Time to ignore SCO?

Fran Foo

20 August 2003 11:20 AM

Tags: rosen, linux, unix, sco, fran foo

COMMENTARY--Linux users make good target practise.

This seems to be the thinking at the SCO Group judging from proceedings at its partner and customer conference in Las Vegas on Monday.

SCO executives told delegates that "all the (legal) liabilities rested with the user and not Linux vendors."

The company is embroiled in a US$3 billion lawsuit against IBM, claiming Big Blue inserted unauthorised code from SCO's Unix into Linux. SCO has also moved to issue a licensing structure for the commercial use of Linux.

At the event, SCO officials fleetingly displayed the "illegal code" but refused to allow closer access before a nondisclosure agreement was signed.

For those who abhor the idea of submitting to SCO's demands, you'll be happy to hear that IT law expert Lawrence Rosen has given the green light for Linux users to continue using the operating system...even if the courts rule in favour of SCO.

In a Q&A document, the general counsel for the Open Source Initiative asserts that if IBM hasn't paid SCO a single cent, Linux users shouldn't reach for their chequebooks either.

Rosen's paper is designed to help users assess whether they need to purchase a licence to use Linux. He answers two of the most frequently asked questions in the IT circuit today:

1) Can SCO demand licence fees for Linux?
Sure. But just because someone demands money doesn't mean you should pay them.

SCO has sued only IBM, remember, not you, and is demanding at least US$1 billion in economic damages. IBM didn't reach for its chequebook yet. Why should you?

SCO already licensed Linux to you royalty-free when it distributed Linux under the GPL (General Public License ) licence. Although SCO purported to suspend its Linux distribution after the commencement of this lawsuit, SCO continued to make Linux code available for download from its Web site. By distributing Linux products under the GPL, SCO agreed, among other things, not to assert certain proprietary rights--such as the rights to collect licence fees--over any source code distributed under the terms of the GPL.

Some people complain about the absence of indemnity in open source licenses, including the GPL license used currently for Linux. The economic equation is simple: because the software is given away for free, no open source licensor can afford to offer indemnity.

I don't believe indemnity matters anyway in this case, because of the way SCO has structured its complaint. Assume, for example, that SCO wins its case against IBM and IBM pays US$1 billion in damages to compensate for the use of SCO's confidential code in Linux. (Again, this is a worst case scenario helpful only to assess risk to Linux users.) How then could SCO turn to Linux users and ask for the same damages all over again. That double-dipping isn't fair in law or in equity. Courts usually don't allow that.

Simply by being an interested and aggressive defendant with deep pockets, IBM is now effectively shielding Linux users from damages, even without an indemnity provision in the GPL.

2) Does SCO have a copyright on Linux?
Perhaps.

SCO can register a copyright in any software it wrote or modified or that it distributed as a collective work. So can Linus Torvalds, and Red Hat, and SuSE, and Debian, and so can anyone (including IBM) who contributed more than a trivial bit of code to Linux.

Any of those people or organisations in the US can send US$30, and a form, and 50 pages of their source code to the Library of Congress and get a certificate of copyright registration suitable for framing. The procedures are described at http://www.loc.gov/copyright. There are similar procedures in other countries.

Registering a copyright is only a ticket to get to court. Registration itself isn't proof of anything important.

Of course, registration doesn't give SCO ownership rights to the original versions of the software it modified or re-distributed. Nor does SCO have any copyright ownership in software that is independently written by others, even if that software is based on ideas learned from SCO.

Do you think Rosen's points are valid? Read the entire document at http://www.osdl.org/docs/qa_re_sco_vs_ibm.pdf and share your thoughts below.

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Talkback 11 comments

  1. -Yes. Anonymous -- 20/08/03

    -Yes.

  2. Thank God I still use RedHat 6.2 with the 2.2.25 kernel on my development server... Been seriously considering FreeBSD just to remove myself from this obnoxious circus of events. Anonymous -- 20/08/03

    Thank God I still use RedHat 6.2 with the 2.2.25 kernel on my development server...

    Been seriously considering FreeBSD just to remove myself from this obnoxious circus of events.

  3. Don't just ignore - Complain : INVOICE FRAUD Almost every new release of information from the SCO Group about the case against Linux Users is proving to be bogus. If you get an invoice from SCO, record the details and pass it on the the relevan Anonymous -- 20/08/03

    Don't just ignore - Complain : INVOICE FRAUD

    Almost every new release of information from the SCO Group about the case against Linux Users is proving to be bogus. If you get an invoice from SCO, record the details and pass it on the the relevant authorities.

    http://www.fairtrading.act.gov.au/New%20Web%20Site/invoice.htm

    http://www.zdnet.com.au/newstech/os/story/0,2000048630,20277173,00.htm

  4. SCO has earned its dubious "most despised software company" honors, and destroyed its ability to earn money the old-fashioned way, by torching every last vestige of good will it ever had. SCO is now riding the tiger, and the only question left Dave Oshel -- 20/08/03

    SCO has earned its dubious "most despised software company" honors, and destroyed its ability to earn money the old-fashioned way, by torching every last vestige of good will it ever had. SCO is now riding the tiger, and the only question left is when they will decide to get off it and become lunch.

