous -- 27/03/04

    The License that SCO is litigating people into signing could be seen as nothing more than an “Interim Assurance policy”. If SCO looses the IBM case (and/or any other cases) the licensee has no recourse for a refund. I believe this a bad license to agree with even if SCO wins.

    How can a “Linux” user be litigated into signing a contract that does not allow for any recourse should SCO fail to prove that it’s IP and/or code is in Linux (Or in other words loose the IBM and Novel cases)? (EG: In simple terms: I sue you in Australia for steeling my car, you pay a settlement out of court before I can prove in a court in the USA that it is my car. Even if I am the car owner there should be a sequence of events. Proof that the car is mine and from there seek a solution.)

    Also… SCO has stated that the lawsuit was filed because it had the “AIX” and “Linux” code compared and analyzed by 3 separate teams; these teams found that there was SCO IP (AIX derived code) in Linux. However in court SCO has asked for the AIX code so that these comparisons can be done. IBM has not and will not file contempt (Or Perjury) charges against SCO as they want to win this case on its merits and not on a technicality.

    This is why there is a lot of “Disappointment” with SCO in the Linux Community. Not just because Linux advocates believe (very strongly) that there is no SCO IP in Linux but the process of how they are going about a resolution to this issue.

    In sight of all this; a logical sequence of events should be sought:
    1) SCO should prove it’s case, (If it can), this is disputed strongly by IBM, Novell, Redhat and Linus Torvoldes (The original creator of Linux)
    2) This should be verified independently by a court appointed team of experts.
    3) Then and then and only then should End Users be asked to remedy the situation, not before.

    There are other rumours and highly disputed facts surrounding the case, but I want to calmly dispute SCO’s “COURSE OF ACTION” not its stance.

    Indemnification can be sought/investigated by “Centerlink” from Hewlett Packard, Redhat or Novell. Centerlink, nor anyone else, should be punished for asking to delay proceedings until the outcome SCO vs. IBM, and the SCO vs. Novell cases. In fact this course will benefit SCO if it wins. (Short term SCO has a cash flow issue at the moment)

    For more information, please visit www.groklaw.net, www.novell.com and www.redhat.com or speak to their Australian offices about this.

    Centerlink, simply keep a calm and level head, seek advice from all corners and take the best option that suits them for both long and short term. From my perspective, I believe this would be a rational approach to this unique situation.

    Errors and Omissions are not intended.
    IANAL (I am not a Lawyer)

    I didn't realise that I stated ...Anonymous -- 27/03/04

    I didn't realise that I stated incorrectly in my above post that Groklaw has an Australian Office, alas it does not. I'm fairly sure Novell and Redhat have an Australian office but I'm not certain on this. If someone could respond to this comment for the assistance of others... Thanks in advance :)

    This would be an ideal opportu ...Anonymous -- 27/03/04

    This would be an ideal opportunity for CentreLink to investigate other open source alternatives to Linux. FreeBSD is the obvious choice given its maturity and the lack of hype surrounding it.

    Is closed source software safe ...Anonymous -- 27/03/04

    Is closed source software safe? Fact is, you are far more likely to be sued for using closed source software than you are for using open source. Unlike open source software, where you and any court can inspect the code in question, closed source software is kept in secrecy by, often times unaccountable foreign corporations. God help the government if it is discovered that Windows infringes on some intellectual property and the US government insists that Microsoft can NOT be punished.

    Re:"Is closed source soft ...Anonymous -- 27/03/04

    Re:"Is closed source software safe?
    Fact is, you are far more likely to be sued for using closed source software than you are for using open source."

    What absolute unsupported nonsense. To start with you are confusing open/closed with proprietry/non-proprietry software. A company may licence its software offerings in ways that give the software features from both sets. An obvious example is MicroSoft who offer closed source proprietry software. Freeware for the Windows platform is typically not offered with source code. Sun MicroSystems offer licencing that makes some of their software open source but still proprietry. The licencing for various *BSD OS distributions makes them open source and non proprietry.

    In the end, legal problems regarding software are far more likely to be the result of licencing violations. Two obvious examples are software piracy and intellectual property theft.

    "Unlike open source software, where you and any court can inspect the code in question, closed source software is kept in secrecy by, often times unaccountable foreign corporations."

