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Lawsuit Says GPL is a Price-Fixing Scheme 850

Soko writes "Yes, it's real. The crack team of Daniel Wallace and Maureen O'Gara have ganged up once again to protect their version of "The American Dream," he by filing a lawsuit in Indiana court saying the GPL is nothing more than a price fixing scheme designed to drive software vendors out of business, she by parroting the proprietary vendors' "The GPL kills business" mantra (as well as a few well placed insults at the free software community). I found the story on Groklaw - no links to Ms. O'Gara or Mr. Wallace from me. I'm still kind of dumbfounded at the audacity of Mr. Wallace, but wonder if he has an angle that might have a slim chance of prevailing." This Google search reveals some of Daniel Wallace's views on the GPL.
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Lawsuit Says GPL is a Price-Fixing Scheme

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  • by Anonymous Coward on Monday May 02, 2005 @06:43PM (#12413805)
    They're just mad because you tk ther jeb!
    • by ShaniaTwain ( 197446 ) on Monday May 02, 2005 @06:49PM (#12413873) Homepage
      Dear sirs,

      I am writing to express my outrage at the way your freedoms impose unfair limitations on my freedom to limit your freedoms.

      Also it looks like you might be having more fun than me. You will be hearing from my lawyers!
      • by Jeremiah Cornelius ( 137 ) on Monday May 02, 2005 @06:52PM (#12413916) Homepage Journal
        Let's unfairly fix the price at...

        ZERO!

        • by Alien Being ( 18488 ) on Monday May 02, 2005 @07:05PM (#12414053)
          Yeah, we'll make up for it with high volume.
          • by Jeremiah Cornelius ( 137 ) on Monday May 02, 2005 @08:18PM (#12414776) Homepage Journal
            It's not a "price fixing" scheme - it's a plan to meet chicks!

            Obviously, it's so inept it fulfilling that end, that it can be mistaken for nearly anything.

        • by nametaken ( 610866 ) on Monday May 02, 2005 @07:46PM (#12414481)

          Yeah and we must be guilty of dumping goods and services in the market at below cost to take marketshare.

          You dirty, dirty volunteers.
    • by nacturation ( 646836 ) <nacturation AT gmail DOT com> on Monday May 02, 2005 @07:06PM (#12414065) Journal
      They're just mad because you tk ther jeb!

      Someone team-killed Jeb Bush? This is the games section right? Oh, wait...
  • Springer show. (Score:5, Interesting)

    by FyRE666 ( 263011 ) * on Monday May 02, 2005 @06:43PM (#12413811) Homepage
    I'm surprised that Slashdot actually posted this drivel on the front page (well actually the real surprise was the lack of spelling errors!) As has been the case for several months now, O'Gara's articles have become deliberately more provocative and frankly ridiculous as she attempts to push up the banner hits on the LBW/LBN website. I don't think she even bothers to cite anything resembling a fact anymore, but simply blurts out the most ridiculous thoughts that she finds stomping around the inside of her head.

    For anyone who isn't aware, one of the other regular "writers" for LBW/LBN was recently outed, caught trolling on the SCOX message board to pull in more hits with his crackpot theories. It's looking like a company policy.

    There's no doubt that MOG is simply using this Wallace fellow to help finance the ailing website. Personally I'm not going to visit it, and I'd suggest anyone else with any sense also not bother. The slashdot effect is exactly the thing they wish for over there... unless everyone visits with Lynx, or images turned off, of course ;-)

    LBW/LBN is fast becoming the "Jerry Springer show" of the tech news sites...
  • by deathcloset ( 626704 ) on Monday May 02, 2005 @06:45PM (#12413832) Journal
    what's so bad about fixing the price of software?
  • This is too funny! (Score:3, Insightful)

    by winkydink ( 650484 ) * <sv.dude@gmail.com> on Monday May 02, 2005 @06:45PM (#12413834) Homepage Journal
    What will they say next? Using FOSS contributes to global terrorism? That everytime you download FOSS, the drug cartels profit? That FOSS consitiutes violates RICO laws?

