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SCO Wants $699 for Linux Systems

walterbyrd quotes: "'We believe it is necessary for Linux customers to properly license SCO's IP if they are running Linux 2.4 kernel and later versions for commercial purposes. The license insures that customers can continue their use of binary deployments of Linux without violating SCO's intellectual property rights.' SCO will be offering an introductory license price of $699 for a single CPU system through October 15th, 2003." Update: 08/05 18:24 GMT by M : After October 15, SCO says they'll want $1399. Better buy now!

14 of 1,659 comments (clear)

  1. Investors ... by Arthaed · · Score: 5, Informative

    What is absolutely unbelievable to me is that investors are accepting and banking on SCO's FUD tactic. Check out SCO's stock. And now with this announcement if the trend continues, investors may lean even more towards SCO (although, I am not sure why). Unbelievably insane.

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    Unique signatures are rare.
    1. Re:Investors ... by Slashdolt · · Score: 5, Informative

      ...And the SCO execs are selling their stock as fast as they can, though trying to make it appear that they are simply "getting a good deal".

      http://www.quicken.com/investments/insider/?p=SC OX &tag=1

      Certainly, their counter-argument is always something like, "Well, we've been planning to sell for quite some time now..." But geesh! Options aside, it appears that some of these execs (V.P.'s) are dumping what they already have.

      In that sense, it makes perfect sense. Get your stock price up as high as you can, and then sell as much as you can before everyone else catches on. Claim that you own all the IP in the world, and as long as there are others dumb enough to believe you, they'll keep your stock price high. Do some fancy accounting to make it appear as though you're making money, when all you're really doing is shifting income. By the time it all shakes out, you'll have sold half of your stock anyway, and you'll be rich even though the company eventually goes into bankruptcy.

      As you said, however, WTF is going through the minds of the people that are buying long-term? Eventual IBM buyout? Maybe.

      --
      Slashdolt

  2. *sigh* SCO killing Linux in my co. by Ummagumma · · Score: 4, Informative

    I was talking to my boss about putting a linux file server in here, and was making decent headway recently. Now, somehow he heard of this SCO BS, and hes got cold(er) feet. My angle was the cost savings, but now thats gone, so no linux here for a while...

    --
    "The natural progress of things is for liberty to yield and government to gain ground." - Thomas Jefferson
    1. Re:*sigh* SCO killing Linux in my co. by 1s44c · · Score: 5, Informative


      There is always FreeBSD, OpenBSD, and NetBSD.

    2. Re:*sigh* SCO killing Linux in my co. by DavidinAla · · Score: 5, Informative

      Assuming that SCO loses this battle, I doubt there will be much left of the company to go after. Of course, it might be interesting for you to file suit NOW, even if you don't expect to win any substantial monetary damages. (And if you were to win, your subsequent damages could continue to be added to the total later.) The PR for your company would be worth something all by itself, because the news coverage in your local area could let companies see you as something as a leader among Linux consultants.

  3. Re:At least now we know what their business model by mackman · · Score: 4, Informative

    Because their supposed intellectual property was added during the 2.4 development cycle. I suspect they will also apply this to 2.6 when there's enough deployment to make it worth money.

  4. Give em a call! by SoCalChris · · Score: 4, Informative

    From the press release...

    Linux users who are interested in additional information or purchasing an IP License for Linux should contact their local SCO sales representative or call SCO at 1-800-726-8649 or visit our web site

  5. My Experiences... by The+Slashdolt · · Score: 4, Informative

    CTO: We would like to remove all linux machines from our corporate network, please do this now.
    Me: But SCO has shown no proof that any code exists within the linux kernel
    CTO: After talking to the CEO, we would like you to put up any money that may be required if SCO were to win the case and name us in a lawsuit, are you willing to do this?
    Me: um, no...
    CTO: OK then, when you find someone willing to defend us legally for our technical decisions, remove linux from all corporate machines.

    at least they didn't decide to just purchase an SCO license. Which is better?

    --
    mp3's are only for those with bad memories
  6. I got my license for free by yamla · · Score: 4, Informative

    SCO licensed me all their IPs for free. Sure, they are willing to license them to you for $699 but why not just accept their free offer? Go here and download the linux kernel and rest easy. It's not like SCO is unaware they are still willing to license the kernel under the GPL, I told them a couple of weeks back.

