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IBM Countersues SCO, And More!

mr.crutch writes "Few details are available, but CNet is reporting that IBM has filed counterclaims against SCO. CNet also has an interview with Red Hat CEO Matthew Szulik..." Jizzbug writes "Thanks to the folks of K5, we can all obtain our rights to use the Linux kernel from SCO, and without paying up to SCO's extortion. If kernel.org kernels aren't safe, sco.com kernels certainly ought to be." LWN has a copy of SCO's Linux License for your perusal. Bruce Perens is speaking of the dangers of patent portfolios to open source software, notable because IBM's counterclaims include patent infringement. And finally, a company is selling SCO Check, a tool to de-SCOify your Linux system, if SCO ever presents any evidence whatsoever of infringing code in Linux. Update: 08/08 00:16 GMT by T : SCO's public response to IBM's counterclaim is short and to the point. Among other things, it says "If IBM were serious about addressing the real problems with Linux, it would offer full customer indemnification and move away from the GPL license." Given the other links in this story, perhaps SCO should go first on that count.

24 of 1,156 comments (clear)

  1. Litigate 'till CSO runs out of money? HAH! by oscast · · Score: 4, Insightful

    Considering the fact that IBM popularized the practice of litigating a company till they run out of money to fight... it shouldn't take long for this one to end.

  2. Unspecified? by phorm · · Score: 5, Insightful

    BM is seeking unspecified monetary damages and an injunction stopping SCO from shipping its software

    I'm guessing that in the end, this will be a big number, but perhaps IBM will go for a settlement that involves SCO execs, bricks, and deep water.

    Seriously, if anything this whole fiasco is probably as much good publicity for IBM as it is bad to SCO. IBM gets to lay on the smack-down, and they end up looking very much like a hero in the eyes of the linux users/developers.

    1. Re:Unspecified? by anthonyrcalgary · · Score: 4, Insightful

      I'm guessing that in the end, this will be a big number, but perhaps IBM will go for a settlement that involves SCO execs, bricks, and deep water.

      SCO's been pretty pretty careless with the libel. The damages could add up to a lot.

      Seriously, if anything this whole fiasco is probably as much good publicity for IBM as it is bad to SCO. IBM gets to lay on the smack-down, and they end up looking very much like a hero in the eyes of the linux users/developers.

      IBM has realized that karma whoring is an effective business practice. Good for them.

      --
      When someone might yell at me, it has to be OpenBSD.
  3. It's about time. by Znonymous+Coward · · Score: 4, Insightful

    We can only assume that it took IBM this long to prepare the suit because they wanted to ensure a crushing blow to the SCO extortion ring in one quick sweep.

    --

    Karma: The shiznight, mostly because I am the Drizzle.

    1. Re:It's about time. by harley_frog · · Score: 5, Insightful
      Extorion is a good choice of words. After reading Professor Moglen's paper on SCO's claim, which was posted on Slashdot last week, a well at this article and this one, I think that SCO is using a combination Mafia-like protection tactics and FUD in an effort to force companies and users that don't a warehouse of lawyers to pony up the money rather than using sound business practices to try and save their company. And now with the recent targets of the U.S. Government and TiVo, they may have just bitten off more then they can chew. I would not be at all surprised if the courts find that SCO does not have a case and that charges of extorition are filed at SCO. I just wonder if SCO's actions could fall under the RICO act.

      --
      It's all fun and games until someone loses the key to the handcuffs.
  4. Claim to be SCO Free by QuackQuack · · Score: 5, Insightful

    All Linux distros need to do is place bright yellow sunburst stickers on their packaging claiming to be Guaranteed, 100% free of infringing SCO code, "for your piece of mind".

    SCO really can't dispute that claim without offering proof, and once they offer proof, the distro can issue a patch removing the code from the system, assuming that there really is problem code

    --
    By reading this sig, you agree to the terms of my sig license.
  5. What's not in IBM Counter claims by isn't+my+name · · Score: 3, Insightful

    According to the press reports I've read, there is no mention in IBM's counterclaim that it has the right to sell derivative software created by it. Now, it is just possible that the press reports are not the result of a careful reading of the filing, but I am surprised there is no mention of that and would be even more surprised if that were not in IBM's filing.

    Anyone know of an online copy of the filing yet?