    Price fixing my foot!
  • by elid ( 672471 ) <.moc.liamg. .ta. .dopi.ile.> on Monday May 02, 2005 @06:46PM (#12413845)
    Bottled watter companies file lawsuit that running tap water is a price fixing scheme! Oxygen tank manufacturers claim air is a price fixing scheme! Recording Industry says making your own music is a price fixing scheme!
    • by kris_lang ( 466170 ) on Monday May 02, 2005 @07:06PM (#12414073)
      You realize, sarcasm apart, that this "price fixing" or "unfair competition" is exactly what all of the TelCo's and the Wireless carriers are claiming about municipal WiFi efforts...

      It's sad that corporations think that they deserve special favors, or believe that they will receive them for the right price...

      oh wait, they believe it because it happens...
  • Crack Tram? (Score:4, Funny)

    by Anonymous Coward on Monday May 02, 2005 @06:47PM (#12413847)
    Is a crack tram anything like a crack house? On wheels maybe?
  • by shades66 ( 571498 ) on Monday May 02, 2005 @06:50PM (#12413886)
    Read the complaint that is linked in the groklaw story.. (http://www.groklaw.net/pdf/Wallace-Complaint.pdf [groklaw.net])

    It starts out as "The Plaintiff Daniel Wallace......"

    and in the damages section changes to "The Defendant Daniel Wallace..."

    what a moron..

  • Right... (Score:5, Insightful)

    by jleq ( 766550 ) * <jleq96.gmail@com> on Monday May 02, 2005 @06:50PM (#12413889)
    I always thought that the idea of a price-fixing scheme was to drive prices *up*. What they have said makes absolutely no sense. Free software is causing prices to go up? I think not...

    If anything, free software drives prices down (remember when IE was released for free, while Netscape was still selling for $30?). Oh, the commercial software industry is dying too. Then why is Windows still the most popular operating system in existance?
    • Re:Right... (Score:5, Insightful)

      by OpenYourEyes ( 563714 ) on Monday May 02, 2005 @07:01PM (#12414014)

      In the long term, yes. But in the short term it may be desirable for the price-fixers to undercut the price to corner the market. Once they have driven others out of the market, they are free (har har) to set the price to whatever they want.

      This is the theoretical problem with a monopoly, or with a small group that are seeking to drive others out of the market.

      In that sense, it does seem that the companies that are pushing GPL are attempting to price-fix software at 0 for now, so they can drive other companies out of the software industry so they can make money through software services instead.

  • It's absurd (Score:3, Insightful)

    by grasshoppa ( 657393 ) on Monday May 02, 2005 @06:50PM (#12413892) Homepage
    It's an absurd lawsuit brought by a nutter.

    This is nothing new. Happens all the time. Only reason it's on /. is because it pertains to the GPL and we all need a good laugh on a monday.

    Hey, where's the foot icon?
  • by NoMoreNicksLeft ( 516230 ) <john.oyler@ c o m c a st.net> on Monday May 02, 2005 @06:52PM (#12413914) Journal
    It has nothing to do with reason.
    It has nothing to do with justice.
    It has nothing to do with quality and or merits.
    It has nothing to do with "who deserves to win".

    If not SCO, then someone else will win. It will be the stupidest ruling in the history of law, no doubt, but somehow it will win. IBM on our side or not. I am not a troll, though it should be obvious I'm far from being an optimist.

    I hope I am wrong.

    All that said, does it suprise you that with SCO being an embarrassment, that Microsoft would start up a few other legal experiments? They no doubt have people whose sole job is to dream up possible litigation, and we can expect 1-3 of these things per year, until one succeeds or they run out of money. Guess which one will happen first.
  • Paraphrasing ESR (Score:5, Interesting)

    by Eberlin ( 570874 ) on Monday May 02, 2005 @06:52PM (#12413924) Homepage
    The software industry is a service industry operating under the guise of a manufacturing industry.

