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SCO Invoices For Unix Licenses Get Closer

beggs writes "BusinessWeek, InfoWorld and the EE Times Online all have stories about SCO's plans to send out license invoices to Linux vendors for 'Unix license fees for Linux.' The experts advice: Wait and see what happens with the court cases before you pay." RowLowy points to ZDnet's story, which says that "SCO will pursue commercial Linux users who have discussed their Linux work publicly ... However, it won't take action until it's done more research on those businesses." JayR writes to say that Michael Dell recently told a gathering of Dell investors that Dell Computer will offer no protection from SCO lawsuits to customers who buy Linux-based systems from Dell. Keep score: an anonymous reader points out that SCO executives are still selling off their stock. Total proceeds in August of over $600,000. Senior Vice President Reginald Broughton tops the list with over $300,000."

137 of 588 comments (clear)

  1. Krusty? by BigDumbAnimal · · Score: 5, Funny

    "and if my accountant is watching please STOP PAYMENT on this check"

    1. Re:Krusty? by Anonymous+Cowtard · · Score: 5, Funny

      Incorrect, it's:

      Krusty: "And if my banker is watching, let nothing STOP you from PAYMENT on this check."

    2. Re:Krusty? by FuzzyBad-Mofo · · Score: 3, Funny

      Worst Episode Ever!

    3. Re:Krusty? by dark_panda · · Score: 3, Funny

      More from Krusty:

      Krusty/SCO: All right, here's the deal. Every time you use Linux, you must send us... [holds up a check] 199 dollars!
      Announcer's Voice/Linux Users [fine print]: Checks will not be honored.

      - from Krusty Gets Kancelled

      J

  2. Yes!!! by BJH · · Score: 3, Insightful

    Yay! Another SCO story. I was going into withdrawal here.

    That said, is there anyone left out there who doesn't think that SCO executives were all along trying to pull a pump-n-dump of their own stock?

    1. Re:Yes!!! by paradxum · · Score: 4, Informative

      I'm just waiting for mister SEC to intervene.... It's looking like just a matter of time.

    2. Re:Yes!!! by bmongar · · Score: 4, Insightful

      It seems to me like the SEC has been more of a post mortum group on things like this rather than a preventative group. They wait until all the damage is done then point fingers and issue fines.

      --
      As x approaches total apathy I couldn't care less.
    3. Re:Yes!!! by colonwq · · Score: 2, Funny

      Arrggghhh!! My eyes!!!

      First she does a topless Christmass special. Now she is a love slave to McBride

      --
      -- Phase 1: Collect under pants Phase 2: ? Phase 3: Profit
    4. Re:Yes!!! by Newsome · · Score: 2, Funny

      $600,000 is peanuts and most of the sales were planned sales.

      I wouldn't mind a few of those peanuts!

      --
      http://www.tuxrocks.com/
    5. Re:Yes!!! by Tackhead · · Score: 3, Insightful
      > Arrggghhh!! My eyes!!!
      >
      >First [Martha Stewart] does a topless Christmass special. Now she is a love slave to McBride

      Look, could we please just go back to posting goatse.cx links?

    6. Re:Yes!!! by sbuckhopper · · Score: 2, Insightful

      $600,000 is peanuts

      Agreed, but the profit margins were insane.

      most of the sales were planned sales.

      Yes, but the whole set of events could be planned around this as well. It just happened to work in their favor that they predicted the market properly to favor their stock at the times when these press statements would be made.

      --
      "Everybody knows the moon's made of cheese," Wallace.
    7. Re:Yes!!! by shotfeel · · Score: 2, Funny

      $600,000 is peanuts

      Anybody want to hire me? I'll work for peanuts!

    8. Re:Yes!!! by Discopete · · Score: 2, Informative

      Actually, it doesn't really look like a pump-n-dump.
      Looking at the filings on Edgar for SCOX there is a SC 13G "Statement of Aquisition of Beneficial ownership" from a VC firm called Integral Capital Managment LLC, on 8-28-2003 for 680,000 shares.
      The SCO executive sales could very well have been necessary to free up the shares for this purchase.
      It will be interesting to read SCO's 10-Q for this quarter when they release it.

    9. Re:Yes!!! by cyberformer · · Score: 3, Insightful

      Discussion about SCO on /. is good, but the editors need to be careful about linking to pro-SCO articles. Large online publishers love a Slashdotting (more page impressions), and many privately gloat that they resort to trolling in an attempt to drive traffic. (This is separate from the well-known problem of clueless journalists who don't know enough to dismiss SCO's claims out-of-hand, and from the even better-known problem of corrupt publishers who censor criticism of that one big company.) Links to SCO FUD ultimately result in more SCO FUD.

  3. Extortion? by FileNotFound · · Score: 3, Insightful

    Isn't this somewhat like extortion?

    I mean demanding money for things that you had no input in? It's like me asking everyone who uses Windows to pay me because I think Ms stole my code. Hmm I think I'd have more reason than SCO actually..I did sent Ms some beta bug reports...

    --
    In Soviet Russia, the television watches YOU!
    1. Re:Extortion? by gl4ss · · Score: 3, Insightful

      well, it is.

      but now that they are starting to actually do something(demand payments) maybe someone will drag them to court over it(hopefully) in usa too.

      -

      --
      world was created 5 seconds before this post as it is.
    2. Re:Extortion? by rusty0101 · · Score: 5, Insightful

      Actually since you never placed an order with SCO for Linux, it is perfectly legal to send them a nice letter in response thanking them for delivering to you a product that you happen to enjoy using, but since you did not order from them, are under no legal obligation to send them any money for.

      -Rusty

      --
      You never know...
    3. Re:Extortion? by muirhead · · Score: 2, Interesting
      1. These guys will only stop when they see a reason to do so, such as a court order.
      They saw a cout order.
      They have not stopped yet.
      Go figure.

    4. Re:Extortion? by Lumpy · · Score: 5, Interesting

      Yes it is and if my company get's one the lawyers and financial department have already said that they will instantly persue legal action against SCO.

      it is illegal to do what they are doing, and they know it.

      it's time people start suing McBribe directly attack his pockets.