    --

    Oceania has always been at war with Eastasia.
  7. Re:Too much crack! by ratamacue · · Score: 5, Informative

    This is NOT capitalism in action. Capitalism, or free market economics, is based on (and defined by) voluntary association. Nobody is forced to produce, and nobody is forced to consume -- people are free to produce and consume on their own terms, as long as they do so voluntarily. Capitalism is the absence of force.

    Most people don't realize that IP does NOT fit into this model. IP -- the notion that ideas can be property -- is a concept invented and implemented entirely by government. IP requires an initiation of force, because it would never come about voluntarily, as capitalism does. Because IP introduces force into the market, IP is NOT a product of (or aid to) capitalism.

    SCO intends to use force to accomplish their goals, not voluntary association. This is not capitalism at work; this is simply another exploit of an overly complex, ambiguous system of law.

  8. Re:Too much crack! by booch · · Score: 4, Informative
    Think about it. XP for 1 CPU license? $199 Guess SCO doesn't believe in linux for the desktop...
    Actually, SCO is charging $199 for desktop Linux clients. See their FAQ, near the bottom.
    --
    Software sucks. Open Source sucks less.
  9. Mec's notes from the teleconference by nedwidek · · Score: 4, Informative

    Notes on SCO Conference Call, 2003-08-05
    Michael Elizabeth Chastain

    Copyright 2003, Michael Elizabeth Chastain.
    Permission granted to copy and reproduce in any medium.

    2003-08-05T14:01:59-0400

    800-238-9007 / 274040 / The SCO Group
    Called in. There is a queue to get to an operator.

    2003-08-05T14:06:16-0400

    Opening remarks, Blake Stowell.
    Stowell: Today, McBride and Sontag.

    2003-08-05T14:06:56-0400

    McBride:
    Yesterday, SCO filed a legal action against the SCO Group ...
    Purpose of this call is to comment on these actions.
    Red Hat's lawsuit confirms what we have been saying all along:
    Linux developers are unable/unwilling to screen code.
    Red Hat is selling Linux that contains verbatim / obfuscated code
    from System 5.
    Red Hat is selling Linux that contains derivative code ...
    Some of those companies (IBM / Sequent) have had their licenses terminated.

    Red Hat claims we have not shown examples of infringing code.
    This claim is simply not true ... viewing center in Linden, Utah.
    Red Hat is apparently trying to pretend that no problem exists.

    Red Hat claims that SCO is at fault for its loss of recent Linux business.
    We suggest that Red Hat has adopted a faulty business model. ... new risk factor disclosure in SEC statement ...
    Quotes from GPL Section 7, distributors may need to stop distributing.
    It has no control to prevent infringing code from going into Linux.
    If infringing code goes in, then Red Hat must stop shipping.
    This is the problem with Red Hat's business model.

    Red Hat has established $1 million fund.
    SCO is not suing developers, just their employers.
    We suggest that Red Hat needs to increase the size of the fund.
    Over 2.5 million servers running linux kernel 2.4.

    Red Hat thinks that SCO should show them every line of infringing code.
    Red Hat thinks that they can ... just remove the infringing code.

    What is at issue is more than SCO and Red Hat.
    What is at issue is intellectual property rights in the age of the Internet.
    "don't ask, don't tell" policy. ... important debate ...
    proprietary or communal property according to Richard Stallman's vision.

    Rolling out licenses to run SCO IP in binary form only.
    Because the SCO license authorizes run-time use only,
    customers also comply with the GPL.

    2003-08-05T14:15:00-0400

    Assemble roster for Q and A.

    #1 Lee Gomez, Wall Street Journal

    Q: Why don't you release the examples of infringement?
    A: Actually, We have been releasing them.
    Q: Are they on your web site?
    A: NUMA, RCU, are direct violations.
    Q: Do you have specific examples?
    A: We've been showing?
    Q: Publically available, to anyone?
    A: Absolutely.
    A: The minute we open it up, we can't restrict it in the future.
    A: Over 100 people under NDA.
    Q: Can you make available a list of people?
    A: I have to go back to my PR team?
    Q: Linux/open source advocates?
    A: I don't remember his name
    Chris: I don't remember his name but I can provide that to you.