  6. Re:Another article,SCO can't respond to the bitchs by Surak · · Score: 4, Insightful

    Before we go "Yay, GO IBM!" realize that IBMs patents are potentially as harmful to Open Source Software as they are to SCO. Fortunately, IBM pays a bit more than lip service to open source at this point, so it's not like they necessarily will use their patent repetoire against OSS, but just keep in mind that they *could*.

    On the other hand, part of my really is saying:

    "FSCK DARL MCBRIDE AND SCO! KICK 'EM WEAR IT COUNTS, IBM!"

  7. This answers the big question by burgburgburg · · Score: 4, Insightful
    We've all been wondering if this all was a "legitimate" attempt by SCO to try and get some money or if it was purely a financed FUD campaign, an attempt to muddy the OSS waters and benefit the MS and SUN, the two companies that have actually licensed stuff from SCO.

    The fact that Novell specifically, explicitly forbade SCO from revoking the AIX license, and the fact that SCO ignored this (despite knowing that they were contractually obligated to respect Novell's orders on this issue) shows that there was never an expectation that this would lead to a payout. This is all about the FUD. Case closed.

  8. Glory Hallelujah, finally some good news. by drinkypoo · · Score: 4, Insightful
    Note the goofy IBM patents. "The patents cover a data compression technique, a method of navigating among program menus using options arranged in a graphical tree, a method for verifying that an electronic message was received and a method for monitoring computing systems linked in a cluster." Of course this is no less goofy than claiming you own RCU, or that somehow IBM would have gotten it out of SCO sources. But most importantly, navigating among program menus using options arranged in a graphical tree? Everyone does that. A method for verifying that an electronic message was received? I think we've seen just about every way of doing that already. Monitoring a cluster? PUH-lease. My point here is that the prophecy has come true. As has been stated previously IBM owns a zillion patents and they don't enforce the obvious ones until someone talks a little shit, then BAM, they lay their shit down on the counter and invite someone to bring up a ruler, and would anyone else like to make a measurement?

    This is the beginning of the end for SCO. You could argue that the end began when they first made their claims, but that was just a prelude. There's no story here, of course; We go right from ONCE UPON A TIME straight to THE END. But somehow we still get a bunch of fun implied drama.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  9. Re:Big guns by DenOfEarth · · Score: 5, Insightful

    y'know, I never really thought of it this way. IBM has enough stake now in Linux that they are defending the principles it is built on. This is a serious milestone for the open source movement.

  10. Why no injunction against FUD? by rMortyH · · Score: 3, Insightful

    IBM argues in the counterclaims that SCO is prohibited from treating any code it distributed under the GPL as proprietary, and that its current plan to require payment from Linux users isn't legal.

    Why, oh why, don't they seek an injunction against SCO contacting organizations and demanding royalties while this is pending? This is a no-brainer. They have alot more than they need!

  11. Re:Big guns by Knife_Edge · · Score: 4, Insightful

    This may be a mixed blessing. When elephants dance, the mice hide.

  12. Re:Multiple Fronts . . . by tuffy · · Score: 4, Insightful
    which means a team of highly paid attorneys will argue the viability of GPL. If this makes it to court, then GPL will have its test.

    If the GPL isn't a viable license (for reasons I cannot fathom, since the copyright holder gets to determine the conditions of its copying), ownership of the code reverts to the original copyright holders. This means SCO would still have no legal right to charge money for the Linux kernel since most (all?) of the code isn't theirs to sell.

    --

    Ita erat quando hic adveni.

  13. Re:The Juggernaut by Fishstick · · Score: 3, Insightful
    Yeah, but IBM isn't using its patents against SCO's Linux distro?

    The infringing SCO software, IBM said, is its UnixWare and OpenServer operating systems, its SCO Manager remote administration tool and its Reliant HA package for letting one computer in a cluster take over if another fails.


    Hey, you stole my marbles!!

    Well, they technically aren't *your* marbles anymore because you've been giving them away to other kids. You stop telling everyone I stole your marbles, it's making me look bad. Oh, and that slingshot in your back pocket... mine.

    --

    There is much cruelty in the universe, John.
    Yeah, we seem to have the tour map.

  14. Let's Put SCO Behind Bars by MichaelCrawford · · Score: 4, Insightful

    While the lawsuits being defended by IBM and filed by Red Hat are likely to put an end to The SCO Group's menace to the Free Software community, I don't think simply putting the company out of business is likely to prevent us from being threatened this way again by other companies who are enemies to our community. I feel we need to send a stronger message.

    If we all work together, we can put the executives of the SCO Group in prison where they belong.