      --
      Do not look at laser with remaining good eye.
    5. Re:Extortion? by J.+J.+Ramsey · · Score: 3, Interesting

      "Isn't this somewhat like extortion?"

      Considering what we know of SCO's "evidence" against Linux, it's more like fraud: trying to use false pretense to get money.

    6. Re:Extortion? by Moth7 · · Score: 2, Funny

      A cout order? Is that written with the linux version of iostream.h then?

    7. Re:Extortion? by Anonymous Coward · · Score: 3, Insightful

      Precisely. Until they start getting dragged into multiple courts by multiple parties, they won't stop. As it stands, there's no risk in what they're doing. Now, it's true that IBM and Red Hat are suing them, but there need to be more. Not only will this have the effect of putting them in legal jeopardy, but it will also deflate their stock price, which also hurts them.

    8. Re:Extortion? by ronaldb64 · · Score: 4, Insightful
      So far they've only said they are going to send invoices. Just like they said their IP is in Linux, they said they have prove of it, etc. etc.

      Do you see a pattern here?

      --
      There's no place like 127.0.0.1
    9. Re:Extortion? by Goody · · Score: 3, Funny

      If this truly is exortion, then shouldn't the SCO executive team be sent to federal "pound-me-in-the-ass" prison ?

      Is prison rape still not funny as some Slashdotter so adamantly posted last week ?

      --
      Tired of being "punished" by the Slashdot $rtbl since 2002. I'm now over at http://soylentnews.org/ .
    10. Re:Extortion? by blibbleblobble · · Score: 2, Interesting

      Quite interesting to see which side Dell came down on. A totally irrelevant statement, but trying as best they can to dissuade people from buying Linux. Somebody explain to them the relevance of SCO_linux licensing on somebody who hasn't bought SCO linux, nor has any contract with SCO?

      Note to Dell: I'll remember this very well when we replace our PCs at work. You want to insult the free software community? Well, we're no longer the ones who buy Dell computers at work.

    11. Re:Extortion? by Valar · · Score: 2, Insightful

      No, the whole point of the comment was, if someone sends you their product unsolicited, they can't require you to pay for it. It's a federal commerce law.

  4. Hope they do it in Germany by Brahmastra · · Score: 4, Insightful

    In Germany, SCO got fined $10,800 for one offense. If they send multiple extortion letters, they will be fined for each letter. Or alternately, I hope the US courts wake up and follow the lead of the German courts.

    1. Re:Hope they do it in Germany by scovetta · · Score: 2, Funny

      Germany definately has it together.

      German man: Entschuldigen Sie, bitte, konnen Sie Deutsch sprechen?
      Basil: I'm sorry, could you say that again?
      German lady: You speak German?
      Basil: Oh, German! I'm sorry, I thought there was something wrong with you. Of course, the Germans!

      --
      Wer mit Ungeheuern kämpft, mag zusehn, dass er nicht dabei zum Ungeheuer wird. --Nietzsche
    2. Re:Hope they do it in Germany by mcpkaaos · · Score: 4, Funny

      Or alternately, I hope the US courts wake up and follow the lead of the German courts.

      Are you kidding? We're still trying to figure out how they make their beer so damned good.

      --
      It goes from God, to Jerry, to me.
    3. Re:Hope they do it in Germany by VivianC · · Score: 2, Funny

      Are you kidding? We're still trying to figure out how they make their beer so damned good.

      Ahh, the beer purity law. There is some government regulation that even a libertarian can get behind!

      --
      Viv

      Gmail invites for ip
  5. End in sight ? by Alain+Williams · · Score: 4, Interesting

    • SCO executives are still selling off their stock. Total proceeds in August of over $600,000.

    So will they relax a bit and stop hounding us when the last executive has sold his last share ?

    1. Re:End in sight ? by oolon · · Score: 5, Insightful

      Have a look at their total holdings, HUNSAKER, JEFF F. Vice President will be cashed out completely in 1-2 months at current rate. Even the larger holders at the current rate will be cashed out in a year.

      James

    2. Re:End in sight ? by oolon · · Score: 4, Informative

      The VP Jeff F Hunsaker has sold 60% of his holding in the last 2 months!

      James

  6. I am not paying anything without a PO number by Anonymous Coward · · Score: 5, Insightful

    lots of companies don't pay invoices unless they quote a purchase order number which matches the invoiced amount to within 5%

    1. Re:I am not paying anything without a PO number by Kurt+Gray · · Score: 5, Interesting
      But here's the point most readers here are missing: There are enough companies out there who are dumb enough (or have enough money to throw around without a care) to pay the invoice and that's all SCO is hoping for, a little more revenue plus a little more legitimacy in the eyes of the industry punditocracy as SCO will start reporting how much revenue they've gotten from "Linux licenses".

      It's sad and funny to see a publically traded company resort to an ages-old scam in order to get revenue. Anyone who gets an invoice should contact the National Fraud Information Center.

    2. Re:I am not paying anything without a PO number by poot_rootbeer · · Score: 2, Funny

      lots of companies don't pay invoices unless they quote a purchase order number which matches the invoiced amount to within 5%

      Note to self: overcharge my corporate customers by four percent every time.

  7. here is where the class action begins? by Comsn · · Score: 2, Interesting

    now when you all recieve your invoices, its time to make a class action lawsuit claiming damages!

    also put this under caldera news so i can block stupid SCO articles :V

  8. It's Obvious by Red+Rocket · · Score: 4, Insightful


    Corporation have WAY too much control over the legal process and society. They're wielding their greed-drunk power without any thought for anything except their profit.
    Remember "No Face" from Spirited Away? Think about it. Better to keep them out of the bath house.

    --
    - Hail to our fearless misleader! Fool speed ahead!
    1. Re:It's Obvious by mormop · · Score: 2, Interesting

      Corporation have WAY too much control over the legal process and society.

      A society can only be ruled over with the consent of the people and the art of any "democratic" government is to perfume the shit they dump on people so no-one smells it's presence. Only when the whole population is up to their ears in it does it seem to spark them into action.

      Whether or not anything can be done about it is down to the American people but I believe that Lincoln stated that (and I'm para-phrasing heavily here) If the government stops acting in the interests of the people the people have the right to bring down the government.

