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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.
"SCO said it revoked IBM's license to ship AIX in June. In its countersuit, Big Blue reasserted its position that its AIX license is irrevocable and perpetual, but then added a new twist involving Novell, the company that owned Unix copyrights until selling them to SCO's predecessor in 1995.
;)
IBM's suit revealed that Novell on June 12 effectively forbade SCO from terminating IBM's AIX license. SCO said it revoked the AIX license on June 16. Novell maintained the right to issue such instructions to SCO under the terms of the Unix sale, the suit said. "
Does anyone know anything more about this?
I know tht Novell apparently DID sell the copyrights, but this is a news Item...
Bruce Perens might want to help clarifiy this for us
-Colin
Colin Davis
In a way, I'm glad it's IBM fighting the first big GPL court battle, rather than any of the advocacy organizations, which while strongly motivated and highly expert, are also woefully underfunded and would almost certainly lose in a drawn-out war of attrition.
For once, a corporate behemoth on our side...
When SCO dies, who will snatch up the assets it has (including if any valid IP)?
Who has more cash floating around than most?
M$... and that could get messy quickly.
sPh
So the big question; who shorted the stock? What was the price point and when do you plan to cash in? C'mon, fess up. We're all rooting for you to make a killing from SCO's flameout as we get the pleasure of watching Darl's FUD machine go crashing into the sea.
===== Murphy's Law is recursive. =====
...I always took it for granted that SCO obtained permission from IBM to use RCU, NUMA, ... in their OS. (I am assuming that those are the patents that IBM is accusing SCO of violating.)
You could assume that, or your could RTFA:
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.
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.
BTW- Don't you just love how general all of those sound? I'd love to see patent numbers, but it sounds like almost any OS might infringe on one or two of those.
the no
http://lamlaw.com/
Does anyone remember the Bill Gates thing on cross-license, well IBM is dumping huge amounts of money into Linux, they see the potential, it's in their interest to never use these patents against Linux, just as it's in their interest to never use them against MicroSoft, as it's in MicroSoft's interest to not use them against Linux as IBM is sitting there with it's portfolio ready to shred MicroSoft if it came down to it, so effectively Linux is using cross licesened patents, and being protected from others by IBM. This is business, this is how patents are used, we should be glad IBM is up on IP law and knows how to use it, and that Linux is so valuable to IBM.
Actually, IBM litigated until the United States Government ran out of money, which should really give SCO pause!
This is true, according to the book "Big Blue: IBM's use and abuse of power".
Baxter finally dropped the suit (Regan adnimistration) due to "lack of merit". Lack of merit? Then why did they spend 10+ years litigating this?
The price of freedom is eternal litigation.
I wonder if Boies is just sitting on his ass and that's all he's supposed to do.
I'd be willing to bet that this whole charade by SCO is just a shell game to pump and dump stock, and earn a bit of scratch from MS and SUN, while plowing the company under. Hiring Boies was a PR move. They never really intend to use him. I'll bet SCO doesn't expect to got trial. That's OK for Boies, he won't get a cut of $3 billion (like that would've happened, anyway) but I'm sure he's getting paid and doesn't have to do a damn thing except let his name be associated with the suit. SCO gets PR pump from his name, Boies gets a little cash (and the appreciation of Canopy, MS and SUN) for doing nothing. Win-win.
I've course, I'm just speculatin' on a hypothesis.
I'm serious about this. After IBM & Red Hat finish these pathetic twits off in court, their stock will be probably no more than 10 cents per share. The open source community needs to buy them (hell, everybody throw in a dollar) and then throw open their "intellectual property" completely free to the world. While we're at it, let's publicly abandon the Unix trademark (which is likely unenforcable, anyway).
Their market cap before this was $25M. I suspect it'll be 1/10 that after this is done. It's not much money spread among all of us.
Michael
Do you have ESP?
7. If, as a consequence of a court judgment or allegation of patent infringement or for any other reason (not limited to patent issues), conditions are imposed on you (whether by court order, agreement or otherwise) that contradict the conditions of this License, they do not excuse you from the conditions of this License. If you cannot distribute so as to satisfy simultaneously your obligations under this License and any other pertinent obligations, then as a consequence you may not distribute the Program at all. For example, if a patent license would not permit royalty-free redistribution of the Program by all those who receive copies directly or indirectly through you, then the only way you could satisfy both it and this License would be to refrain entirely from distribution of the Program.