    #2 David Becker, CNET

    Q: Terms of the new license?
    A: Chris, comment on that?
    Chris: single cpu, $699, October 15, after which it will climb to a higher price
    Chris: contract their SCO representative

    #3 M??? Greenmeyer, e-week

    Q: Letter about possible global resolution.
    What were you referring to?
    A: We had those discussions ... now we're going to take matters in our own hands.
    A: It's time to start marching onward again.

    #4 Michael Singer, Jupiter Media

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  10. Re:Notes from the conference call by kmac06 · · Score: 5, Informative

    Haha, way to mod him up rather than respond...thus /.ing him exactly as he didn't ask. Here is the text:

    Notes on SCO Conference Call, 2003-08-05
    Michael Elizabeth Chastain

    Copyright 2003, Michael Elizabeth Chastain.
    Permission granted to copy and reproduce in any medium.

    2003-08-05T14:01:59-0400

    800-238-9007 / 274040 / The SCO Group
    Called in. There is a queue to get to an operator.

    2003-08-05T14:06:16-0400

    Opening remarks, Blake Stowell.
    Stowell: Today, McBride and Sontag.

    2003-08-05T14:06:56-0400

    McBride:
    Yesterday, SCO filed a legal action against the SCO Group ...
    Purpose of this call is to comment on these actions.
    Red Hat's lawsuit confirms what we have been saying all along:
    Linux developers are unable/unwilling to screen code.
    Red Hat is selling Linux that contains verbatim / obfuscated code
    from System 5.
    Red Hat is selling Linux that contains derivative code ...
    Some of those companies (IBM / Sequent) have had their licenses terminated.

    Red Hat claims we have not shown examples of infringing code.
    This claim is simply not true ... viewing center in Linden, Utah.
    Red Hat is apparently trying to pretend that no problem exists.

    Red Hat claims that SCO is at fault for its loss of recent Linux business.
    We suggest that Red Hat has adopted a faulty business model. ... new risk factor disclosure in SEC statement ...
    Quotes from GPL Section 7, distributors may need to stop distributing.
    It has no control to prevent infringing code from going into Linux.
    If infringing code goes in, then Red Hat must stop shipping.
    This is the problem with Red Hat's business model.

    Red Hat has established $1 million fund.
    SCO is not suing developers, just their employers.
    We suggest that Red Hat needs to increase the size of the fund.
    Over 2.5 million servers running linux kernel 2.4.

    Red Hat thinks that SCO should show them every line of infringing code.
    Red Hat thinks that they can ... just remove the infringing code.

    What is at issue is more than SCO and Red Hat.
    What is at issue is intellectual property rights in the age of the Internet.
    "don't ask, don't tell" policy. ... important debate ...
    proprietary or communal property according to Richard Stallman's vision.

    Rolling out licenses to run SCO IP in binary form only.
    Because the SCO license authorizes run-time use only,
    customers also comply with the GPL.

    2003-08-05T14:15:00-0400

    Assemble roster for Q and A.

    #1 Lee Gomez, Wall Street Journal

    Q: Why don't you release the examples of infringement?
    A: Actually, We have been releasing them.
    Q: Are they on your web site?
    A: NUMA, RCU, are direct violations.
    Q: Do you have specific examples?
    A: We've been showing?
    Q: Publically available, to anyone?
    A: Absolutely.
    A: The minute we open it up, we can't restrict it in the future.
    A: Over 100 people under NDA.
    Q: Can you make available a list of people?
    A: I have to go back to my PR team?
    Q: Linux/open source advocates?
    A: I don't remember his name
    Chris: I don't remember his name but I can provide that to you.

    #2 David Becker, CNET

    Q: Terms of the new license?
    A: Chris, comment on that?
    Chris: single cpu, $699, October 15, after which it will climb to a higher price
    Chris: contract their SCO representative

    #3 M??? Greenmeyer, e-week

    Q: Letter about possible global resolution.
    What were you referring to?
    A: We had those discussions ... now we're going to t

  11. Great quote but... by Phat_Tony · · Score: 5, Informative

    Great quote, but doesn't anyone site sources anymore? Sheesh! Isn't that just plagiarism?

    "Capitalism is the uneven distribution of wealth, and socialism the even distribution of poverty."

    Winston S. Churchill

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