LinuxOne Continued Complications
Derek Simkowiak writes "After I informed a potential IPO underwriter about LinuxOne, Inc., they threatened to sue me. What happened after that was even more disappointing". This is an interesting exchange of opinions, facts, threats, and retractions. I highly recommend anyone interested in the future of Linux and Business read this article.
The "threatening legal letter" from the Hotmail account appears to be an amateurish fake. I would be very surprised if it turned out to have been sent by a real lawyer. Notice also that when you send threatening letters through e-mail, you don't need real legal letterhead to print them on.
Policing by competitors isnt right. The SEC is charged with protection of US investors from fraud. You should take it up with them, as should
everyone else who is concerned and has hard evidence.
I asked a securities analyst what he would tell a client about this one; here's what he told me. Looks surprisingly positive in the circumstances:
The value of LinuxOne's business is inestimable. The company has made an immeasurable contribution to the open source software, and can expect copious intangible rewards for doing so. The CEO has no small degree of experience as a tech-businessman, and will manage the company with his usual degree of skill for its entire future. Investors can look forward to profits of anything up to 500% more than the company is making now. This is an IPO which the investment community should be falling over each other to learn about.
A posse has to be organized not just thrown together. As LinuxOne could be a blemish to the OpenSource community, I think we do need to respond to the LinuxOne issue.
But please, I beg people, an organized well thought out plan with good leadership should be the correct way to handle this instead of getting out the torches and pitchforks and storming Frankensteins castle.
I'll reserve my opinions about LinuxOne and fall back on Otto's Rule of Life #4:
"Never attribute to malice that which can be adequately explained by stupidity."
(Note: this is not original, as explained by Otto's Rule of Life #2: "If you have to, steal it.")
:-)
---
- Give a man a fire and he's warm for a day, but set him on fire and he's warm for the rest of his life.
But seriously, after reading the previous poor reviews. of LinuxOne and this mans story I have to wonder if its just a bunch of MBAs, and their MSCE friend who "saw that Leenux thing" and the RedHat IPO, who thought "Linux=Money".
This is a sad state of affairs, but I'm reminded of other fly by night companies that I have run across, such as one company who wanted to get content from a magazine that my company publishes. After finding out that they use a redundant array of iMACs as their web servers (no, I'm not kidding) we turned them down.
The best way to kill these companies is just to ignore them, they only live on hype and MBAs who want to IPO real quick to make money. If no one buys their stock, they shrivel up and die after their initial investment dries up.
Let them try to sue us then... :)
I believe all this nonsense will reach a point where all authorities will eventually see that it's useless trying to stop all of Slashdot mirroring cryptographic source code.
Do I have hard evidence that this is their intent? No. Do I have any evidence at all? I have the evidence we've all got that LinuxOne is a rip-off. The RPM files speak for themselves, the documentation is a rip-off, the SEC filing is a clone of Red Hat's, there's nothing "value added" there at all, the ticker name is a blatant mis-use of the Linux name (and -may- fall afoul of Linus Torvald's trademark) and (as Bruce Perens has pointed out), some of their alleged financing has come from a corner store. Sorry, but most corner stores don't have $500,000 in the till, even if they had a till large enough.
It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
This really upsets me. First off LinuxOne is not really the sort of positive culture we are looking to help promote Linux as an industrial strength OS, also with their history of "shadiness" it give the Linux community a black eye.
Some say, any press is ggood press, but in this case I think Linux could do without the association with LinuxOne. With the statement above, (from a Hotmail account, feel the professionalism), the lawyer references lies which I would question which party is not being up front. The whole LinuxOne mess is going to dammage the Linux effort as a whole if it doesn't go away soon.
We don't need firms with reputations as poor as LinuxOne waving the opensource flag.
Never knock on Death's door:
More race stuff in one place,
than any one place on the net.