  5. Some of the "stolen code" that SCO displayed at the forum was photographed and posted on several sites. Within an hour or so the source code was discovered to have been PUBLIC DOMAIN for many years, before Linux even existed. On top of that, SCO Anonymous -- 20/08/03

    Some of the "stolen code" that SCO displayed at the forum was photographed and posted on several sites. Within an hour or so the source code was discovered to have been PUBLIC DOMAIN for many years, before Linux even existed. On top of that, SCO, back when it was named Caldera, had themselves re-released the code under the BSD license, which is essentially also public domain.

    They could not have owned those lines code to begin with. To reenforce that they didn't own it, they even gave it up once more. We can't be sure about the other million lines they claim were stolen, but you have to wonder, if they have factual evidence, who don't they share a single line of it with their own investors & customers in a private meeting? Why feed them something provably false?

  6. SCO just staked their case through the heart. What a lot of us have been saying since the beginning of this farce has been proven by SCO themselves: the common code is BSD-licensed (not "public domain") code that's long been freely redistributab Peter da Silva -- 21/08/03

    SCO just staked their case through the heart. What a lot of us have been saying since the beginning of this farce has been proven by SCO themselves: the common code is BSD-licensed (not "public domain") code that's long been freely redistributable. The example they showed is paticularly damning, since it's been released multiple times... twice by SCO themselves!

  7. Definitely not! SCO can make all kinds of ridiculus claims they want in the U.S., but before they prove anything, they have no rights to threaten Linux users around the world to pay them for something they didn't even create! Every cou Anonymous -- 21/08/03

    Definitely not!

    SCO can make all kinds of ridiculus claims they want in the U.S., but before they prove anything, they have no rights to threaten Linux users around the world to pay them for something they didn't even create!

    Every country should follow Germany's lead - to ban SCO from spreading FUD until there's a court ruling. I bet when the lawsuit is done, SCO won't be around to collect anything.

  8. Well, SCO still keeps general linux files on their FTP site (ok everyone knows that for a long while) and now that they changed their strategy taking aim on attacking the GPL, they've put a warning on their ftp MOTD that those files are been kept there on Anonymous -- 21/08/03

    Well, SCO still keeps general linux files on their FTP site (ok everyone knows that for a long while) and now that they changed their strategy taking aim on attacking the GPL, they've put a warning on their ftp MOTD that those files are been kept there only for complying old contracts purposes which means? Which means they are still using everyone else codes not to have their contracts revoked which still means revenue for them. IMHO, IBM and Linux Association should sponsor every small and kind hearted programmer who inserted at least 1 line of code in linux so they can all place a counter-suit against SCO. That would be fair enough. SCO would be history and every company that think of doing such a thing in any near future would think twice.

  9. http://www.perens.com/SCO/SCOSlideShow.html More proof that the SCO Group's cases against Linux Users is Bogus Anonymous -- 21/08/03

    http://www.perens.com/SCO/SCOSlideShow.html

    More proof that the SCO Group's cases against Linux Users is Bogus

  10. I think that it is darn clever. As a SCO executive, you have a bundle of shares that are in danger of slipping to zero value. You need to do something otherwise you will be the final thud in the long tech wreck. So you create some nois JonB -- 21/08/03

    I think that it is darn clever.

    As a SCO executive, you have a bundle of shares that are in danger of slipping to zero value. You need to do something otherwise you will be the final thud in the long tech wreck.

    So you create some noise and FUD about the ghost competitor that gives away their product. You make a claim that your intellectual property rights have been infringed, and that you have evidence on a line-by-line basis that chunks of code have been taken and illegally inserted into the competing product. You show this code only to non-technical people under NDA, without providing any history on the transition of code. These verified but otherwise technically unsubstantiated claims filter out to the market.

    Your case seems viable and your share prices go up. You sell enough stock at these prices such that you at least obtain some benefit from your share holdings yet not so large an amount that you might be investigated for share market manipulation.

    Finally, you release sufficient information that finds its way to the public domain and damages your case. You withdraw your claims and slip into obscurity with the monetary compensation you have managed to obtain.

    A wonderful three-act opera with comedy, drama and tragedy. The third act has yet to play out and there may be a surprise ending. Don't draw the curtain yet!

  11. Let's see: 1. SCO are not capable of reading copyright laws 2. They show BSD code as infringing 3. They show other people's code as infriging 4. The claim independently developed code, some even covered by other people's patents, Anonymous -- 21/08/03

    Let's see:

    1. SCO are not capable of reading copyright laws
    2. They show BSD code as infringing
    3. They show other people's code as infriging
    4. The claim independently developed code, some even covered by other people's patents, is infringing
    5. They claim that something is a trade secret that has been floating around for 30 years and they published themselves under GPL/BSD licences
    6. They are threatening with lawsuits that have no legal basis
    7. They claim that the licence they use themselves is invalid (GPL)

    I think we should all be very afraid :-)

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