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SCO May Countersue Red Hat, SuSE Joins The Fray 622

uninet writes "The SCO Group, Inc. today released a statement concerning the lawsuit filed against it yesterday by Red Hat, Inc. The release quotes Darl McBride, SCO's President and CEO, as being 'disappointed' with Red Hat CEO Matthew Szulik for not being 'forthcoming' about Red Hat's intentions in a previous discussion." Reader psykocrime adds "According to this SuSE press release, SuSE has publically announced their support for RedHat's actions against SCO. Quoting from the press release: 'SCO has already been halted in Germany and we applaud Red Hat's actions to help end their activities in the US -- and beyond. We applaud their efforts to restrict the rhetoric of the SCO group -- and the FUD they are trying to instill -- and will determine quickly what actions SuSE can take to support Red Hat in their efforts.'" Read on for a few more links.

Vladimir writes "What no one has really touched upon is that the SCO vs. IBM court date is in April 2005, which could mean that the resolution of this case could be somewhere in 2006-2007, by which time Linux or any other OS may be irrelevant. People please keep your wallets in your pocket. Also, this lawyer has a long analysis of SCO extortion attempts and debunks a lot of their FUD."

Besides which, Omega writes "VNUnet has a story on how the economic analysis firm The Butler Group predicts that even if SCO can demonstrate there is offending code in the Linux kernel, it could easily be replaced."

This discussion has been archived. No new comments can be posted.

SCO May Countersue Red Hat, SuSE Joins The Fray

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  • by PoochieReds ( 4973 ) * <[jlayton] [at] [poochiereds.net]> on Wednesday August 06, 2003 @07:50AM (#6624379) Homepage
    It's standard business practice to countersue when someone sues your company. The merits of the case have very little to do with it.

    Nothing to see here, move along...
  • by n3rd ( 111397 ) on Wednesday August 06, 2003 @07:55AM (#6624403)
    In typical Slashdot fashion the story has been exaggerated:

    We will prepare our legal response as required by your complaint

    As anyone with the reading comprehension of a 3rd grader can tell, this does not say or even implies anything about counter-suing.
  • by OMG ( 669971 ) on Wednesday August 06, 2003 @07:55AM (#6624405)
    I contacted SCO Germany and tried to get an offer for a desktop licence. On the phone a SCO employee said I should stop "babbling" (yes, she used that word). I should sent an email instead. Others have tried that weeks ago and got no reaction up to now. The company doing the press releases for SCO Germany informed me that they are not allowed to comment on the licence in any way, too.

    It looks like there is absolutly no chance to buy the SCO licence for Linux in Germany at the moment.
  • Maffia (Score:1, Informative)

    by olderchurch ( 242469 ) on Wednesday August 06, 2003 @07:59AM (#6624424) Homepage Journal
    The way it is described at lawlaw.com, sounds like racketering....
  • what sun thinks (Score:5, Informative)

    by t123 ( 642988 ) on Wednesday August 06, 2003 @08:02AM (#6624449)
    according to this eweek [eweek.com] story, sun believes it SCO can screw off:

    In the early 1990's, Schwartz said, Sun chief executive Scott McNealy agreed to spend several million dollars to take a broad license with AT&T, essentially granting Sun legal rights equivalent to ownership of Unix code.

    "As a result of that decision in 1993, we can do whatever we want (to the code)," Schwartz said. "We can drive forward and indemnify our customers too," a basic responsibility of any intellectual property provider, he said.
  • by Skye16 ( 685048 ) on Wednesday August 06, 2003 @08:02AM (#6624451)
    According to a letter to Szulik that was attached to the announcement, SCO "will prepare our legal response as required by your complaint." McBride continued by suggesting that his company's response "will likely include counterclaims for copyright infringement and conspiracy."

    kthxbye.
  • Re:See the code (Score:5, Informative)

    by Sique ( 173459 ) on Wednesday August 06, 2003 @08:08AM (#6624500) Homepage
    Because the original case is not about the code itself, but about IBM allegedly infringing on the licensing conditions for AIX. SCO states that with IBM releasing code to the Linux kernel which was written for AIX and thus covered by the Unix license, IBM infringed on the contract.