    Of course there are some exceptions -- the gaming industry, for example (though MMORPGs have the "subscription service" thing down). Unfortunately I can't name any others at the time but I'm sure there's more. :)

    The GPL isn't a price-fixing scheme...it basically exposed the current artifically inflated price-fixing scheme that is proprietary software.

    Adapt and evolve, baby. Or cry about it all the way to extinction.
    • by back_pages ( 600753 ) <<back_pages> <at> <cox.net>> on Monday May 02, 2005 @07:23PM (#12414242) Journal
      Well, if everybody owned a factory, what would the price of your bland manufactured good be?

      Not very much.

      When everybody has a compiler, what is your bland piece of software worth?

      Not very much.

      Without entering into whether or not it's right, the GPL definitely raises the bar on what makes a marketable piece of software. I think the everybody-owns-the-factory analogy is pretty appropriate.

      Once upon a time, people made a living by delivering ice to your home. Now we have freezers and make our own ice. What kind of money can you make delivering ice?

      Not very much.

      Does that mean you should attack the freezer manufacturers or does it mean you should find a better way of doing business?

      Apparently, the answer to that question will be decided in a court of law rather than the court of common sense.

  • Heh (Score:4, Interesting)

    by Anonymous Coward on Monday May 02, 2005 @06:53PM (#12413928)
    Okay, normally a price-fixing scheme artificially inflates pricing. Price fixing laws are there to protect the consumer, iirc, and I'd say the GPL is the ultimate consumer protection.

    Wouldn't dumping be a more accurate complaint, since anti-dumping laws protect other businesses from large competitors selling for below cost? But since there's virtually no cost involved in making copies of software and the R&D is typically recouped by service contracts with IBM, Red Hat and the like, this lawsuit would appear to fall under the catagory of 'hilarity'.

    I don't mind paying for software (except for basic OS and utilities), but if you're going to charge me for it, you damn well better be offering a better product than what a bunch of students and professionals crank out in their spare time for free.
  • by ThatDamnMurphyGuy ( 109869 ) on Monday May 02, 2005 @06:54PM (#12413942) Homepage
    Maybe they should GPS track all GPL software authors. Then businesses can see what GPL users are in the registry and track their movements. :-)

    (Seriously. The only time GPL hurts businesses is when they use code and don't honor the GPL. Their their own stupid ass mistakes.)
  • by gosand ( 234100 ) on Monday May 02, 2005 @06:57PM (#12413975)
    You know, if you don't like GPL software, don't buy it.
  • by expro ( 597113 ) on Monday May 02, 2005 @06:57PM (#12413978)

    but wonder if he has an angle that might have a slim chance of prevailing

    Put any issue like this in a court, especially in front of a jury, especially in America, and literally anything can happen, regardless of the lawyers or facts on either side.

    Juries will do what they think is justice based upon what they think they understand.

    Saying that SCO's case is lost, or this one would not stand a chance is simply not legitimate. Many experienced legal commentators seem to tend to give either side in just about any major case a 50-50 chance of winning. That is why the smartest thing you can do is to figure out how to stay out of court, unless you are evil and rich and like injustice. Over the long haul it may get corrected, but the courtroom is a roll of the dice.

    That is also probably why jury-tried issues carry little if any weight as legal precedence. While it would be very incorrect to say that the facts are irrelevant, it would also be very incorrect to say that they will carry the day or that this or any other issue could not be won in court, especially before a jury.

    • by mcc ( 14761 ) <amcclure@purdue.edu> on Monday May 02, 2005 @07:03PM (#12414033) Homepage
      Juries will do what they think is justice based upon what they think they understand.