    If you live in the U.S., please write a letter to your state Attorney General. If you live elsewhere, please write your national or provincial law enforcement authorities. Please ask that the SCO Group be prosecuted for criminal fraud and extortion.

    It makes me very sad to write this, because I lived in Santa Cruz for fifteen years. Sam Sjogren, a close friend from Caltech, was one of SCO's first programmers, and for a little while my only friend in town after I transferred to UCSC. Many of my best friends used to work for SCO either writing code or doing tech support. I even used to sit in the company hot tub with my friends who worked there from time to time. I used to dance to the music of SCO's company band Deth Specula at parties around the town.

    Before I ever installed my first Linux distro - remember Yggdrasil Plug-n-Play? - I was a happy user of a fully-licensed copy of SCO Open Desktop on my 386.

    You wouldn't think the SCO Group of today is the same company that once had to tell its employees that they shouldn't be naked at work between 9 and 5 because they scared the visiting suits from AT&T. That's because it's not - the SCO Group got its name and intellectual property from SCO through an acquisition. I don't think any of the friends I once knew at the company are likely to still be working there. The SCO Group is in Utah. SCO was originally called The Santa Cruz Operation, a small father-and son consulting firm named for a beautiful small town between the mountains and the ocean in central California. The Santa Cruz Operation was once as much a bunch of freethinking hippies as any Linux hacker of today.

    Yes, it makes me sad. But I digress.

    It seems that SCO is asking a license fee of $699 for each Linux installation. Take a look at SCO's press release announcing the licensing program. That's just the introductory price - if we don't purchase our licenses before October 15, the price will increase to $1399.

    I have three computers that run Linux. That means SCO claims I must pay $2097 today, or $4197 if I wait until after October 15. SCO says their fee applies even to devices running embedded linux, many of which were purchased by their owners for far less than SCO's "license fee".

    My response is that SCO is guilty of criminal fraud and extortion. I didn't violate SCO's copyright or acquire their trade secrets through any illegal means, and it is fraud for them to claim that I did. It is extortion for them to tell me I must pay them money to avoid a lawsuit.

    Even if SCO's claims are true, it is not a violation of their copyright for me to possess a copy of their code. Instead, any copyright infringement was committed by the vendors who supplied me with the Linux distributions I use.

    SCO's license is actually no license at all - if it really is found that the Linux kernel contains any infringing code, the GPL forbids everyone who possesses a copy from using it at all. No one would be allowed to con

    --
    Request your free CD of my piano music.
  15. Re:We need to start planning now to buy SCO by babbage · · Score: 3, Insightful
    As was pointed out in one of yesterday's SCO stories, less than 49% of SCO stock is publically available. You can pool with people to buy up every single share of available stock -- and at the rate things will hopefully go that will be very inexpensive to do -- but even then you will not have enough share to have a controlling interest in the company.

    Cute idea though :)

  16. tactics... by Anonymous Coward · · Score: 3, Insightful

    This is sort of interesting in that I do not see IBM denying SCO's claims. They're simply limiting what SCO can do. 1) The GPL part. If IBM is successful with this claim, SCO has no rights and the suit is over. All the code in question is officially GPL. 2) The patents. If the GPL argument fails, SCO could win. The judgment would be based on damage to SCO (value of lost revenue). If IBM can demonstrate all of SCO's products violate IBM patents, those products are now worth $0. SCO has no claim to lost revenue. In fact, SCO now might owe IBM for past use of those patents. 3) Contract twist involving Novell. This is most benneficial to IBM's sales force and revenue. They need to reassure their customers AIX is still legal whilst the legal stuff plays out.

  17. CNET interviewer is stupid by Feztaa · · Score: 3, Insightful

    The interview starts off displaying this image, claiming him to be "Mad as hell and not going to take it". He looks about as mad as I would be if I won a billion dollars in the lottery while getting a blowjob from Carmen Electra. Oh yes, very mad indeed.

    Anyway, the interviewer then goes on to imply that all linux developers are really just heartless pirates, like the music downloaders on Kazaa.

    Later on, we are graced with this gem:

    "One view of Linux that's persisted over the years is that it's free. Even though that's not fully accurate, ... "

    Yes, those pesky pirates keep insisting that Linux is free! Clearly it's not, however, as RedHat is charging lots of money for it! Moron.

    "Microsoft would say the same thing.
    I have customers.

    They have customers too.
    Great."