      Get saving then and start funding candidates that will not take any corporate money and will make decisions based on what's best for Joe Average and not the likes of Darl McShitforbrains. As the "land of the free" you should feel obliged to show us foreigners how it's done.

      Damn it man... For I minute I started believing it was possible myself.

      --
      Hmmmmmm..... Deep fried and look like Squirrel.
    2. Re:It's Obvious by Red+Rocket · · Score: 2, Insightful


      Unfortunately most govt agencies are incompetant,...

      Incompetence isn't the problem. The regulatory agencies have been captured by the corporations they're supposed to be regulating. The agencies are also under a starvation attack from lawmakers who love to cut the budgets of any agency that pisses off their corporate owners.

      --
      - Hail to our fearless misleader! Fool speed ahead!
  9. Not going to sue... by VivianC · · Score: 4, Funny

    Sure, we won't sue linux companies. We are going to go straight to billing them!

    So I guess they weren't lying!

    --
    Viv

    Gmail invites for ip
  10. lemme get this straight.. by son_of_asdf · · Score: 2, Informative

    So.....this means that SCO is (hypothetically) going to send me an invoice for $699 for each Linux box I'm running, having offered no actual proof that they own any of the code therein.

    Cheeky bastards. I could just as reasonably send my clients an invoice for the use of the proprietary PHP code on my web page.

    --
    Don't Panic!
    1. Re:lemme get this straight.. by delta407 · · Score: 2, Informative
      So.....this means that SCO is (hypothetically) going to send me an invoice for $699 for each Linux box I'm running, having offered no actual proof that they own any of the code therein.
      Sure, they can. And it's perfectly legal for them too. Why? Invoices mean squat. They have no legal means to force you to pay. If you don't pay, the entity issuing an invoice could take legal action against you -- in this instance, SCO could sue you -- but the invoice itself means nothing.

      I could just as reasonably send my clients an invoice for the use of the proprietary PHP code on my web page.
      Yep. Heck, I could invoice you for consuming oxygen from the air. It simply doesn't matter.

      BTW, I've called SCO several times now. They are expecting a press release detailing the pricing structure and payment plans for "Linux IP Licensing" sometime this week... should be interesting. If you want to find out more, call SCO at 1-800-726-8649, hit option 5, and ask about "Linux IP Licensing".
    2. Re:lemme get this straight.. by canajin56 · · Score: 4, Insightful

      Actually, it does matter. Because if you invoice over a good/service that you didn't provide, but you are claiming that you DID, that is fraud, which is a federal offence. If a judge rules that there is SCO code in Linux, AND that Linux users have to pay, then all is good for SCO. But if the judge determines that there ISN'T any code, or that users don't have to pay, then SCO could very well get charged with one count of fraud for every invoice they sent.

      At least, that is MY understanding of fraud. IANAL
      --
      ASCII stupid question, get a stupid ANSI
  11. I hear that SCO invoices... by DG · · Score: 5, Funny

    ...make great toilet paper.

    Although they may not flush well after use - better to send them back from whence they came, once you got your use out of it.

    Please use a plastic-lined envelope - no need to punish the poor mail carrier for SCO's stupidity.

    DG

    --
    Want to learn about race cars? Read my Book
  12. SCO is awesome!! by smd4985 · · Score: 5, Funny

    before you flame me - hear me out. i was just talking to my workmate, and he exclaimed 'SCO is awesome'. i was a bit taken aback, but after he explained himself i agree.

    it goes a little something like this: SCO is awesome because they guys are just so UTTERLY ridiculous. as idiotic as their thinking is, you have to respect the confidence they have to send out invoices. it is sort of like those poor flys and insects who are attracted to the bright lights of a bug zapper - as many times as they've seen their comrades electrocuted, they still have the wherewithal to fly directly to their deaths. well SCO, you haven't got long to live, so you might as well go out with a bang.

    feel free to send me that invoice, by the way, i'm out of toilet paper :) ....

    --
    smd4985
    1. Re:SCO is awesome!! by Crispy+Critters · · Score: 2, Interesting
      "SCO is awesome because they guys are just so UTTERLY ridiculous. as idiotic as their thinking is, you have to respect the confidence they have to send out invoices."

      I might agree if SCO was a person, but it is not. If SCO were a person, you could admire (in some twisted way) the brazen disregard for sane self interest. But it is execs like McBride who are committing these bizarre acts, and they risk nothing (as long as they can keep the SEC off their backs). SCO will die, and they'll be rich. People dumb enough to have bought SCO stock at $16.3 per share (10AM this morning) will be the ones losing out. And the taxpayers who have to fund the legal system. There is nothing worthy of admiration in SCO's actions.

  13. Re:Outrageous! by gl4ss · · Score: 3, Funny

    well it's maybe because dell isn't in the same business as sco is, selling 'protection' from 'something bad that might happen'.

    -

    --
    world was created 5 seconds before this post as it is.
  14. I'm sueing too. by joostje · · Score: 5, Funny
    I'm sueing too:
    • Slashdot for first making me a sco-story addict, and then leaving me for hours, sometimes even days without sco story.
    • ezines for reporting in favour of SCO, and thus spreading the slander
    • US government, for not sending nukes to Lindon, Utah.
    • SCO, for not sending me an invoice (I Want One Too!)
    • Myself, for replying to an SCO-slashdot post.

    BTW, Darl, I'm looking for a new job. Considering that I have no legal experience whatsoever, can think of loads of silly lawsuits in under 5 minutes (see above), I think I'll fit in perfectly with your legal team.

  15. IBM vs Canopy development? by eddy · · Score: 5, Interesting

    This is the most interesting thing I've seen so far today: "Docket Text: Return of service executed re: Subpoena served on Canopy Group c/o Ralph Yanno on 8/26/03" -- here.

    Could this be IBM going for the neck of the hydra? That would be... wonderful.

    --
    Belief is the currency of delusion.
    1. Re:IBM vs Canopy development? by Soko · · Score: 4, Insightful

      That would be wonderful, but is, of course purely speculative.

      Many have said that SCO picked the wrong company to start this little fiaSCO with, and this might show exactly why.

      Given the nature of the IBM legal team, it's possible that they're not just going to remove SCO from threatening Linux and AIX (and by extention a major slice of IBMs business future) but the people pulling SCOs strings.