      If I'm not terribly mistaken juries are not permitted to rule on issues of law, only those of fact. This particular suit appears to be demanding nearly purely a ruling of law.
      • by hendersj ( 720767 ) on Monday May 02, 2005 @08:09PM (#12414681)
        Having sat on a jury, I can tell you that that's the intent, but in fact juries have to interpret law in order to decide whether the facts support a guilty or a not guilty verdict.

        In my case, the plantiff was a person who was busted for posession of methamphetamine and drug paraphanelia.

        Both sides present to the jury what they think will give the best chance for conviction (ie, the prosecution does this) or acquittal (the defense's job). In preparing the papers for the jury, both sides are allowed to submit papers that describe the offense.

        Now this guy was guilty as all hell of what he was accused of. After the case was over, the defense attorney came in and asked the jury what she could have done differently, and those of us talking to her agreed that putting him on the stand would've helped - but she said "Oh, I couldn't have done that, because he was in fact guilty."

        She then explained that what would've happened had she had the defendant testify was that the prosecution would've asked him about the warrant he was served with, and he would've had to testify as to his drug production history, which would guarantee a conviction.

        Also, in amongst the papers we were given was a definition of the statute we were to rule on where it stated that posession of drug paraphanelia required an intent to use - which wasn't proven in the case. I actually stopped to talk to the judge about this after the case was over, and he said "Yeah, defense attorneys use that citation of case precident to try to get their defendants an acquittal - it never works, but they have to try it." The way it was presented was in its case form - and to a non-lawyer, that can be presented to it looks like a statute.

        All jokes aside about not being able to avoid jury duty - it is a very interesting process, and if you live in the US, you should try it at least once.
        • by belmolis ( 702863 ) <billposerNO@SPAMalum.mit.edu> on Tuesday May 03, 2005 @12:30AM (#12416541) Homepage

          It's true that juries will do the darndest things, but the case will only reach a jury if the judge decides: (a) that the suit satisfies various legal requirements (standing, jurisdiction, etc.) and (b) that there is a significant issue of fact in dispute. Furthermore, in a civil suit such as this, there isn't always a right to a jury trial. The rules for determining when there is a right to a jury trial in a civil suit in federal court are complicated, but generally speaking, when the relief requested is just an injunction (as opposed to monetary damages) there is no right to a jury trial. (Here [ajs.org]'s a summary of the rules.) So, this case will almost certainly be decided by a judge.

  • Case Study (Score:3, Insightful)

    by derubergeek ( 594673 ) * on Monday May 02, 2005 @06:59PM (#12413997) Homepage Journal
    Apple makes a good case study for the massive negative impact of GPLd software. You can see [newratings.com] how their profits have been plummeting since they (partially) embraced the Open Source model.
  • by Greyfox ( 87712 ) on Monday May 02, 2005 @07:05PM (#12414055) Homepage Journal
    "Motion to dimiss your honor. The plantiff is clearly on drugs."
  • by starseeker ( 141897 ) on Monday May 02, 2005 @08:03PM (#12414621) Homepage
    There is a rather vocal individual in the comp.lang.lisp group that makes the argument free software is evil, because it makes it impossible to charge enough for software to make a living. To be fair, he feels this way about ANYTHING for free, so while I strongly disagree with him he is consistent. I'd dearly love to hear him and Stallman have an hour long debate, but I doubt it will ever happen.

    People seem to think they have some kind of entitlement to profits. People, the world doesn't owe you ANYTHING. Generally speaking, if you can't convince people to pay you money for your work, it's your problem. If part time hobbiest developers can create free tools that are better for the price than your commercial ones, I'd say you need to work harder.

    In a true capitalistic system, profits are VERY hard to come by. This is a good thing, because people work hard without sucking in a huge amount of resources, to the betterment of society. Competition sucks, because you never get to rest on your laurels. You have to keep running to stay in place, and frankly that's BY DESIGN. It is very nearly the whole POINT. You have to really produce something people want to get a profit, and you have to keep innovating to keep it. If volunteer efforts can produce a free tool which is good enough, that means you need to step it up a notch to produce something people want to pay you for. After all, you're expecting to be paid, so you should be able to put more time/energy into it.