    Wow, RedHat has customers? Microsoft too? Truly, these are men of vision. Men of unparalleled insight!

  18. SCO has replied by eric76 · · Score: 3, Insightful
    Link to SCO's reply from yahoo.com

    SCO makes it even clearer than before that they are attacking the GPL:

    We view IBM's counterclaim filing today as an effort to distract attention from its flawed Linux business model. It repeats the same unsubstantiated allegations made in Red Hat's filing earlier this week. If IBM were serious about addressing the real problems with Linux, it would offer full customer indemnification and move away from the GPL license. As the stakes continue to rise in the Linux battles, it becomes increasingly clear that the core issue is bigger than SCO (Nasdaq: SCOX - News), Red Hat, or even IBM. The core issue is about the value of intellectual property in an Internet age. In a strange alliance, IBM and the Free Software Foundation have lined up on the same side of this argument in support of the GPL. IBM urges its customers to use non- warranted, unprotected software. This software violates SCO's intellectual property rights in UNIX, and fails to give comfort to customers going forward in use of Linux. If IBM wants customers to accept the GPL risk, it should indemnify them against that risk. The continuing refusal to provide customer indemnification is IBM's truest measure of belief in its recently filed claims.

    They seem to be claiming to have been using those patents for years. In fact, all they are saying is that they have been shipping these products for years without making any claims about patents. They could have easily added the infringements later.

    SCO has shipped these products for many years, in some cases for nearly two decades, and this is the first time that IBM has ever raised an issue about patent infringement in these products.

    I don't know what the following signifies. Are they saying that IBM can't file a counterclaim that is not mentioned in their original answer to the suit?

    Furthermore, these claims were not raised in IBM's original answer.

    And, of course, even more blather:

    SCO reiterates its position that it intends to defend its intellectual property rights. SCO will remain on course to require customers to license infringing Linux implementations as a condition of further use. This is the best and clearest course for customers to minimize Linux problems.
    1. Re:SCO has replied by Crispy+Critters · · Score: 3, Insightful
      From SCO's response: If IBM wants customers to accept the GPL risk, it should indemnify them against that risk. The continuing refusal to provide customer indemnification is IBM's truest measure of belief in its recently filed claims.

      I would say this shows IBM's faith that IBM will still exist a year from now and will have to honor any contracts it makes. SCO can offer any indemnification they want to if they plan on going bankrupt is 3 months.

    2. Re:SCO has replied by Darth · · Score: 4, Insightful

      We view IBM's counterclaim filing today as an effort to distract attention from its flawed Linux business model

      You gotta love it when a company that has posted multiple million dollar losses for the last 5 years, can't find a market for their product, and admits in it's sec filings that it's current actions will alienate it from it's market and customers says IBM has a flawed business model.

      --
      Darth --
      Nil Mortifi, Sine Lucre
  19. Re:SCO Responds (mod up) by yeremein · · Score: 3, Insightful
    We view IBM's counterclaim filing today as an effort to distract attention from its flawed Linux business model
    This must be why IBM made three billion dollars last year and you lost 30 million.
    It repeats the same unsubstantiated allegations made in Red Hat's filing earlier this week.
    Ha! I think it's painfully obvious who has been making unsubstantiated allegations. The fact is, you claim Linux infringes on your IP and you haven't proven it, or even presented any evidence at all (other than doctored snippets of code taken out of context and shown under NDA)
    If IBM were serious about addressing the real problems with Linux, it would offer full customer indemnification and move away from the GPL license. As the stakes continue to rise in the Linux battles, it becomes increasingly clear that the core issue is bigger than SCO (SCOX) , Red Hat, or even IBM.
    Oh. This explains why Caldera distributed Linux under the GPL for a decade, and why their extortion^H^H^H^H^H^H^H Linux license disclaims all warranties...
    The core issue is about the value of intellectual property in an Internet age.
    And how to milk yours for all its worth while completely disregarding everyone else's.
    In a strange alliance, IBM and the Free Software Foundation have lined up on the same side of this argument in support of the GPL. IBM urges its customers to use non- warranted, unprotected software.
    The same software you sold for a decade. Or did you change your name to "The SCO Group" to deliberately try to obscure that fact?
    This software violates SCO's intellectual property rights in UNIX,
    This is highly debatable. I believe that's why you're being sued by two companies. Prove you're right and THEN collect license fees.
    and fails to give comfort to customers going forward in use of Linux. If IBM wants customers to accept the GPL risk, it should indemnify them against that risk.
    Or it should defend the GPL from parasites like SCO. I find IBM's countersuit quite comforting regarding my future use of Linux.
    The continuing refusal to provide customer indemnification is IBM's truest measure of belief in its recently filed claims.
    Oh, I see, since IBM decides to fight your false claims directly rather than wait for you to sue end-users, they must be tacitly acknowledging their flawed business plan. Whatever.
    SCO has shipped these products for many years, in some cases for nearly two decades, and this is the first time that IBM has ever raised an issue about patent infringement in these products.
    IBM and RedHat have shipped Linux 2.4 since 2000, and this is the first time SCO has ever raised an issue about copyright infringements in these products.
    Furthermore, these claims were not raised in IBM's original answer.
    But they were raised in IBM's answer to your amended claim. You started this fight. Turnabout is fair play.
    SCO reiterates its position that it intends to defend its intellectual property rights. SCO will remain on course to require customers to license infringing Linux implementations as a condition of further use.
    Translation: SCO will continue to make unsubstantiated allegations against Linux and Linux users in order to keep their stock value high long enough for the execs to sell off.
    This is the best and clearest course for customers to minimize Linux problems.
    No, that would have been to publicize your claims immediately so that they could be disproven and/or any infringing code could be removed from the kernel.
  20. Re:Just to play Devil's Advocate by qtp · · Score: 3, Insightful