      BTW, that should be Ralph J. Yarro, I think. Do a google search on Ralph J. Yarro - the first page is almost all links to "insider trading" going on not only SCO, but Altiris as well.

      Soko

      --
      "Depression is merely anger without enthusiasm." - Anonymous
    2. Re:IBM vs Canopy development? by JordoCrouse · · Score: 3, Interesting

      Very interesting web page.

      The thing that makes this even harder to swallow is that there are 41 motions on that website that have been filed, and you know that each and every one of them has cost each side thousands of dollars just to have some guy read it and respond. Thats at least a half a mil on both sides (probably much more), just to deal with the paperwork. And that doesn't include any of the time for discovery, depositions and other preliminary crap before the trial even begins to be considered to be scheduled.

      IBM can handle the cost. But how many of the poor sumbitches getting invoices can? What happens when one medium sized company decides that a huge "Linux" invoice is better than hiring a firm to deal with SCO's lawyers curning out one time wasting motion after another?

      There is nothing worse than legitmizing an illegal action because the illegal action would cost less than finding justice.

      PS: And please, no flames from the real lawyers. I know that you are just doing your jobs - using the law to your advantage.

      --
      Do you have Linux and a DotPal? Click here now!
    3. Re:IBM vs Canopy development? by Zathrus · · Score: 2, Insightful

      The thing that makes this even harder to swallow is that there are 41 motions on that website that have been filed, and you know that each and every one of them has cost each side thousands of dollars just to have some guy read it and respond. Thats at least a half a mil on both sides (probably much more), just to deal with the paperwork.

      Thousands of dollars? Those are some insanely high priced lawyers. If you get a top flight lawyer at $500/hour and it takes an average of 2 hours to read and respond to each filing, then that's only $41,000. Sure, it's not chump change, but it's hardly the half a million you figured.

      how many of the poor sumbitches getting invoices can?

      Uh, an invoice is not a legal document. I can invoice you for $50. Are you going to pay it? If so, let me get you a real invoice out post haste.

      Most likely you (and most companies) will ignore it because I sent you an invoice for something you didn't order. Better yet, it's an invoice from some company that you've never done business with. Most of the invoices will go in the trash. Some companies will note that legal action is threatened and they'll send it to a lawyer, probably on staff. Or to one that'll charge them There is nothing worse than legitmizing an illegal action because the illegal action would cost less than finding justice.

      Is that worse than having to close up shop, fire all your employees, and declare bankruptcy for your business (and maybe yourself if you didn't incorporate, were too dependant on your business, or did a poor job of maintaining the corporate veil)? There are noble concepts and then there's reality.

      IANAL, and even if I was you'd be a damn fool to take legal advice off of /.

  16. Isn't there some point in copyright law... by Kjella · · Score: 3, Insightful

    ...you can refer to when SCO start FUDing about "liability for Linux customers"?

    If Audi stole Honda's copyrighted engine design, would Audi owners be sued because they their car contains a part that is the result of copyright infringement? No.

    Isn't there some law, some precedence you can easily refer to and dismiss this as FUD? It'd do a lot to stop (corporate) Linux end-users from worrying.

    Because, even if all of SCOs wild claims are right, I still don't see how there is any possible grounds for customer liability. But I've yet to see a piece of legislation that actually says so.

    Kjella

    --
    Live today, because you never know what tomorrow brings
    1. Re:Isn't there some point in copyright law... by swillden · · Score: 4, Interesting

      If Audi stole Honda's copyrighted engine design, would Audi owners be sued because they their car contains a part that is the result of copyright infringement? No.

      You can't copyright an engine design. Substitute "patent" and your comment makes sense.

      I still don't see how there is any possible grounds for customer liability. But I've yet to see a piece of legislation that actually says so.

      Doesn't matter. It's SCO's responsibility to find a law that says they can hold the customers liable, not our responsibility to find one that says they can't.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    2. Re:Isn't there some point in copyright law... by Java+Pimp · · Score: 5, Interesting
      From a previous post of mine ...

      ... This is a point that I think is very important and I don't see it mentioned here too often. Copyright law provides certain protection to the author of copyrighted works. The copyrighted works cannot be used beyond the normal "fair use" provided for by copyright law without the "express writtten permission" of the author.

      The GPL provides this "express written permission" by the author and outlines the terms and conditions under which the permissions are granted. If the terms are not agreed to then the permissions are not granted. Any other use is in violation of the GPL "contract" and also copyright law!

      Let's assume that Linux in fact DOES contain SCO code. There are two options. Remember that Linux existed and SCO code would have been added. SCO has two choices: 1) release their additions under the provisions of the GPL and be in compliance. 2) actively move to identify and remove the IP from the Linux code base and prosecute whoever was responsible for breaching SCO's intelectual property.

      They cannot leave their IP in Linux and not release it under the GPL let alone try to license it. That is a violation of the GPL as well as a violation of the original author's (Linus's) copyright on Linux itself.

      --
      Ascalante: Your bride is over 3,000 years old.
      Kull: She told me she was 19!
    3. Re:Isn't there some point in copyright law... by Gaijin42 · · Score: 2

      I personally think that the code should be removed, but here is an analogy that perhaps better exemplifies SCOs position.

      I own a service that provides access to some information (stocks, sports scores, credit card tracking info, whatever)

      Bob gets an account at my service, and writes a program that logs in under that account, and displays it with some fancy graphics, perhaps even does some significant analysis (or just displays the raw data, it doesn't really affect the argument)

      Bob sells or gives this program away to the world.
      Or Bob distributes the source via GPL (anonymously even!)

      In the first senario, I sue the pants off of Bob. In the second, I don't know who bob is.

      However, I do know who you are. I tell you "hey, buy an account at my service, and you can keep using the program you got for free"

      or

      "keep using the program which steals from me, and I will sue you"

      Yes, in this case it would be easy to identify the infringing code, and remove it. But it would also esentially be the whole program. And what about people that didnt remove it etc.

      I think that explains what SCO is trying to do. Not that I think they are right. They are obviously trying to not have their code removed, so they can get the license fees, which sucks. But I don't know that it is quite illegal.