    Seesh. What ever happened to doing something just to make the world a better place, or make other people happy? Now it's price fixing. I feel very sad when I see this kind of thing, because it underlines how little regard we have for the world around us. The world is a cold, empty place when people generously and cheerfully giving you something out of the goodness of their hearts is looked upon as price fixing, and it's enough to make me sick.

    The worst part of it is, in many these companies are making a profit over and above what they are paying their employees, and yet somehow this isn't enough. Providing people with productive, well paying jobs isn't the point, the point is MAKE MORE MONEY.

    At some point in the future, we are going to hit a situation where our economy CANNOT, because of limitations of physical resources, be driven by growth. It will have to be steady state, and I think the US is doomed when this happens because we don't know how not to be greedy, to appreciate the community around us, and be happy that it is prospering. We are focused on ME,ME,ME, and it can't go on forever. The Earth is finite, and the energy costs of space travel are not economic on the large scales of the global system. We WILL have to face it, and when we do I hope we can remember how to be human beings, and not just profit machines.
  • by geekee ( 591277 ) on Monday May 02, 2005 @08:12PM (#12414712)
    from here [freeadvice.com]:

    WHAT IS PRICE FIXING?
    What is price fixing - legal answers at FreeAdvice.com's business section

    "Most state statutes provide that fixing the price of a product or service in agreement with another individual or business is illegal. The general rule provides that a vendor may not in combination with another vendor agree to set a certain price thereby creating a fixed price within a certain market. A business acting on its own and not in concert with another may use legitimate efforts to obtain the best price they can, including their ability to raise prices to the detriment of the general public. Also, conformity of prices within a given product is not illegal unless such conformity was created by a combination of vendors agreeing on a set price. For example, where competitors agree to sell their goods or services at a specified price, minimum price or maximum price and they receive profits from such an agreement, they are in violation of price fixing. Additionally, setting a price to be charged only within a certain area in order to get rid of competition or to create a monopoly is generally illegal under most state laws. A majority of states have also enacted a "Below-Sales-Cost" law wherein businesses may not sell goods below cost if they do so with anti-competitive intent or effect."

    So, giving away something at a loss to drive competition out of business is illegal. I've never been a fan of anti-trust legislation, and now maybe anti-MS zealots will see my point of view if these laws start affecting them adversely.
  • by radarsat1 ( 786772 ) on Monday May 02, 2005 @08:15PM (#12414744) Homepage
    Wait a minute! HOLD THE TRAIN.

    I'm confused now. I've been reviewing all these reports that Linux has a greater total cost of ownership. So damn. What's this? Now it's unfairly fixing the price too low?
    I don't get it! What am I missing here???

    Someone help a poor capitalist out...

    ---
    Moral of the story: You can't have your cake and eat it too.
  • by oldwolf13 ( 321189 ) on Monday May 02, 2005 @08:18PM (#12414774) Journal
    You know what gets me...

    Is that companies who back these kind of ideas are the same ones who will outsource your job to save a buck. In a SECOND.

    So they cry when anybody taps their market (be it VOIP, FOSS, or whatnot), and they lobby for laws to *protect* their business. Yet they have no problems doing this to PEOPLE.

    Companies HAVE a responsibility to their customers, and the cities/towns/COUNTRIES they do business it. They should be MADE to give back instead of just taking taking taking.

    I'm tired of hearing stuff about "well it's their coumpany and they can do what they want." This way of thinking is really wrong, IMHO, and is just a symptom of how they have brainwashed everyone. Morality doesn't seem to exist in the corporate world, everything is for the blind pursuit of profit... generally by crawling up the backs of hard working people, then kicking them down when they reach the summit.