So, yeah, IBM could kill Linux if it wanted to brush off some patent and take RedHat or someone to court. They way I read this (IANAL, duh), if IBM got a court order saying that Linux infringes some of its patents, people would have to stop distributing programs that cannot be used royalty-free, right?
Seems unlikely they they would do that.
According to forbes:
IBM last year took in more than $1 billion in Linux-related revenue. In its 2002 annual report IBM claims it has 7,500 employees involved in developing, selling or supporting Linux, and that more than 15% of the mainframe capacity it shipped last year was for Linux workloads.
IBM is pulling in some major cash from its Linux business (after having made an equally major investment, it seems). What motivation would they have to piss in their own cornflakes?
There is much cruelty in the universe, John.
Yeah, we seem to have the tour map.
I'd be willing to bet that this whole charade by SCO is just a shell game to pump and dump stock
a shell game? You can say that again!
I just finished my SCO timeline complete with SEC fillings. Got to go back and update it again. Oh well, here it is. Please email me if you can add to it.
June 27 2002
McBride becomes CEO of Caldera.
Stock price around $0.60
March 7 2003
SCO sues IBM
Stock price up from $2.21 to $3.10 but falls back to mid $2.00 range
March 18
SCO stocks hits low of $2.07
Jeff Hunsaker (VP Worldwide Marketing) gets 100,000 options
Reginald Broughton (Senior VP International Sales) gets 50,000 options
Michael Olsen (VP Finance) gets 50,000 options
Robert Bench (CFO) gets 100,000 options
Darl McBride (CEO) gets 200,000 options
Can anyone fill me in on what happened between 3/14 and 3/17 that caused the
price to drop from $2.64? And how did the executives know that $2.07 was the
lowest it would go?
April 8
Robert Bench sells 4100 shares at $2.90 each for $11,890.
April 23
SCO issues warning to Red Hat and SuSE
Stock is up to $3.10
May 2
IBM responses to lawsuit, denies claims
SCO claims they have proof
May 14
SCO stops selling Linux, sends out letter to 1500 large corporations
suggesting that they stop using Linux.
Stock has been steadily rising, now at $3.55
May 15
SCO offers to show proof under strict NDA to journalists only
Stock shoots up to $4.55
May 16
SCO changes name to SCO Group Inc.
Board of Directors gets 10,000 options each at $4.75
May 19
SCO announces that Microsoft has given it cash, and that M$ is
not the first company to pay it off. Rumours are that the other
company is Sun. Total revenue from both licences: $8.25M.
Stock price starts to really take off.
May 28
Novell issues press release challenging SCO
SCO states that they may end up suing Linus
Stock plummets from $8.71 to $6.60
June 3
Opinder Bawa (VP Global Services) pancis and sells 15,000 shares at a paltry
$6.00 each, making $90,000.
June 5
O. Bawa exercises 7916 in options at $1.20 each and sells them for
$6.60 each, netting himself just over $42,000. He really should
have waited a day.
June 6
SCO announces discovery of ammendment to Novell contract
Share price shoots up to $8.52
Giddy with glee, Jeff Hunsaker (VP Worldwide Marketing) sells
5000 shares for $44,500.
June 8 SCO announces that they have shown 80 lines of code to some
doofus. This is a Sunday.
June 9 The day after this announcement, shares are up to $9.38.
Robert Bench (CFO) celebrates by selling 7000 shares, making
over $64,400.
June 11 SCO gives IBM until Friday the 13th to settle.
Shares drop to $8.65. Believing that the end is near, Michael
Olsen (VP Finance) sells 6000 shares, earning $51,720.
June 13
IBM's deadline passes and SCO is still alive. The stock price shoots up
to $11.21. Darl buys 7003 shares for one tenth of a penny each. In an
interview, Chris Sontag (Snr VP OS) says that SCO may own BSD
as well.
June 16 SCO announces that they are revoking IBM's AIX license. IBM
announces that they don't care. Shares dip.
June 17 SCO decides that they actually want three billion from IBM and
elaborate on what technology they think IBM stole from them.
June 18 Sun launches ad campaign trying to get Linux and AIX customers
to use Solaris instead. SCO criticizing Linus in a court document.
June 20
Reginald Broughton, needing some weekend money, sells 5000 shares when the
stock price goes over $11, making almost $55,500. The price closes at $10.77.
June 23 SCO says that they won't sue their own Linux customers.
June 25 With the stock