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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.
"It's a fairly end-of-life move for the stockholders and managers of that company," said Jonathan Eunice, an Illuminata analyst. "Really what beat SCO is not any problem with what IBM did; it's what the market decided. This is a way of salvaging value out of the SCO franchise they can't get by winning in the marketplace." - Best and most accurate quote on SCO/Caldera ever imo.
Seriously tho, IBM says nothing for linux to fear but FUD itself (literally). Caldera/SCO dropped every single ball they've EVER been thrown, so much so that every thread ever started or ended here is basically a litanny of their mistakes. Sun makes UNIX, they're still alive, IBM still makes AIX, they're certainly alive, poor SCO is dead in the water so they sue.
My guess is the next thing they'll do is sell all their IP to microsoft, and microsoft will use it as a giant club against other vendors. So it's in our best interests to see them stay afloat, otherwise some other patent-abusing, money hungry group of corporate bastards with more money will have all of their "intellectual property" and will actually have the cash to use it. IBM has the cash to hold things up in court long enough to A> Have the costs of the settlement (if ever reached) be deferred by inflation and B> Have the underlying patents they're being sued for actually expire.
Plus, IBM is the former evil empire, they have no qualms whatsoever using their vast horde of defensive patents to counter sue someone into the ground.
The key to the enjoyment of pop music is to replace any instance of "love" with "C.H.U.D."
IBM probably has more technology patents than any other company on Earth (and possibly other planets, too early to tell). I'm willing to bet they can find hundreds of violations in SCO's product lines and bury them.
Either way though, you just know this is going to become a bullet point on Microsoft's next Linux FUD page ("see, use linux and you can get sued).
Finkployd
Of course, just as I post my story submission to slashdot on this, no sooner than I reload the page after submitting it when the story appears from someone else. Doh!
Seriously, though, I think I'll repeat a comment that I made in my story submission. Does anyone else think that SCO has bitten off more than they can chew? I knew that they were going to make a move, but I thought for sure they were going to pick an "easy" target, like some small Linux distributor. About as big a company as I suspected they would hit was Red Hat.
Suing IBM was a huge mistake. Or more accurately: suing IBM first was a big mistake. They should have done what other companies have, which is take on the little fish in the pond hoping some will roll over and pony up the dough, before attempting to harpoon the whale.
Not that I'm unhappy about this turn of events, mind you. IBM, which has had more experience in dealing with IP rights and patents in the little finger of one of their lawyers than SCO has in their entire company, will pound them into the dirt. The sound you are now hearing is that of the death dirge for SCO.
Karma: Frotzed (mostly due to the Frobozz Magic Karma Company)
Can IBM take over (buy) SCO, effectively cutting this lawsuit off?
I haven't read the filings yet, but it sounds as if SCO's main claim is that IBM (and perhaps others) violated their non-disclosure agreements by allowing employees who had seen the Unix source code to work on Linux. However, Linux was developed first on the Intel i386 processor family, way back in 1991, at least five years before IBM took an interest in it. Linux follows MINIX, an even earlier published-source-code system that very clearly isn't derived from Unix - its architecture was very different.
SCO claims that Linux could not have become ready for the enterprise so quickly without use of art originating in Unix. They seem to ignore the fact that hundreds of thousands of people have been educated in operating systems programming, and that very healthy communities of scientific research exist for systems design, and that most of the enterprise-ready features originated in research operating systems and only later were ported to Unix.
They claim that the Linux libraries could not have been produced without input from Unix. But these libraries are written to a printed specification called POSIX, published by the U.S. government and available to the general public. The GNU C library, and many other Linux libraries, existed long before IBM's involvement. We also had printed "man pages" for Unix available in bookstores without restrictions on implementation of the documented facilities, and shelves of published documentation on Unix in every technical bookstore.
So, I think the claims I've heard are specious, and not enforcible in court. Why, then, is SCO doing this? They want to be purchased. This is the exit strategy for their investors, Canopy Group. IBM can buy them just to shut them up. Or Microsoft can buy them to use them to FUD Linux. And Canopy Group management figures they'll play the two against each other to drive up the price. But IBM management is smart enough to poison this particular well, by bringing counter-claims against SCO.
SCO is also party to the GPL, which invalidates their patent portfolio for any of their patents that happen to have been used in a Linux system that they distributed. Under the GPL terms, if you distribute your patented practice in GPL software, you must grant a license to everyone to make use of that patent in any GPL software, for any field of use. This is why SCO's initial claim seems to be focusing on an NDA rather than patents. And of course, the fundamental patents that apply to Unix would have expired some 15 years ago.
SCO can't claim that IBM (or anyone else) was hiding the Linux development from them, since Linux source is available and is part of SCO's own Linux product. They have been distributing the source code that they claim violates their own NDA as Caldera's main product for years. So, they are going to have a very small chance of making this case work.