    Another misrepresentation. Courts have a right to view evidence in a dispute.
    Take for example a company that licences source code to company-B so that B can develop products to interoperate fully with Company A's offerings.
    Company-A then discovers that features of their product appear in new and now competing products from B. In this case the theft of intellectual property can be proven by comparing the source code from both companies.

    "God help the government if it is discovered that Windows infringes on some intellectual property and the US government insists that Microsoft can NOT be punished."

    Centrelink took a reasonable step in suspending its deployment of Linux based systems given the current uncertainties surrounding Linux. Perhaps its time they had a look at some of the alternatives to Linix - there are lots of them and they're just as free.

    FreeBSD doesn't run on mainfra ...Anonymous -- 29/03/04

    FreeBSD doesn't run on mainframes guys. So all this talk of alternatives is sheer nonsense.

    Centrelink will proceed with deployment. IBM has too much vested in this to let SCO scare clients away. Count on this.

    And yes, proprietary software offers no warranty and indemnity advantages over Linux et al. See the following:

    "The concept of support and liability for Windows products comes under question
    as Microsoft limit their liability to US$5 for a broken "fix":
    http://www.theinquirer.net/?article=15001

    "...all this talk of alte ...Anonymous -- 29/03/04

    "...all this talk of alternatives is sheer nonsense."

    The point of using an 'open source' solution is to avoid being locked into a particular software offering and to promote competition. i.e. provide alternatives and reduce cost.

    Centrelinks relationship with IBM was extablished in 2002. In that time IBM has helped modify Linux into something useful to Centrelink. IBM is certainly able to apply the lessons learned and the IP developed to other open source projects. IBM is quite capable of supporting something other than Linux on their mainframe hardware wherever a customer is unwilling to risk exposure to problems related to SCO licencing or wherever a customer simply chooses not to use Linux.

    "Centrelink will proceed with deployment. IBM has too much vested in this to let SCO scare clients away. Count on this."

    By choosing an open source solution and behaving pragmatically this Australian organisation has demonstrated that it has some common sense and is not beholden to IBM nor any other vendor. For IBM to insist that Linux is the only solution makes IBM nothing more than purveyors of proprietry software intent on locking their clients to a particular platform.

    To anonymous FreeBSD user. Du ...Anonymous -- 30/03/04

    To anonymous FreeBSD user.

    Due to its licence, FreeBSD cannot become an enterprise platform from the vendor's perspective. They all fear heavy proprietisation and forking of any non-GPL codebase.

    The only OS that can fly to where the Open Source world wants it to fly is Linux, FreeBSD is now 5+ years behind in terms of enterprise readiness. Please keep up with the times and avoid this whole OS pissing contest thing.

    Remember, we're not talking single-CPU internet servers anymore. FreeBSD cannot scale to 64 CPUs nor does it have the hardware support necessary to breach the enterprise space.
    .

    Socrates, you're a bit off the ...Anonymous -- 31/03/04

    Socrates, you're a bit off the mark. First, the issue is running Linux on AS400's. This requires a virtual engine for OS400. Linux will not run by itself on the AS400.

    Nor will any conventional version of Linux scale past 8 processors. SGI's highly customized version will scale to 12, not 64. To get to 64 you have to cluster. (And that requires proprietary SGI software)

    You say that FreeBSD is 5+ years behind. How did you calculate that? I'd also like to know how you determined that "Open Source" want's to fly anywhere.

    As far as the Berkeley license vs the GPL, it hasn't seemed to impede the deployment of ISC-BIND. IBM choose Linux because it was a buzz word, not because of the GPL. It was, and still is, a good business decision.

    Since many enterprises use FreeBSD, it think it's safe to say the FreeBSD is indeed "Enterprise Ready". I am at a lose as to what hardware support is required for this distinction.

    Centrelink is looking for a way to maximize it's investment in legacy IBM hardware. To do this, they will need to use Linux, as that was the direction that IBM choose for the OS400 VM. I wish Centrelink the best of luck, and I'm convinced they are making a wise choice.

    I also think it is wise to fully evaluate the effect of the SCO intellectual property claims. While I'm sure that SCO is blowing smoke, there are many wise attorneys that seem to think otherwise, and I am not a lawyer.

    It may well be that FreeBSD can provide a legally safe alternative in many situations, if not this one in particular.

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