    SCO states that IBM had to protect not only the licensed source code but also the code IBM wrote to make a derivative work from the source code.
  • by SmackCrackandPot ( 641205 ) on Wednesday August 06, 2003 @08:13AM (#6624525)
    Looking back at recent history, I found this list compiled from various technology news reports...

    January 2000 Rambus files patent infringement lawsuit against Hitachi
    June 2000 Rambus settles lawsuit against Hitachi
    August 2000 Rambus files patent infringement lawsuit against Infineon
    August 2000 Micron files patent infringement lawsuit against Rambus
    August 2000 Hyundai files patent infringement lawsuit against Rambus
    Sept. 2000 Rambus files patent infringement lawsuit against Micron and Hyundai (Hynix)
    May 2001 Rambus lawsuit against Infineon dismissed, fined US $3.5 million
    August 2001 Rambus faces class-action lawsuit for fraud
  • by linuxislandsucks ( 461335 ) on Wednesday August 06, 2003 @08:17AM (#6624543) Homepage Journal
    Since no user of any copyrighted software can be charged for damages of copyright infringment even windows users, what di you buy?

    and how did you make the case to buy this thin air with your company's CFO?

    Copyright infringment looks for damage by the infringer..did you put code in linux?
  • by veddermatic ( 143964 ) on Wednesday August 06, 2003 @08:18AM (#6624550) Homepage
    Normally one buys stock in hopes that it will go up. "Shorting" a stock is agreeing to purchase stock at a future date in hopes it will go down.

    In a nutshell, it's the reverse of a "normal" stock trade... you actually SELL first, THEN buy later.

    ex: I believe SCO is going to tank, so I 'sell' 100 shares today at $3 each. In one months, which is how long I bought my short for, I then buy the stock for $1 and (minus commissions, minus the fees for the 3rd party who has to cover the month where I didn't have the stock I sold) I make money.

  • by the lurking man ( 596716 ) on Wednesday August 06, 2003 @08:40AM (#6624668)
    Let's hope not, because you forgot an important part of the Rambus saga.

    January 2003 Rambus wins appeal; court throws out fraud claims, interprets patents favorably to Rambus, and remands for new trial.

  • Re:SCO (Score:3, Informative)

    by ninthwave ( 150430 ) <slashdot@ninthwave.us> on Wednesday August 06, 2003 @08:44AM (#6624693) Homepage
    SCO Announces Intellectual Property License for Linux
    Tuesday August 5, 12:43 pm ET
    SCO Provides Commercial Linux Users With Run-Time, Binary License to Run SCO's Intellectual Property in Linux

    # LINDON, Utah, Aug. 5 /PRNewswire-FirstCall/ -- The SCO Group, Inc. (Nasdaq: SCOX - News), the owner and licensor of the core UNIX(R) operating system source code, today announced the availability of the SCO Intellectual Property License for Linux(R). The run-time license permits the use of SCO's intellectual property, in binary form only, as contained in Linux distributions. By purchasing a SCO Intellectual Property License, customers avoid infringement of SCO's intellectual property rights in Linux 2.4 and Linux 2.5 kernels. Because the SCO license authorizes run-time use only, customers also comply with the General Public License, under which Linux is distributed.(Logo: http://www.newscom.com/cgi-bin/prnh/19990421/SCOLO GO )

    from Yahoo biz release [yahoo.com]