We in the Free Software developer community must make it clear that we will not tolerate specious intellectual property claims on our software, even if those claims are directed to a user or industrial partner rather than an individual developer. The obvious first step that would occurr to any of us would be to shun SCO - not to do business with them, not to recommend them in our jobs, etc. SCO must have known that they'd be shunned for these shenanigans, and they went ahead with them anyway. This means they're writing off their entire software and operating systems business. SCO is owned by Canopy Group, I guess those folks are writing off their other software businesses, too.
I look forward to getting a look at the court papers, and being a witness for the defense or amicus curae in these cases. I'm sure I'll be joined by a lot of you. In addition, we may have our own infringement claims to make, if the SCO filing violates the GPL terms. I doubt there will be much left of SCO at the end of this.
These folks could have been good partners. Other people in industry were, and beat Caldera and SCO in the market. Canopy Group, their venture firm, were the real managers of SCO and Caldera. Front-men like Ransom Love were not the ones making real decisions. Their business failed, and others flourished, because Canopy Group never understood how to be our partners. They've chosen to screw us one last time on the way out the door. Let's do our best to turn it back on them.
Bruce
Bruce Perens.
I'd be happy if they'd upgrade *anything* to make it not look like it did in freakin' 1989! They have to face it: Nobody (with a brand name and a company to feed) does Unix like Linux. Even *BSD, a company (depending on which one you're talking about) makes VAST strides over SCO. Sure, SCO's got uptime and a vast application library...but it's a BEAR when it comes back up, and the apps are all vertical and expensive.
I mean....here we are in 2003, and you STILL have to make sure your host hardware is compatible with SCO. How could they let this get so bad? Now they blame everyone else.
Yet, it's still better at what it does, than Windows: it doesn't stake a claim to your grandchildren's choice of operating system....and your cash...and theirs.
I started on a "Fortune" brand Unix box, but took up SCO for about a decade...I'm tellin' ya: it sucks. The management team is to blame. They charged for the Development System (cc and friends to you and me) and they even charged to ship their 'skunkware' disk, containing a lot of public domain stuff that worked FAR better than their own stuff.
I told them that charging $1100 for their source of programs and future was insane. And "They looked at me, uncomprehendingly, like cows at a passing train..."
Nobody listens when there's still time to dodge the oncoming semi.
--- For a good time mail uce@ftc.gov
We used SCO's Unix in 1990 or so to teach Unix students for a while, but after noticing that we'd had to plug in GNU software for almost everything to make it work, we finally switched to SunOS, and later to Linux. But that's not the interesting part. What is, is that Iremember the SCO's original Unix booting with the horrifying sight of Microsoft's copyrights on the Unix flavor underneath.
:-)
You might say, "What? Microsoft did Unix in the 80s? No! That's insane!".
Apparently Microsoft had been working on Unix in some respect for a while, until Bill had decided it had no future (or perhaps, just not a proprietary enough one), and (or so I infer) sold it or licensed it to the Santa Cruz Operation.
This would make for much irony if SCO won their little suit, but then Microsoft bought them to try to reassert control over what Bill once thought was irrelevant, and now clearly -is- the future.
The comments in the suit about IBMs AIX and its claimed collision with the Unix patents is pretty funny, since apparently one of the miseries of doing AIX design was going before a little review board that would judge the odds of your perfectly good code intersecting known non-IBM patents, and then making you break it until it didn't - or so goes one unfortunate's tale.
All of this is, of course, hearsay, so if you were there, just tell us what really happened, yes?
No doubt this will be modded flamebait but I have to speak my mind on this one--
Caldera/SCO is one of those companies which I have absolutely no good will towards. Sure, someone had to sue Microsoft over the antocompetitive actions against DR DOS, but Caldera didn't even really pretend that the product was a real addition to their product line. They only bought it to sue Microsoft and after they settled, they sold it to Lineo.
Then they bought SCO and became the SCO Group. BTW, this was after they were sued by their shareholders for inflating profits before Enron broke.
Since they dislike the GPL, and can't find a good way to pretend that Linux is proprietary, their business model seems to be:
1: Buy dying products
2: Sue other companies
3: Win or settle
4: Profit
5; Sell dying product line to other companies
6: Profit again
If they were ethical, I would support them.... but I can find no ethics, or any other virtues....
Lets hope this is dismissed soon..
LedgerSMB: Open source Accounting/ERP
WHO IS RAY NOORDA? I'll tell you...
.COM run-up to the peak of January/February of 2000.
Ray Noorda was the primary driving force behind the initial success of Novell. Novell was founded in 1979 as NDSI - Novell Data Systems, Inc.. It had a Motorola 68000 based network server box for MP/M and CP/M client machines, and sold everything as a high priced package.
In 1983, the VC forced a reincoporation as just "Novell", and forced Ray Noorda on the founders as "adult supervision" (the VC in question was Safeguard Scientifics).
