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SCO Sues IBM for Sharing Secrets with Unix and Linux

bstadil writes "The information is still sparse but the expected lawsuits from SCO over Unix/Linux patent infringements has been filed." SCO is asking for a billion dollars. News.com and Forbes are also covering the story.

9 of 808 comments (clear)

  1. The solution is very very simple. by Soko · · Score: 4, Informative

    SCO has a market cap of $25.68 Million. IBM could buy them for $100Million and save %90. Or RedHat maybe.

    Actually, someone with a clue should buy them now before, ummm, someone with an interest in seeing Free Software set significantly back figures out that the UNIX IP is pretty much a sitting duck...

    Soko

    --
    "Depression is merely anger without enthusiasm." - Anonymous
  2. The Lawsuit by big_groo · · Score: 5, Informative

    (kind of ontopic) In addition to the groups organized to freely redistribute systems built around the Networking Release 2 tape, a company, Berkeley Software Design, Incorporated (BSDI), was formed to develop and distribute a commercially supported version of the code. (More information about BSDI can be found at http://www.bsdi.com.) Like the other groups, they started by adding the six missing files that Bill Jolitz had written for his 386/BSD release. BSDI began selling their system including both source and binaries in January 1992 for $995. They began running advertisements touting their 99% discount over the price charged for System V source plus binary systems. Interested readers were told to call 1-800-ITS-Unix. Shortly after BSDI began their sales campaign, they received a letter from Unix System Laboratories (USL) (a mostly-owned subsidiary of AT&T spun off to develop and sell Unix). The letter demanded that they stop promoting their product as Unix and in particular that they stop using the deceptive phone number. Although the phone number was promptly dropped and the advertisements changed to explain that the product was not Unix, USL was still unhappy and filed suit to enjoin BSDI from selling their product. The suit alleged that the BSDI product contained proprietary USL code and trade secrets. USL sought to get an injunction to halt BSDI's sales until the lawsuit was resolved, claiming that they would suffer irreparable harm from the loss of their trade secrets if the BSDI distributions continued. At the preliminary hearing for the injunction, BSDI contended that they were simply using the sources being freely distributed by the University of California plus six additional files. They were willing to discuss the content of any of the six added files, but did not believe that they should be held responsible for the files being distributed by the University of California. The judge agreed with BSDI's argument and told USL that they would have to restate their complaint based solely on the six files or he would dismiss it. Recognizing that they would have a hard time making a case from just the six files, USL decided to refile the suit against both BSDI and the University of California. As before, USL requested an injunction on the shipping of Networking Release 2 from the University and on the BSDI products. With the impending injunction hearing just a few short weeks away, preparation began in earnest. All the members of the CSRG were deposed as were nearly everyone employed at BSDI. Briefs, counter-briefs, and counter-counter-briefs flew back and forth between the lawyers. Keith Bostic and I personally had to write several hundred pages of material that found its way into various briefs. In December 1992, Dickinson R. Debevoise, a United States District Judge in New Jersey, heard the arguments for the injunction. Although judges usually rule on injunction requests immediately, he decided to take it under advisement. On a Friday about six weeks later, he issued a forty-page opinion in which he denied the injunction and threw out all but two of the complaints. The remaining two complaints were narrowed to recent copyrights and the possibility of the loss of trade secrets. He also suggested that the matter should be heard in a state court system before being heard in the federal court system. The University of California took the hint and rushed into California state court the following Monday morning with a counter-suit against USL. By filing first in California, the University had established the locale of any further state court action. Constitutional law requires all state filing to be done in a single state to prevent a litigant with deep pockets from bleeding an opponent dry by filing fifty cases against them in every state. The result was that if USL wanted to take any action against the University in state courts, they would be forced to do so in California rather than in their home state of New Jersey. The University's suit claimed that USL had failed in their obligation to provide due credit to the University for the use of BSD code in System V as required by the license that they had signed with the University. If the claim were found to be valid, the University asked that USL be forced to reprint all their documentation with the appropriate due credit added, to notify all their licensees of their oversight, and to run full-page advertisements in major publications such as The Wall Street Journal and Fortune magazine notifying the business world of their inadvertent oversight. Soon after the filing in state court, USL was bought from AT&T by Novell. The CEO of Novell, Ray Noorda, stated publicly that he would rather compete in the marketplace than in court. By the summer of 1993, settlement talks had started. Unfortunately, the two sides had dug in so deep that the talks proceed slowly. With some further prodding by Ray Noorda on the USL side, many of the sticking points were removed and a settlement was finally reached in January 1994. The result was that three files were removed from the 18,000 that made up Networking Release 2, and a number of minor changes were made to other files. In addition, the University agreed to add USL copyrights to about 70 files, although those files continued to be freely redistributed. 4.4BSD The newly blessed release was called 4.4BSD-Lite and was released in June 1994 under terms identical to those used for the Networking releases. Specifically, the terms allow free redistribution in source and binary form subject only to the constraint that the University copyrights remain intact and that the University receive credit when others use the code. Simultaneously, the complete system was released as 4.4BSD-Encumbered, which still required recipients to have a USL source license. The lawsuit settlement also stipulated that USL would not sue any organization using 4.4BSD-Lite as the base for their system. So, all the BSD groups that were doing releases at that time, BSDI, NetBSD, and FreeBSD, had to restart their code base with the 4.4BSD-Lite sources into which they then merged their enhancements and improvements. While this reintegration caused a short-term delay in the development of the various BSD systems, it was a blessing in disguise since it forced all the divergent groups to resynchronize with the three years of development that had occurred at the CSRG since the release of Networking Release 2.