This whole LinuxOne deal has gone beyond shocking to the point where it's just weird. To me it seems there's allot more going on than just what we've heard. A lawyer writing from a Hotmail account just screams of a prank (and not a very good one at that). I'm also a bit confused by Derek Simkowiak's stated intent to write "to clear up the nasty reputation they've received on the Internet" since he never actually explains how he intended to do so. This just seems awfully questionable since some key info is also not provided (i.e. the name of the investment firm he wrote). I'll wait until I hear some independent info before I believe this one.
However regarding LinuxOne, I wouldn't' be shocked if the whole LinuxOne thing turns out to be a bizarre prank or something more than just a ploy to release an IPO and make some bucks, it just seems that there is something else there. Not to say it shouldn't be watched closely.
Here are some interesting facts about LinuxOne and their distribution. Read them and see what you can conclude : 1. I've been trying to download a copy of this distribution for a couple of days at extremely different moments of the day (actually I was hammering on their site every half an hour). I have a very reliable connection to the internet (500kB/s to VAResearch, 70kB/s to SuSE's ftp, another 300kB/s to cdrom.com). Each end every attempt failed with a "there are too many users" mesage. 2. the only way of usage they support (at least in the web page) is from Windows. IMHO - why would I have (or want) to buy Windows in order to run Linux ? 3. Excerpt from their FAQ (hilarious I would say): Q: Can I acces the Internet ?Certainly. A : To access the Internet, return to Windows because the Lite version is built on top of Windows. As some would say : I rest my case.
According to the warning letter, LinuxOne's lawyer uses a hotmail account. Sounds like a pretty prestigious law firm.
The letter doesn't even look like a letter written by a lawyer. For example when does a lawyer call him/herself a lawyer and not an attorney? I, unfortunately, have received a "cease and decist" letter from a lawyer at one point, and this looks nothing like what I received. The one I received gave specific directions on what they wanted me to do, and legal specifics of what they were accusing me of doing. Maybe you poor folks who have been involved with the DeCSS stuff can comment on your legal letters? This one talks about "lies you have been spreading over the internet". Last I heard, lying on the 'net was legal.
Btw, I'm a hot blonde, 6'2", 36-24-36... *grin*
Derek mentions in his letters to LinuxOne et al that telneting to www.linuxone.net resulted in a "welcome to Red Hat" type message. They've fixed that now (it claims "LinuxOne release 1.2" now) but they apparently don't even know how to hack the Apache code so that it too doesn't claim "Apache/1.3.6 (Unix) (Red Hat/Linux)".
Try it yourself...
"All truth passes through three stages: first, it is ridiculed; next it is violently attacked; finally, it is held to be self-evident."
What bothers me the most about the LinuxOne distrobution, is that they blatently *LIE* on their web page regarding the nature of their product. Over and over again, they claim to have developed 'LinuxOne OS', and how it includes all of the capabilities, etc..
I *TRUELY* hope they end up with some software in their distro with a BSD licence, so someone can sue the pants off of the company..
-- I'm the root of all that's evil, but you can call me cookie..
Try this! That 530 message in not a real 530 message. They have posted it to fool you. FTP to ...
140.174.127.95 (the site listed on their webpage).
try Anonymous login. first you get back.
530-There are too many users
but next you get back a real 530 message
530 Login Incorrect
I think linuxone does not want anyone to download linuxone and make everyone think lots of people are downloading it
Remove the spam reference to email
http://www.fool.com/portfolios/rulemaker/2000/rule maker000106.htm
Rob Landley didn't seem to have too many positive things to say about them. The article above is an interesting read. They go into a little more detail about the background of the founder(s).
Not that I have anything against Linux and business, but the two don't really mix very very (at least in the traditional business model). I mean, business is all about competition, and Linux is all about cooperation. However, if Linux DOES succeed (in the marketplace), then it may very well change the way people think about business in general.
One of the concepts that LinuxOne has apparently not managed to grasp yet is that you can't isolate yourself from the Linux community and still expect to succeed. This does work in the traditional business model where competition is the rule, but not in a community founded on the principles of cooperation and sharing ideas openly.