    Why not charge for Linux?

    Go ahead. You are allowed to charge for Linux, and you are permitted to charge whatever you want. And so is anybody who you sell Linux to. That is what the license is about. You are not allowed to deny the rights that you were granted by the GPL to anyone to whom you subsequently distrubute the altered or unaltered GPL code. Hell, Stallman supported himself for years selling GPL software. I believe that the people who paid for it saw the value in supporting his efforts to write an extensible and full featured editor.

    If you feel yourself to be a charitable person, then by all means volunteer your time and heart to a worthy organization, perhaps a soup kitchen or a children's hospital.

    Good idea. Perhaps we can form a community dedicated to developing Operating Systems, complete with networking, productivity, records management, imaging, and other apps that would be useful for childrens and other hospitals, schools, and charities. That way they could spend thier budgets on providing care and service for those who depend on them, instead of on upgrading thier systems every time the software vendor decides it's time to milk that cow.

    The very nature of business precludes money for a piece of property.

    Incorrect.Of course if you had stated that the definition of business includes the exchange of money for a piece of property, I'd be forced to agree with you, but precludes means quite the opposite. Perhaps you made a mistake there. (In fact, I'm rather certain that you did mean to use includes, so we agree after all. Isn't this nice?!) When I have a peice of property to sell you, then we can do business. I think that you also forgot that services can be exchanged for currency as well, and it is still business, but I'll forgive that. For the time being though, you can make a copy of what property I have that I'm unwilling to sell, and as long as you have my permission (you do), and you pay for whatever materials you need to make that copy, I think thats legal as well. Just don't use that copy to screw anybody over. (Ha ha, a little humor. See, were all gentlemen here, except for the ladies, and I think we all know that you'd never dream of doing something like that.)

    It is not sacred.

    I agree with you again. Open Source software has proven to be a practical, secure, and stable alternative to software developed in secretive environments that discourage cooperative problem solving. Practical, usefull, and rapidly developed.Yes, Open Source is all of those things. But sacred? No, nothing is sacred around here. Except for respect for peoples copyright (or copyleft) and thier licensing terms. In fact, I'd be willing to bet that Open Source developers and maintainers go to greater lengths to ensure that they are respecting copyright than most others.

    Outside the tech world, linux users are hippies, just barely still democratic.

    I'm not quite sure by what you mean by that, but I thought I'd quote it anyway.

    They use and work on a system of knowledge steeped in time honored and capitalist traditions

    Once again we agree! Getting along famously now, aren't we. Many Linux and Open Source developers have built thier own businesses around Open Source, providing goods (computers) for Open Source to run on, services for both industry (customization, implementation, etc) and end users (networking services, web hosting, entertainment) and documentation (books) to teach the masses (consumers) how to make effective use of Open Source software in hopes that this will bring thier businesses more success and thier personal lives more enjoyment, increasing thier demand for more goods and services. Open source people: Upstanding citizens of our Grand Capitolist system!

    division of labor(modularity), stability(conservatism), diversification (to the point of parties spanning the globe contributing anony

    --
    Read, L