  3. Re:IBM -- cross-license or die by fw3 · · Score: 5, Informative
    That was my 2nd thought "what are they thinking? the counter suit could bury them"

    My first thougth was "what idiot suit at SCO thinks they can make a case for AIX being SYSV-derived?"

    The logic(sic) they are asserting seems to be: AIX is based on SYSV that SCO acquired from AT&T, and that IBM's moved those ideas into Linux.

    Nice fantasy. AIX is based on the Mach microkernel from CMU, which in turn is BSD-derived. Even at that it is very much re-implemented, using such intersting magic as an O-O system configuration database, and the first widely available journalling filesystem for a *nix.

    People think of AIX as being SYSV because it implements a SYSV *interface*. IBM is all about standards and AIX achieved System-V (and later versions) standard compliance *and* BSD compliance wherever that did not conflict.

    So no, SCO hasn't got a leg to stand on on this aspect. I wish them luck they are toing to need it.

    --
    Linux is Linux, if One need clarify their dist: <Dist>/GNU Linux
    bsds are of course just BSD
  4. Unix and colleges by Bruce+Perens · · Score: 4, Informative
    On the NDA issue: ATT licensed the source code of Unix to colleges from the early 1970's through the late 1980's, and I think this practice has been continued until the present. The source was available for perusal by software researchers at universities, and to very many students.

    Bruce

  5. Re:This is the end of SCO, for sure. by geomon · · Score: 4, Informative

    What's really surprising is that it appears SCO believes IBM is run by a pack of idiots. Granted, they have made some rather major strategic mistakes in the past, but I can't think of a time when they ran afoul with intellectual property. As has been amply noted in earlier, IBM is one, if not the leader, of computer technology intellectual property. They have been for decades.

    Taking that as a fact, who at IBM, and in the right mind, would allow someone to openly walk out of the corporate front doors with IP and give it away to a bunch of libertarian code monkeys? I work for a company whose second line of business is IP, and I can tell you that I would not have been able to publicly disseminate corporate business secrets without repercussions. My rogue initiative would have lasted maybe two or three weeks until the company got wind of what I was doing and then I would have been shut down, fired, and sued into oblivion.

    Why would IBM's IP lawyers let their engineers disclose anyone's secrets, let alone their own, without getting the forms filled out correctly? That behavior just doesn't make sense for a company so steeped in a bureaucratic corporate culture.

    --
    "Rocky Rococo, at your cervix!"
  6. Re:This is the end of SCO, for sure. by refactored · · Score: 5, Informative
    Thanks Bruce, you have given us direction for our, umm, intense dislike. Canopy Group.

    Ah, so friend Google, who are the the Canopy Group? Aha. Ray Noorda. http://www.canopy.com

    Ok, so here is some "blah" from their web site....

    Canopy Group Overview :: Canopy Group has been categorized as a technology accelerator and a dynamic operating company. Funding and influencing emerging technologies and then providing shareable management resources across its portfolio of companies is what Canopy Group does best. Originally founded in 1995, Canopy Group continues to operate by founder Ray Noorda's vision of "co-opetition," where synergies across the portfolio are optimized at the same time that each company develops independent market success.

    ie. Hit any in the Canopy Group and you hit'em all. ie. If SCO makes a sucess of this, the rest will share the "management resource".

    So who is in the Canopy Group?

    Oooh looky looky, Trolltech! So when are they going to be forced to sue for $1bn?

  7. Re:Family History by Bruce+Perens · · Score: 5, Informative
    But we have already had the ATT vs. University of California court case, back in the early 90's, and thus we know this claim doesn't apply to the BSD code base as of the end of that trial.

    Bruce

  8. Re:SCO's Microsoft Past by josh+crawley · · Score: 4, Informative

    YOu dont seem to get it. After doing the interpeter stuff for Apple, Microsoft created an 8086 Unix clone called Xenix. They decided to split IP into 2 seperate companies. Xenix mangaers went to create Santa Cruz Operations (SCO). SCO WAS a part of MS, and for a while, they owned 11% of the company. They might even now..

  9. Re:You're being unreasonable by Bruce+Perens · · Score: 4, Informative
    Now that we know that Canopy holds less than 6% of Troll, I agree that Troll isn't a target. I still think that Canopy is the real force behind this suit. They have a "distributed management" policy, in which they act as management for the companies they invest in.

    Bruce