I have no doubt that many investors will get burnt by LinuxOne and related scams, but that is just because they are ignorant of the 'way Linux works'. These investors probably deserve to lose their money because they did not spend the time researching the company's credentials. When they lose their money, however, they will learn a valuable but harsh lesson.
Why would a potential underwriter share the information about the complaint *with the company*? If I'd given him permission to share my name with colleagues, I would *NOT* expect him to share it with the company under suspicion, but rather, with other people who might be affected if the suspicions were correct.
Am I just crazy?
My blog: http://www.seebs.net/log/ --- My iPhone/iPad app: http://www.seebs.net/seebsfrac/
I smell lots of $$$. How? First of all, it took these guys age to figure out that they had to edit /etc/issue to make their red hat box say linuxone whatever. I could have cashed in on this, by telling them how, and having them pay me. As everyone knows, their webserver still says redhat, we can cash in on this too. Hey, how about we modify apache for you to say linux one for only $500. They kludged the ftp server to give message that the server is full. But it is obvious, heh, we can hack your ftp fake message to appear more authentic for only $5000. These guys are porting windows programs to linux and stuff, they said so. In order to do this, they need developers, Heh, why don't we code for them. I will port notepad.exe and calc.exe, I will leave clock.exe and paintbrush.exe for you. This is money making opportunity people!
------ Curiosity killed the cat. {satisfaction brought it back | it didn't die ignorant | lack of it is killing mankind
The same rules that make Linux free and available to people who will promote it are the same rules that allow people to exploit it. Is it wrong? It sure is. But there will *always* be people who exploit a good thing for their own gain. Let the players take care of LinuxOne and let us move on already. There's too much good stuff going on with Linux to waste energy swatting away the flies.
Paul
Actually, I agree with Alan. With all the bickering using words such as "Fraud", "IPO, etc, the SEC really is the only organization that has a possibility of affecting the outcome of this, whichever way it goes.
For one, THERE ISN'T A MATTER BETWEEN LINUXONE, ITS INVESTORS AND COMPETITORS. The investors don't seem to have any problems, as they've given their money. They can divest themselves at anytime. Their competitors don't seem to have any problems. Is there a link on Redhat's homepage that says "Go here to see how we feel about LinuxOne?" No. If (and I'll only say if) LinuxOne is as half-assed as everyone here hopes they are, then their competitors have nothing to fear... They can sit quietly, smirk, and laugh at people who get burned.
This is an issue between the Linux community that does not want to see LinuxOne IPO and no one else. LinuxOne seemed to have been looking the other way until they finally got egged on. I've said it before I'll say it again. The GPL allows what they're doing. That's why I don't particularly like that license, but apparently all of you did, and this is exactly what it gets you. But you are all supposed to be coding for the joy of coding and not care about such things as money...
I believe in all that American stuff, like "innocent until proven guilty", etc, and feel that they should be allowed to proceed. Sure, they can have their IPO... maybe they'll raise another $100 million on a second round offering. And maybe they'll do something that hadn't been done before. They haven't violated the GPL... They may seem a little bit shady, but give them a chance.
A quick search from www.adanet.org nets:
MICHAEL J. MORRISON
1995 Ridgeview Dr.
Reno, Nevada
(Washoe County)
ADMITTED: 1976
LAW-SCHOOL: McGeorge School of Law (J.D.)
COLLEGE: United States Air Force Academy (B.S.)
BORN: 1945
ISLN: 902352344
The IPO was filed in Nevada was it not? Seems to me that this could be a legit lawyer.
URL: Abanet link to Mr. Morrison's Info
Also of interest is the Business Address cited in the LinuxOne S-1/A:
BUSINESS ADDRESS:
STREET1: 1495 RIDGEVIEW DR
STREET2: SUITE 220
CITY: RENO
STATE: NV
ZIP: 89509
PHONE: 7758276300
URL: FreeEDGAR S-1/A Filing for LinuxOne, Inc.