    4. Re:Isn't there some point in copyright law... by swillden · · Score: 2, Informative

      Umm ... you can clearly copyright an engine design. Design it, print out the instructions and blueprints for making it. Stick the (c) on it and send it to the copyright office. It's a written work, it gets copyright.

      What you have done is not to copyright the design, but copyright the blueprint and instructions.

      If someone then uses your documentation (without making copies) to build an engine per the design specifications, they have not infringed on your copyright.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  17. Can't wait... by Anonymous Coward · · Score: 5, Insightful
    As a state agency, I'd suspect it'd go something like this...

    Finance Manager: Got this invoice from SCO for some linux licenses, but it doesn't reference a Purchase Order number.

    Me: We never ordered anything from them

    Finance Manager: Do we use this Linux thing?

    Me: Yes, but we bought it through Redhat, here is the approved purchase orders and copies of our payment vouchers

    Finance Manager: So we have no business relationship with this company, nor received any goods or services from them?

    Me: No

    Finance Manager: Thanks, I'll forward it to the state attorney general's office for investigation.

    1. Re:Can't wait... by stratjakt · · Score: 3, Funny

      As a state agency

      You're a state agency?

      You smell like you might be the department of Agriculture?

      --
      I don't need no instructions to know how to rock!!!!
    2. Re:Can't wait... by telstar · · Score: 4, Funny

      Yeah, the problem is that since it's a state agency, at the pace you guys function, this conversation will take place about 9 years from now.

  18. Legality by Crashmarik · · Score: 3, Insightful

    At the very least sending fraudulent invoices, and misrepresenting a disputed issue must be a criminal action ?

    What does sco's staff consist of ? Every loser that the canopy group could find ? Do they all figure that knowingly participating in a criminal conspiracty won't have repercussions for them.

    If you work at SCO and are reading this, ask yourself why isn't Microsoft willing to do its own dirty work and do you think they will come to your rescue if this hits the fan.

  19. SCO Doesn't WANT to Win! by goldspider · · Score: 5, Insightful
    After this long, do you really think that SCO execs are so stupid to actually think their company will come out on top after all is said and done?

    The probable truth is that SCO is getting free press every day, and /. is certainly no exception there. Didn't it ever occur to folks here that press is all they're looking for?

    SCO bigwigs don't expect their company to pull through this, and they don't really care. All they're doing is keeping their company in the news and giving current and potential investors the impression that they are an aggressive, profit-driven company.

    Once they have deemed that investors have thrown enough money their way (and driven the stock price high enough), they will bail. This will end with SCO a flaming wreck, and its executives rich, and that's ALL they want.

    --
    "Ask not what your country can do for you." --John F. Kennedy
  20. I just happened to ask an IBMer by teamhasnoi · · Score: 2, Insightful
    when IBM was going to do something about SCO and their claims. Her response was a very simple drawn out, "Yeeaah, right".

    From this I gathered that IBM is doing the bare minimum they need to, and are letting SCO burn itself out. I also postulated that Arnold Schwarzenegger was refusing to be in the California debates to distance himself from the pack of other contenders, and raise his importance/stature above that of the masses.

    Just like IBM, to fit so much information in a very small space.

  21. Re:IBM vs Canopy development? Correction by Rosco+P.+Coltrane · · Score: 4, Interesting

    Docket Text: Return of service executed re: Subpoena served on Canopy Group c/o Ralph Yanno on 8/26/03

    The guy's name is Ralph Yarro actually. I happen to have met him personally when the Canopy company I worked for held its last Christmas party and he's definitely your typical hateable VC investor.

    Good for him if he gets into trouble. That'll make my company's 7 rounds of layoffs in 2 years easier to swallow.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  22. If they tried it in Europe... by noscule · · Score: 3, Interesting

    First off, SCO would have to pay value added tax (VAT) on every invoice it issued (in the UK this would amount to 17.5%) which is a pretty major disincentive to start sending out invoices you have little chance of collecting. There is also the question (which is open) as to whether they would be committing the criminal offence of obtaining a pecuniary advantage by deception.

  23. Brinkmanship, the word for SCO... by fruey · · Score: 2
    Mentioned in the article:

    brinkmanship

    The practice, especially in international politics, of seeking advantage by creating the impression that one is willing and able to push a highly dangerous situation to the limit rather than concede.

    Soon to be replaced by SCOmanship.

    --
    Conversion Rate Optimisation French / English consultant
  24. Suggested "invoice" response by Empiric · · Score: 3, Interesting

    Please note that to have any basis whatsoever to bill you, SCO needs to demonstrate not only that "Linux" infringes, but that your build of Linux infringes. They haven't remotely done the first, much less the second.

    And that's even if an end-user could be found liable, as the often-mentioned reader-of-an-infringing-New-York-Times analogy addresses.

    As it stands now, this is analogous to a company that sells classical music billing you because they've heard you have classical music in your CD collection, and it's absurd.

    --
    ~ Whence do you come, slayer of men, or where are you going, conqueror of space?
    1. Re:Suggested "invoice" response by Goo.cc · · Score: 2, Insightful

      Your comments on music CDs makes me think of past cases where a musician has been sued for copyright infringment. You didn't see the artist who was claiming his work was infringed upon trying to sue music buyers (or even the music stores that sold the item).

      In my opinion, the real problem with SCO billing people and companies now, before a court has even ruled of the merits of SCO's claims, is that someone probably will pay them.

  25. Some advice from the Better Business Bearu. by Anonymous Coward · · Score: 5, Informative
    Some advice from the Better Business Bearau


    PHONY INVOICE SCAMS

    The anatomy of a typical phony invoice scheme is as follows:


    The Call:

    While there is no set formula for these invoice schemes, most involve the use of an initial telephone contact. The call helps the swindler obtain the names of key business contacts, as well as some important details about the operation of the business and its products or services. The persons making these calls are, for the most part, remarkably smooth operators. Often brazen and forward in their approach, they have been known to talk their way through a chain of receptionists, secretaries, assistant managers, supervisors, and vice presidents to gain access to heads of companies. In most cases, however, they need gain access to only lower-level employees.