Ray Noorda changed the business model, and the product line, targeting the newly created IBM PC as both server and client hardware.
Ray Noorda was almost singularly responsible for the success of Novell.
Ray Noorda personally intervened, after the purchase of USL, to get the USL/UCB lawsuit settled. I spent a lot of time talking to him and Mike DeFazio, then VP of the UNIX Systems Group, a legacy executive from AT&T who came with the USL purchase.
Ray Noorda encouraged an executive to move on, after he issued a statement that he didn't like, when that executive stated that Novell/USG was "de-emphasizing UNIX on the desktop". I asked "If not UnixWare, what _Novell_ Operating System will computer users be running on their desktops?" His answer was "None. They will run Windows.". Ray Noorda stormed from the room.
Ray Noorda was to Novell what Thomas Watson was to IBM. He was its strong leader, who forged a stunningly successful company from ashes and raw clay.
Novell was incredibly successful under Noorda. It's stock split 4 times from 1987 to 1992, reaching a high of almost $60 a share before the last split. The closest it's come to that after Noorda was almost $50, in the
The one really big mistake he made was the purchase of Word Perfect; he did it because he believed that Microsoft was the enemy, and he needed to match product lines against them.
The mistake was in letting the Word Perfect founders know how he valued companies, when they were looking for an exit strategy after the incredible mistake of trying to turn technical support into a profit center. To maximize their "valuation", which Noorda based on PPE - Profit Per Employee - they threw all people not essential to the operation of their base business overboard. All the R&D people working on pen computing, all the human factors and other people who were working on ensuring the product was competitive with Microsoft Word, all of the people who worked on the VMS and UNIX versions of the product. How do you raise PPE? Increase "P" or reduce the number of "E"'s. And that's what they did.
What about funding Caldera? Caldera was funded by Canopy, a VC group answerable to The Noorda Family Trust, *AFTER* Noorda left Novell, *AFTER* Caldera was a going concern, *AFTER* some of the Novell/USG engineers, so fed up with the NIH of the USL side of things, started a "skunk works" project using Linux, and Mike DeFazio, VP of Novell/USG, and dyed-in-the-wool USL, got it shut down because it risked cannibalizing the UnixWare market. Rather than let the idea die, they left Novell and formed Caldera, funded out of the pockets of the two founders: Brian Sparks, to my knowledge, sold 50 acres of family land to fund it. Noorda came in after that, with additional funding from the NFT's Canopy venture fund.
Ray Noorda would not have approved of the cancellation of the Linux project inside Novell (while it was in house, we jokingly called it "LinuxWare").
Ray Noorda had a philosophy which Novell pays lip service to today, but which they no longer really follow: coopetition.
Coopetition is a word coined by Noorda as a combination of "cooperation" and "competition". It was realized in Novell by having 2 or 3 groups working on solving the same problem, and then letting the one that produced the best solution "win", and taking that product to market.
Having a "LinuxWare" project compete with UnixWare, and may the best product win, was the *very essence* of coopetition. Ray Noorda would have approved of it greatly.
When Noorda left as president, remaining on the Board, Novell ran on for a time on inertia, with an "office of the president". But the three people who were chosen for this task lacked sufficient vision, and couldn't carry off the duties of that office in keeping with the same philosophy and corporate culture. They were bean counters, which isn't bad in itself, but they didn't know the heart and soul of Novell.
Blame Caldera, if you must; I don't think that's exactly fair: they started with a good vision, and they got an incredibly bad rap when they initially didn't release source code for some things that they *couldn't* release source code on, because they were licensed from third parties. Yeah, this stuck to them, but I believe it stuck unfairly. I don't believe the people I knew who started the company would do this.
Blame SCO, if you must; I don't think that's exactly fair, either: my first job out of college was developing and porting communications software to around 140 different UNIX platforms, DOS, Windows, Mac, VMS, CP/M, etc., etc., and by far, SCO was always easy to work with, both as an OS, and as a company, and as people. I've had a number of very long talks with Doug Michaels, over the years; some one-on-one, some with one or two people, like Esther Dyson, present, and I hold him in *very* high regard. I don't believe the people I know at SCO would do this.
Blame USL, if you must: personally, that's my chief suspect. But SCO also has Microsoft investment, Microsoft code in their OS, and Microsoft board members. There are plenty of real villains to go around, and plenty of pseudo-villains who are likely just fighting for their jobs and their investments of money, time, and self.
But don't blame Ray Noorda.
PS: Novell, if you are reading this, you can have your soul back any time you want; it was never sold, only pawned.
PPS: IBM, if you are reading this, realize that, unrelated to this case, your soul is sitting on the pawn shop shelf next to Novell's; you can reclaim it any time you want, too, by internalizing your customer-facing philosophy.
-- Terry