Conclusion. This e-mail was most likely sent by a real lawyer working for LinuxOne. Unless, of course, you want to get really paranoid and say that they saw the name on the building while renting their fake business office and decided to steal it for harassing honest, hardworking netizens...
Read the S-1/A a little further down and find:
With Copies To:
Michael J. Morrison, Esq.
1495 Ridgeview Drive, Suite 220
Reno, Nevada 89509
Telephone: (775) 827-6300
My guess is they had a real lawyer involved with the filing of their IPO material.
Nuf Said...
Nothing Simple Is Ever Easy
Their web page lists their FTP server as residing at IP 140.174.127.95.. However, if you finger ftp.linuxone.net, it says the IP is 216.101.248.93... Four directories, /bin, /etc, /lib, and /pub. /lib is the only one with any files in it. Netcraft reports no information on this ftp box, as port 80 is shut off.
Uh, read it again. He was pulling your leg so hard it came off in his hands.
...phil
...phil
"For a list of the ways which technology has failed to improve our quality of life, press 3."
They seem to be working on at least modifying some of the messages for the default installation of Apache:
http://140.174.127.44/
Another thing. Mr. Chiou is using Windoze, acording to queso. (How did I found out the IP address for Mr. Chiou's computer? It's a simple matter of searching thru all the records for their DNS server, which btw are a very few)
I would thought that a pre-IPO company would have thousands of computers (well, hundred maybe) available for testing, programming, sales, management, etc. But the DNS only shows 25 records.
Seeya!
Signatures are supposed to be funny?
That quote comes from the 5 Jan 2000 10:01:22 -0800 email Robert Philips wrote to Derek.
Being a recipient of the famous email Red Hat sent out to contributors to invite them to participate in the RHAT IPO, I don't recall any promise made that we would actually receive stock.
Can anyone provide actual evidence of such a promise, or is this just a case of Mr. Philips inflating his rhetoric to make Red Hat look bad (and, therefore, LinuxOne look better by comparison)?
Note that this could be considered "splitting hairs" by some -- I'm distinguishing Red Hat offering contributors the opportunity to purchase shares from an actual promise that they would receive shares. There's no need to accuse Red Hat of the latter, which is what Mr. Philips appears to have done, if all they did was the former. (It's like the distinction between right to free speech and the right to be heard -- the former is not equivalent to the latter.)
Practice random senselessness and act kind of beautiful.
That 530 message is not a real 530 message. They have posted it to fool you. [...] first you get back: 530-There are too many users ... but next you get back a real 530 message 530 Login incorrect
Which is just what the ftp server they're using does when there are too many users.
It first send some 530-Whatever-the-admin-puts, then a 530 Login incorrect.
This is perfectly valid according to the RFCs, as long as all but the last line have a "-" after the 530.
I wrote the server program they're using, so rest assured I know how it behaves.
It's entirely possible, though, that they set a limit of 1 user and they have that one permitted connection opened for themselves - I can't get in either.
This message is provided under the terms outlined at http://www.bero.org/terms.html
I challenge you to demonstrate that this exchange of words ever happened.
It did happen, but only inside my head.
I have no doubt that you have provided us a patent fabrication.
You are absolutely right, your deductive prowess amazes us all.
You are a shameless asshole with your own agenda of fraud to submit such a post.
You, on the other hand, are unable to spot the output of the Dilbert Zone's Performance Review Generator, despite there being at least three posts in this thread which correctly identified my original post as an almost-funny parody.
Gawd, slashdot likes to think of itself as a place for intelligent people, but is it? As a longtime resident of "trolltalk", I've recently taken to posting the most extraordinary rubbish on threads, and you can guarantee that at least one person (usually more) will be taken in. This wasn't even meant to be a troll, just a joke, but it ended up pulling in at least five sincere responses (including two rather angry ones -- how smart you all must feel)
Particular kudos must go to the moderators who scored (4, Funny) to a line-by-line exegesis of a joke which only received (3, Funny), albeit that it also received (1, Interesting) from another goat.