    The Invoice:

    The con artist's next contact with the intended victim usually comes in the form of a phony invoice sent through the mail. The invoice, which includes names, figures, and other details that add to the appearance of legitimacy, may be paid unwittingly along with a number of other routine bills. In many cases, the amount of the invoice is just small enough to slip by the check writer's attention. The swindler has had considerable experience calculating the most effective dollar amount, depending on variables such as the size of the firm, and the control it seems to have over its management system. Thousands of mass-mailed invoices, each for a small sum, may prove more luc-rative for the con artist, than several large invoices.


    The Scare Tactic:

    Scare tactics sometimes are used to increase the odds of success. A phony invoice, or past-due notice, stamped "Pay This Bill Now" or "We Are About to Start Action" may intimidate the victim into rushing to make out a check without carefully investigating the supposedly delinquent charge.


    SOLICITATIONS AS INVOICES

    One of the most common variations of the phony invoice scheme are solicitations disguised as invoices. These documents, which are actually solicitations for the purchase of goods or services, are carefully designed to look like legitimate invoices for goods or services ordered and received. In some cases, the small print may identify the bogus bill as a solicitation. The deceptive solicitation may be received through the mail, or it may be presented in person by a con artist who visits a business office on the pretext of saving the company handling charges.


    The business that pays a solicitation disguised as an invoice may receive the merchandise or service it was duped into ordering; more often, it will not, and efforts to trace the fraudulent firm that issued the "invoice" will prove futile.

  26. USPS and FTC by red+floyd · · Score: 5, Informative

    If they're sending via USMail, and you live in the US and receive one, send a copy to the USPS Postal Inspector. That's mail fraud, and the USPS takes a dim view of such things.

    I suspect the FTC wouldn't particularly like it either... Your state's Attorney General might be interested in the extortion issue, too.

    --
    The only reason we have the rights we have is that people just like us died to gain those rights. -- Cheerio Boy
    1. Re:USPS and FTC by dmaxwell · · Score: 4, Interesting

      Before you do that, send them a letter asking to identify specifically which parts of Linux are infringing. Don't volunteer anything, just try to get them to elaborate as much as possible. Save all responses and their envelopes and give that to the authorities. Record any phone conversations and indicate at the start you are doing so.

      Basically, if they admit on paper that they want payment from you for unsubstantiated claims then they're toast. If they won't admit it, save the copies of that as well. It will make an excellent shield if they try to take you to court. Any refusal to elaborate also makes a good spear if they try to bring collection and credit reporting agencies into it. You'll have a libel case.

      What you want is a packet of papers that makes the scam SCO is pulling clear. The "invoice" they send you in and of itself won't mean much without the background information. Mr. Postal Inspector and A.G. probably won't know the blow by blow the way you do. They won't necessarily take your word for it either.

  27. Wake me up when they actually send invoices by Sri+Lumpa · · Score: 3, Insightful


    SCO says:
    "We are going to send invoices to Linux users any time now"
    "We are going to send invoices to Linux users any day now, and if they don't pay we will SUE them."
    "We are going to send invoices to Linux users this month, and if they don't pay we will SUE them... and we MEAN IT."
    "We are probably going to send invoices to Linux users before the end of this month and if they don't pay we will give them every opportunity to pay before we sue them."

    Soon, with Apu's accent:
    "We are going to nicely send invoices to Linux users before the end of the year and if they don't pay... we will nicely send them invoices again."

    Just wake me up when there is news that somebody actually received one of these invoices, no need to make ten stories about them sending them RSN each time they threaten to send them.

    --
    "The obvious mathematical breakthrough would be development of an easy way to factor large prime numbers." Bill Gates,
    1. Re:Wake me up when they actually send invoices by hackstraw · · Score: 3, Insightful

      For what its worth, I just called SCO and they said that thier licences are being printed now and that they will be in next week. So expect yours in the mail soon.

      Someone else mentioned this. How can anybody be obligated to pay anything without a PO? Is it standard operating procedure for companies just to cut checks for any invoice they get in the mail?

  28. Sounds like mail fraud by Kohath · · Score: 5, Interesting
    I thought mailing invoices for goods and services not rendered was called mail fraud.

    Here's the mail fraud complaint form.

    Hint: Select "False Bill or Notice" when you fill this out.

  29. SCO Sucks by ttyp0 · · Score: 2, Informative

    Show your hate for SCO. Get a cool t-shirt and donate to the Open Source Now Fund.

  30. Red Hat's strategy REVEALED! by Anonymous Coward · · Score: 3, Funny

    They're obviously not too scared of SCO - they're hiring a paralegal to take care of everything.

  31. Only in Slashdot... by Mika_Lindman · · Score: 4, Funny

    ...you get your incorrect Simpsons-quote corrected within 5 minutes.

    by BigDumbAnimal (532071) on Wednesday September 03, @11:02AM (#6858949)

    "and if my accountant is watching please STOP PAYMENT on this check"

    by Anonymous Cowtard (573891) on Wednesday September 03, @11:06AM (#6858989)

    Incorrect, it's:

    Krusty: "And if my banker is watching, let nothing STOP you from PAYMENT on this check."

    1. Re:Only in Slashdot... by Otter · · Score: 2
      And corrected incorrectly within 4 minutes!

      by justforaday (560408) on 11:05 AM September 3rd, 2003 (#6858980)
      "and if my accountant is watching please DON'T STOP PAYMENT on this check"

      I'm just surprised someone didn't weigh in with a stupid SCO or DMCA joke at 11:03.

  32. My letter if I get an invoice by cluge · · Score: 2, Interesting


    To: SCO
    From: Linux Company with many machines

    Dear SCO,

    I have here in front of me your invoice saying that I owe you a license fee. In your letter you do not say what exactly infringes upon your IP, thus making it impossible for us to remove it. Even more disturbing is that you have yet to prove that any violation of you IP has taken place in a court of law. You seem to have gotten the cart before the horse and there is no legal precedant for us to pay for any "alleged violations".

    Upon advice of counsel this letter is being turned over to our local state's attorney with a complaint. It is our feeling that SCO is attempting to illegally extort money from our organization. SCO's recent press releases are so inflated and obvioulsy false that we are going to pursue a class action civil suit and also file a complaint with the SEC. It is my personal feeling that you are no different than a mobster asking for protection money.