    Pure capitalism is faulty, somebody needs to reign these greedy people in. It'd be nice if someone could pull the wool back up, from over the general public's eyes.

    this all makes me so bloody angry.
  • by ishmalius ( 153450 ) on Monday May 02, 2005 @08:21PM (#12414797)
    After a slow and tiresome and unproductive day that I had today, it is such a nice gift that you give. The sheer absurdity of these people is gorgeous. They seem to portray the members of the Mad Hatter's Tea Party. Any problems that I might have pale in comparison to the chaos in these characters' tortured minds.

    I feel much better now. Thank you! ^^

  • by Dr. Mu ( 603661 ) on Monday May 02, 2005 @08:32PM (#12414883)
    It's interesting that they should bring this suit in Indiana. Who knows? Such a crackpot idea might get a sympathetic hearing there. After all, Indiana is the state which, in 1897, tried to legislate the value of pi [du.edu].

    Disclaimer: I grew up in Indiana. I don't live there any more.

  • by vhogemann ( 797994 ) <victor AT hogemann DOT com> on Monday May 02, 2005 @08:40PM (#12414973) Homepage
    Ok, this guy may be a joke.

    But what if [Pick Your Favorite Evil] decides to fund a real research to find a way to manipulate the laws until they make the GPL look illegal?

    I guess it already has been done, by a number of companies that have interests on OpenSource. We can only speculate about their findings...

    I don't know about the USA, but here at Brasil the GPL is a contract. And here, a contract is treated as a "law between peers". So, as long as it doesn't go against the legislation, it's as valid and enforceable as an EULA. Only that an EULA normaly restricts your rights, and give you lot's of rules to be followed... and the GPL grants you rights, since you follow some rules.

    I'm not a lawyer, but it would be interesting to see how the GPL stands against the legislation of every country in the world. Pehaps the FSF should put a map online, wiht green areas pointing where the GPL is valid and backed by the laws, and red areas where it's just a bunch of words with no value.

    The USA should be painted yellow, I guess.
  • Close, but way off (Score:5, Insightful)

    by Arkaein ( 264614 ) on Monday May 02, 2005 @10:59PM (#12416038) Homepage
    the GPL is nothing more than a price fixing scheme

    Actually, it's not the GPL which is a price fixing scheme, but copyright. As in copyright allows the author to set any price they want to license their work. Somehow I don't think Wallace, O'Gara, and countless others quite understand this simple fact (or are not willing to admit it, as this pseudo-monopolistic characteristic of copyright seems to fly in the face of other free market ideals).

    The GPL actually removes this restriction by allowing a copyrighted work to be licensed for any amount of money desired by any party with a copy of the work. Zero just happens to be the most typical number, for the practical reason that it is difficult to get customers to pay exorbitant sums for what is usually available elsewhere for free.

    Heh, maybe we should just abolish copyright and remove this restraint of trade in all cases. This way anyone could license any work created by anyone else for however much they thought they could get, though this probably isn't the type of "solution" the software industry has in mind.
    • by mark-t ( 151149 )
      Abolish copyright, and the GPL gets abolished along with it.

      Without copyright, anyone would be able to take a GPL'd work, change it, and distribute their changed version without any obligation to release the source (as the copyright on the original code would not be valid, the terms of the GPL itself would be equally invalid). How is this is any way in keeping with the intent of the author of a work that he placed under the GPL?

      If you like free software to remain free, we need Copyright.

  • by rewinn ( 647614 ) on Monday May 02, 2005 @11:55PM (#12416381) Homepage

    A huge volume of information is given away on the Internet for free!

    The other day, I saw some kids in a parking lot telling each other dirty jokes without charging a fee!

    Then there was Amy in high school; everyone says she gave away something for free, but I never found out what it was.

    Giving stuff away free harms people who would like to sell it, and must stop immediately!

He has not acquired a fortune; the fortune has acquired him. -- Bion

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