    Now the article continue that it is a run time only license to comply with the GPL which is why I requested for comments on is this stretching the GPL asking to use the kernel in binary form only and not giving the option to remove offending code. Basically hijacking the kernel.
  • Re:See the code (Score:3, Informative)

    by B'Trey ( 111263 ) on Wednesday August 06, 2003 @09:18AM (#6624911)
    If it was only the original case, Red Hat wouldn't be bringing suit. SCO is also contacting customers of Red Hat (as well as other Linux versions), warning them that they're liable for copyright infringement or violation of trade secrets, and offering to sell them a license. That's why Red Hat is suing.
  • by kilgortrout ( 674919 ) on Wednesday August 06, 2003 @09:51AM (#6625114)
    SCO was enjoined in Germany in 7 days because they refused to defend the action; basically they just rolled over. What kind of justice system do you want? One where anyone can get an injunction based on mere allegations in a complaint without the necessity of coming forward with proof and the opportunity for the otherside to offer proof in their defense?
  • by Stone316 ( 629009 ) on Wednesday August 06, 2003 @10:37AM (#6625463) Journal
    I was curious to see if any stock holders were cashing in on SCO's inflated stock price. Check out the following link which details the last month. Not alot of huge transactions, maybe their really think their cashcow vision will come true? Yahoo Insider Trades [yahoo.com]
  • Improper analogy (Score:4, Informative)

    by burgburgburg ( 574866 ) <splisken06NO@SPAMemail.com> on Wednesday August 06, 2003 @10:41AM (#6625489)
    As has been pointed out, this is a copyright issue, not one about theft/piracy which is clearly the case in your analogy.
  • by Anonymous Coward on Wednesday August 06, 2003 @10:47AM (#6625556)
    It took all of 7 days fot LinuxTAG to shut up SCO in Germany, likewise in Poland and Australia. If SCO is yet to prove it's case, why is it possible for it to keep yelling everyday?

    The LinuxTAG case was basically a putup-or-shutup complaint and SCO folded immediately. The RedHat case is much more complicated containing 7 individual complaints and SCO won't have the option of just folding.
  • Re:See the code (Score:2, Informative)

    by mrtrumbe ( 412155 ) on Wednesday August 06, 2003 @11:33AM (#6625930) Homepage
    IANAL, but this guy [lamlaw.com] is. Did you even read the material linked to from the original story??

    From the previously mentioned lawyer's analysis:

    If SCO wanted to have any infringement removed from Linux, they could help do that. But, SCO is refusing despite direct requests from many parties including RedHat, IBM and Novell. They just insist upon a purely illegal activity and little else. It is important to note that disclosing the so-called areas of infringement would not lessen their claims against IBM for contract violations nor violations of trade secret. Those claims against IBM stand on their own without the withholding of key information. The same is true should SCO want to charge RedHat or any other party with copyright infringement. Fixing Linux now does not eliminate any claims or charges that rights have been infringed in the past.

    The only "case" that releasing the infringing code would damage is SCO's threatened lawsuits against Linux customers. It would not hurt their case against IBM (the only suit they've actually filed to date).

    So would it hurt their case against Linux customers?? Nope. Because they have no case against the majority of Linux cutomers, private or corporate.

    Again, from the analysis:

    The threat to Linux customers is totally without a legal foundation. And, SCO has deliberately misrepresented those laws in order to extort money from Linux customers. There is no question of that. That is a fools move. It is a fools move because it imposes upon SCO significant legal liability for harm caused to the Linux market. The RedHat law suit refers directly to this problem in its discussion about the tortuous and willful interference with business relationships between RedHat and its customers. SCO (and without any reasonable legal basis) contacted Redhat (and IBM) customers and threatened legal action if they did not pay money. It does not matter what the money is ostensibly for. Linux customers do not need a copy of Unix from SCO to run their computers. In fact, the statement from SCO clearly suggests that Linux would continue to be used. The only benefit to the customer would be not being sued by SCO. Well. For money, anyone can make that offer. And, if you have a legal basis for filing a law suit, that would be business. But, if the legal basis is missing, it becomes extortion.