    Sincerely,
    Joe Linux User


    The thing that disturbs me is that some in our community think tha SCO has shown it's "best hand" at recent events. If you truly think that, then you are sadly mistaken. SCO is running a media showcase, and NOTHING is "leaked" or gets out that isn't meant to. Think along the lines of a magicians miss direction. SCO probably doesn't have a case, but it most certainly has better "code" snippets than has been shown to anyone outside of the legal and technical team bringing suit.

    --
    "Science is about ego as much as it is about discovery and truth " - I said it, so sue me.
  33. I hope they go to jail FOR A LONG TIME by 7-Vodka · · Score: 3, Interesting
    This has infuriated me ever since june. That's probably when I realised that sco executives were planning a pump and dump routine.

    Isn't this against the law in some way? They're harming everyone who invested money in sco and the employees by steering it directly at a train wreck. Not to mention the slanderous lies they are spewing around everyday.

    But the high paid executives doing this don't care. They don't give one shit. They just want to get as much money out of the stock as possible in a short period of time. They're probably issuing each other multi-million dollar unsecured loans and stock options as we speak.

    What a load of thieves. If anyone deserves to go to jail it's these fuckers. If they really believed their claims had any chance of being for real they would ALL hold on to ALL of their stock, not dump it.

    And you wanna know what else makes me angry? The people who are buying their stock right now. They're the ones who make this scheme work, be it out of stupidity or whatever, by making the scox price higher. Fuck them too.

    --

    Liberty.

  34. New Development: IBM subpoena by Tsu+Dho+Nimh · · Score: 3, Informative
    IBM Subpoenas Canopy and Yarro
    Filed: 08/28/03
    Entered: 08/29/03
    Return of service executed
    Docket Text: Return of service executed re: Subpoena served on Canopy Group c/o Ralph Yanno on 8/26/03

    If they can prove that SCO was not an independent corporation, it's all over for Big Brother and his holding company. This is not discovery - that would have been against SCO.

  35. Re:Outrageous! by LWATCDR · · Score: 4, Insightful

    Dell offers no protection for systems with Windows installed.
    Microsoft does not offer protection for systems with Windows installed.
    Apple offers no protection for people with OS/X installed.
    Sun offers no protection for people with Solaris installed.
    Do we see a patern here?
    Heck if your new car's brakes fail and you crash into a bus of Nuns takinq orphans to a puppy farm do you think the car company will offer indemification? Heck no.
    No large company on the face of this earth will indemify another company. Large companies understand this. It is just the press and normal people that do not. If a large customer of Dell's gets sued by SCO then they will try and entagle Dell in the suit or if they loose, sue Dell.
    It is not Dells fault. SCO is using the scumbag tactic of going after the small fry hoping to scare them into giving them money. Even if SCO looses they will not refund their money! Why doesn't SCO sue Dell for selling Linux, or SuSE, or SUN... Wait Sun is going to release a version of Linux SCO says SUN in not indanger of a law suite since they have the rights to redistribute Unix. So if SUN which is safe releases a Linux Distro under GPL then...
    1. All the Linux code that SUN releases is now SCO safe under GPL with SCO's blessing
    OR
    2. SUN is breaking their agreement with SCO and releasing SCO's IP under GPL with full knowlage that they are doing so. So they should be added to the law suite ASAP. In fact if SCO does not add them then they could be considered to be giving permison to release the code as GPL.
    OR
    3. Sun is breaking the GPL and needs to be sued.

    This could be interesting.

    --
    See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  36. Estoppel prevents SCO from asserting claims. by FirstOne · · Score: 4, Interesting
    SCO by distributing linux and source code, et al, has agreed to the terms and conditions of GPL license. Furthermore, SCO has benefited greatly from usage and distribution of GPL software. GPL software is a collection of copyrighted works, whose distribution license requires the express requirement that future distribution, and usage rights may not be encumbered by the licensee.

    A few definitions from Black's law.

    "Estoppel" means that party is prevented by his own acts from claiming a right detriment of other party who was entitled to rely on such conduct and acted accordingly. Graham v. Asbury, 112 Ariz. 184, 540 P.2d 656, 658.

    A principle that provides that an individual is barred from denying or alleging a certain fact or state of facts because of that individuals previous conduct, allegation, or denial. A doctrine which holds that an inconsistent position, attitude, or course of conduct may not be adopted to loss or injury of another. Brand v. Farmers Mut. Protective Ass'n or Texas, Tex,Civ.App., 95 S.W.2d 994, 997.

    Thus by matter of record, SCO is Estopped from asserting any claims to the distribution or usage of GPL code which SCO has itself distributed. SCO is also prohibited by the doctrine of "Apparent authority" from asserting the claim that the distribution was not authorized.

    Basically, an open and shut case. SCO loses. (Defendant should seek both costs and scantions on plaintiff)

  37. 7 more months of this fun? by dafz1 · · Score: 5, Informative

    Looking through the history of 2:03cv00294/ SCO Grp v Intl Bus Mach Inc, I found the schedule for when things are going to happen.

    10/1: Amending of Pleadings
    10/22: Discovery Cutoff
    11/10: Deadline for Filing motions
    3/11/05: Attorney Conference
    3/28/05: Final Pretrial Conference for 2:30
    4/11/05: 5 Week Jury Trial

    By the 22nd of next month, SCO will have to release to IBM the offending code as part of the discovery phase. The question is how fast it will be leaked.

    And we get to watch this whole specatacle until May!

    1. Re:7 more months of this fun? by idiotnot · · Score: 4, Informative

      Erm, check your calendar there. Discovery cuttoff is 10/22/04, and the trial is 4/11/05. So, that's more like ninteen months.

      And no, I won't be paying any SCO invoices in the meantime.

    2. Re:7 more months of this fun? by AKnightCowboy · · Score: 2, Funny

      That's about 500 more SCO stories on Slashdot's front page before the trial even begins. Wow, it's going to be a long year.

  38. Not so obvious. by ratamacue · · Score: 4, Insightful

    Give credit where credit is due: This is the result of an overly complex, ambiguous, highly exploitable system of law. We are looking at a problem with government, not the corporations which are only playing the hand they've been dealt.