Do yourselves a favour, lads. Don't ever invest, in anything. Or do me a favour and check out my IPO Prospectus for the Brooklyn Bridge.
jsm
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"History doesn't repeat itself, but it does rhyme." Mark Twain
Nothing sent through a Hotmail account could remotely be considered a legal document. I would have ignored this particular communication; acknowledging. And I would NEVER communicate with a lawyer without retaining one of my own; that struck me as particularly suicidal.
Look, some jerk-weed put a brand right on his chest. He looks like he's owned like a horse or cow, instead of the free-wheeling, herring-eating flightless bird I once knew.
At least they got a better web designer for their new page. It doesn't look like a 5 yr old designed it anymore.
--Somewhere there is a village missing an idiot.
- Mailed from a Hotmail account.
- No contact information, phone, or address for the lawyer.
- There is no such thing as "civil prosecution". There's criminal prosecution and civil litigation.
So it's probably a bluff.I just ran a Dun and Bradstreet report on LinuxOne. I highly recommend this to investors.
As of January 10, 2000, LinuxOne has 10 employees, including the three officers, and 2500 square feet of rented office space. This is way too early for a full-scale IPO. Usually, at this stage, you go for venture capital funding. Or you make some profits and reinvest. They don't claim to have any unique intellectual property that makes them valuable; they're a me-too company. This is not good.
I've received threats twice in the past when I exposed various scams. My usual response is "I am represented by (name of attorney). Send them the paperwork." Nobody ever did, although one bozo made a big deal of calling me up to ask for my attorney's name and address.
Advice to people who expose scams: follow the Associated Press Libel Manual, buy a liability umbrella policy, and don't worry too much. The last thing most scammers want is a real libel suit, because you get to do discovery on them, examine their records, and question their people, creating a public record of the inner details of the scam.
As it is, anyone who actually thinks your company is anything other than a fraud is a gullible moron. Prove me wrong. I'd love it, actually, to see a company put serious improvements (hopefully GPLd) into Linux, but all proof points to nothing ever coming out of LinuxOne except lawsuits.
The complex contains four connected buildings, A through D. Outside Building C, there are the usual business directory signs. Suite 250 is listed as "Pacific Microelectronics" and as "NetUSA". (No surprise there; these two companies are the previous companies of the founder of LinuxOne, according to Dun and Bradstreet.) There's no mention of LinuxOne. On the lobby directory, we see the same two names, but this time there's a post-it note with "LinuxOne" glued to the NetUsa sign.
Upstairs, at suite 250, there's a little office with "Pacific Microelectronics" on the glass door. A big "LinuxOne" banner hangs on the back wall. There's a receptionist desk but nobody sitting at it. All the offices have glass fronts, and there appear to be a few adjacent offices belonging to the company. One has a nice fish tank. The office space is consistent with the headcount of 10 previously reported. Unclear how much of the operation is LinuxOne vs. NetUSA.
So that's LinuxOne. Now how much were they claiming the company was worth in the IPO?
Use 078-05-1120. This was a number printed on millions of demonstration billfold inserts. The Social Security Administration has retired it permenantly. For more info, look here.
...phil
...phil
"For a list of the ways which technology has failed to improve our quality of life, press 3."
I think that's a common trick - put competitor's names in the meta tags.
Wrong.
Try ftp://140.174.127.95/pub/LinuxOne/Source/.
Glückwünsche, haben Sie Slashdot ermordet, indem Sie zum korporativen Druck beugten und Subskriptionen einlei
Pacific Micro is one of the CEO's companies, supposedly the one that was to do the Linux-Mac stuff... Apparently even won a contract from "Steve Jobs" (quotes because wouldn't you win it from Apple??)
Open Source. Closed Minds. We are Slashdot.
FYI: It appears that Capital West is underwriting LinuxOne's IPO.
Here's some info:
http://www.hoovers.com/co/ capsule/6/0,2163,61366,00.html