    The point is that by persuing Linux customers SCO has opened the door to litigation against itself. Those acts are widely viewed as illegal if no basis for a lawsuit exists. And most people outside of SCO believe potential suits against Linux customers to be baseless (like suing the NYTimes for releasing a chapter of Harry Potter--they made the IP public, but that doesn't implicate NYTimes readers in the crime). The infringing code never comes into play in the case of SCO vs. Linux customers.

    And the case infringing code does effect--the SCO vs. IBM case for IP violations--wouldn't be damaged by exposing the infringing code. That case is about the release of trade secrets and intellectual property into the public domain, an issue that can be proven independant of corrections made to Linux code after the infringing code is divulged.

    Please read before you post.

    Taft

  • sol:/usr/src/linux # egrep -ri '(@sco\.|@caldera)' * 2>/dev/null
    CREDITS:E: sp@caldera.de
    arch/i386/kernel/microcode.c: * 1.0 16 Feb 2000, Tigran Aivazian <tigran@sco.com>
    arch/i386/kernel/microcode.c: * 1.01 18 Feb 2000, Tigran Aivazian <tigran@sco.com>
    arch/i386/kernel/microcode.c: * 1.02 21 Feb 2000, Tigran Aivazian <tigran@sco.com>
    arch/i386/kernel/microcode.c: * 1.03 29 Feb 2000, Tigran Aivazian <tigran@sco.com>
    drivers/net/slip.c: * from Jim Freeman's <jfree@caldera.com>
    drivers/net/tlan.c: * Tigran Aivazian <tigran@sco.com>: TLan_PciProbe() now uses
    drivers/char/drm/drm_context.h: * 2001-11-16 Torsten Duwe <duwe@caldera.de>
    drivers/scsi/ips.c:/* 4.00.06a - Port to 2.4 (trivial) -- Christoph Hellwig <hch@caldera.de> */
    drivers/scsi/advansys.c: Erik Ratcliffe <erik@caldera.com> has done testing of the
    drivers/sound/esssolo1.c: * up. Marcus Meissner <mm@caldera.de>
    drivers/sound/esssolo1.c: * Marcus Meissner <mm@caldera.de>
    drivers/sound/maestro.c: * v0.15 - May 21 2001 - Marcus Meissner <mm@caldera.de>
    drivers/sound/rme96xx.c: Marcus Meissner <Marcus.Meissner@caldera.de>
    drivers/sound/nm256_ audio.c: * 19-04-2001 Marcus Meissner <mm@caldera.de>
    drivers/sound/sonicvibes.c: * Meissner <mm@caldera.de>
    fs/freevxfs/vxfs_olt.c:&nbs p; printk(KERN_NOTICE "vxfs: please notify hch@caldera.de\n");
    net/ipx/af_ipx.c: * Portions Copyright (c) 1995 Caldera, Inc. <greg@caldera.com>
    net/ipx/af_spx.c: * Jim Freeman <jfree@caldera.com>
  • by Svartalf ( 2997 ) on Wednesday August 06, 2003 @12:01PM (#6626203) Homepage
    Copyright does not create a thing, per se, like a television. When you copy and distribute something without the Copyright holder's permission, you're not commiting an act of theft, but one of infringement- you're taking away the right of the holder to control production and distribution of the IP in question. It's the way the law is worded and there's a good reason for it as IP isn't really property- when you infringe, you don't take away the idea; when you steal, you take away the object and it's use from the owner.

    Now, having made this distinction, I'll make a further observation that makes your analogy invalid. The Linux kernel people as a whole didn't take the IP in the first place. The closest analogy to this if you WERE to try to apply a "theft" model on the whole thing would be this:

    Party A steals a TV set from Party B's house. He doesn't get immediately caught and sells the TV at a garage sale or at a flea market for what would be a fair price (so as to not tip people off that it's hot) to Party C. Party A is actually caught up with and is punished. Party C is not guilty of anything because he bought in good faith- but he may be required to relinquish the stolen property if Party A wants it back.


    In this case, the party (or parties) that is actually guilty of the act of infringement is the only one that will face fines and damages- the rest of the people distributing Linux will be ordered to remove the offending IP (which is the very thing we've been TRYING to do anyway...) or license it accordingly and will be given a reasonable amount of time to decide and act on the order.
  • Re:See the code (Score:3, Informative)

    by esarjeant ( 100503 ) on Wednesday August 06, 2003 @12:17PM (#6626341) Homepage
    Point #2 is significant in this case; any IP infringement I have seen in the past has been prefixed with a cease and desist letter. No evidence has been presented, this is a clear-cut case of FUD on the part of SCO.

    More info here:

    Linux Dispute Keeps Escalating [thestreet.com]

    Don't forget, SCO is also under SEC investigation for financial misdoings. "The consolidated complaint alleges certain improprieties regarding the circumstances surrounding the underwriters' conduct during the Company's [SCO's] initial public offering and the failure to disclose such conduct in the registration statement in violation of the Securities Act of 1933, as amended." This is not a company on the up & up, it's not impossible to imagine a shady dealing with MS to ensure uncertainty in the Linux camp.

    With the current SCO pricing strategy the TCO argument for Linux goes out the window. Technically speaking it's more expensive to run a Linux shop than an NT/W2K shop. MS now wins the cost argument handsdown; interesting how that happened. Also note that the MS deal gives $5M to SCO for the next 3 quarters. With the cost of payroll at around $5M this is enough to keep the company afloat. The additional $8M initial amount can be used to mitigate deferred revenues and other long term expenses. This deal is fishy, I expect someone is going to get hurt real bad and it might just be Microsoft.
  • by Prof.Phreak ( 584152 ) on Wednesday August 06, 2003 @03:02PM (#6627615) Homepage
    I doubt you realize how much engineering effort Solaris represents. It's internals are actually *thought out* fairly well. The kernel is much more robust in terms of high load and availability than the Linux one (try it, see for yourself).

    Dumping it would be 'bad' by any measure. The best thing that I'd personally like to see happen is them merging Solaris and Linux.

    Linux has a lot of quick & dirty hacks, it supports a ton of consumer hardware, etc., solaris is more of a stable-well-thought-out OS, that lacks some of that 'agility' that Linux has.
  • by DavidTC ( 10147 ) <slas45dxsvadiv.v ... m ['box' in gap]> on Wednesday August 06, 2003 @06:00PM (#6629092) Homepage
    Trade secrets don't work that way. Pepsi is perfectly free to use Coke's recipe all it wants.

    However, it's forbidden from breaking the law, or various contracts, to gain it. It can't pay some guy under an NDA at Coke to spill the formula. It can't pay a cat burgler to break in and steal it.

    However, it can reverse engineer the formula, it can read it out of a book Coke accidently left it in, (Which, BTW, has basically happened...at least the formula they were using in the fifties...they left it in a book.), they can pose as tourists and take the tour with super high-power cameras photographing everything, etc. As long as they do not violate criminal or contract law, Coke would have no grounds for anything.

    Likewise, if someone else broke into Coke, and stole the formula, and posted it on Usenet, Pepsi is perfectly free to use it.

    You can't 're-secret' a trade secret...if a single person stole it and used it, without telling anyone, part of the damages they agree to, when caught, might be to sign an NDA, so it might remain a trade secret. But once the cat is out of the bag, it's out of the bag. Coke could get massive damages from the person who stole it and posted it to Usenet, but that's it.

    In fact, 'trade secrets' are just a logical extension of the law...they let you get damages from someone who broke the law (or your contracts) and, although they didn't 'steal' anything, still has made off with a significant advantage of yours. And that's the only person you can go after...someone who broke the law or your contracts.

    Meanwhile, anyone who didn't commit the crime but ended up with the 'secrets' is perfectly free to do whatever they want.

    If there were any trade secrets put in Linux, they are no longer trade secrets and are freely usably by anyone on the planet however they want.

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