    If we want to address the problem, we need to cure the disease. Attacking the symptoms won't do a damn thing to change the way things work.

    1. Re:Not so obvious. by Red+Rocket · · Score: 5, Insightful


      We are looking at a problem with government, not the corporations...

      Exactly. And the problem with government is that it's been taken over by the corporations. "We the people" no longer run the government so corporations are getting out of control. Extremely bad behavior is being rewarded with extremely high profits (Microsoft) or increased stock prices (SCO).

      --
      - Hail to our fearless misleader! Fool speed ahead!
    2. Re:Not so obvious. by Red+Rocket · · Score: 2


      The only thing likely to work is massive civil disobedience. The only problem with that, though, is that they've already considered that and have implemented mechanisms to counter it.
      Don't think for a minute that the Patriot act is aimed at fighting terrorism. It's meant to be used against US citizens to prevent 1960's-style activism from upsetting their applecart. At least someone is learning from history. :/

      Corporate Feudalism? We're almost there, brother.

      --
      - Hail to our fearless misleader! Fool speed ahead!
  39. dirty work... by BrokenHalo · · Score: 3, Interesting

    Yes, it's dirty, but it obviously works for those selling otherwise moribund stock in SCO. The best thing the Linux distributors can do in this case is simply ignore SCO. Sooner or later they'll get bitchslapped in the courts by the big players whom they've taken the trouble to directly offend, and they'll crawl back into the compost whence they came.

  40. Re:People are so fucking stupid by mgessner · · Score: 2, Funny

    The postage alone will kill you. :)

    --
    "Sometimes the truth is stupid." - Lawrence, creator of Prime Intellect
  41. Re:Outrageous! by Ping+the+Penguin · · Score: 2, Funny

    Come on, it's not like their hardware protection is worth a damn.

    Me: The server is faulty

    Dell support: It's a software problem

    Me: One NIC works and the other's stopped

    Dell support: It's a software problem

    Me: There's smoke coming out of it

    Dell support: It's a software problem

  42. Let Sco commit mail fraud by Usagi_yo · · Score: 2, Insightful
    I predict within a week of sco sending out invoices and bills to Linux people, Many Criminal referrals will be forwarded to the USPO.


    They will have to act. Sending out blanket invoices to companies in hopes that some percentage of them paying, sounds like an illegal get rich scheme to me.


    Otherwise, why don't we all just create invoices and just swamp the corporate world with $54 invoices for 1 box of Xerox paper?

  43. Can we charge SCO? by SuperChuck69 · · Score: 2, Insightful
    Wait wait wait

    Linux/GNU is "protected" under GPL.
    SCO has tossed aside GPL as unenforceable.
    SCO is charging users for IP it claims was originally generated at SCO.
    SCO, under the name Caldera, distributed Linux/GNU software

    Does the door swing both ways? Can individuals within the open source community turn around and sue SCO/Caldera for distributing its intellectual property?

    I mean, if SCO is claiming the GPL isn't valid and only the original copyright holder can claim copy right, didn't they illegally distribute TONS of illegally copied software?

    --
    :wq
  44. Its Not extortion...ITS MAIL FRAUD by teambpsi · · Score: 2, Insightful

    you're right, its probably not extortion, but it certainly may come under Federal Mail Fraud charges

    OOOOOH! I hope they send some to Minnesota!! PLEASE PLEASE PLEASE!

    I know Attorney General Mike Hatch is looking for another bich to slap

    --

    Old age and treachery almost always overcome youth and skill.
  45. Send em! by QuackQuack · · Score: 2, Insightful

    I don't think SCO is stupid enough to actually send invoices. That could get them in legal hot water.

    I doubt most companies are going to blindly roll over and pay them. If one shows up, they'll ask their Linux salesperson, or inhouse Linux geek, who will most likely tell them not to pay it.

    As another poster pointed out, if you do actually receive one, send copies to the Postal inspector, and Attorney General.

    --
    By reading this sig, you agree to the terms of my sig license.
  46. My legal advice to SCO by KDan · · Score: 3, Funny

    "You can go f*ck yourselves."

    I think it's very sound. As a matter of fact, I believe they are following it at the moment.

    Daniel

    --
    Carpe Diem
  47. It's mail fraud and illegal by tarranp · · Score: 5, Informative

    If you get one of these letters, I suggest you go to this link:

    https://www.usps.com/postalinspectors/fraud/Mail Fr audComplaint.htm

    Essentially, sending a fraudulant invoice through the US mails is a crime:

    "Extortion (18 USC 873, 876 & 877)
    Postal Inspectors investigate extortion and blackmail when demands for ransoms or rewards are sent through the U.S. Mail. Inspectors also strictly enforce laws prohibiting mail that contains threats of kidnapping, physical injury, or injury to the property or reputations of others

    Mail Fraud (18 USC 1341, 1342 & 1345; 39 USC 3005 & 3007)
    The Postal Inspection Service is committed to protecting postal customers from misuse of the mail. Inspectors place special emphasis on mail fraud scams related to advance fees, boiler rooms, health care, insurance, investments, deceptive mailings and other consumer frauds, especially when they target the elderly or other susceptible groups."

    The guys who investigate it are U.S. Postal Inspectors, who have very draconian powers, and have very wide-ranging jurisdiction.

    1. Re:It's mail fraud and illegal by Anonymous+Custard · · Score: 3, Insightful

      Essentially, sending a fraudulant invoice through the US mails is a crime

      And no, ignorance of the law is not a valid defense. So even if SCO thought they were in the right sending these invoices, they can be busted for fraud. (Just like they're trying to bust Linux users who never intended on infringing SCO's alleged copyright).

  48. Desparate need for Tort Reform by wayward_son · · Score: 2, Insightful

    The SCO case demonstrates the desparate need for Tort Reform in this country.

    SCO has no case. They are all smoke and mirrors. However, the money required to hire the lawyers to fight SCO will probably cost more than paying SCO. Second of all, SCO can do more damage to Linux companies than SCO is worth.

    Also, SCO's strategy of suing the end users is pure extortion. Even if SCO was right and Linux did infringe on SCO's IP, there is absolutely no legal precedent for holding the end users liable, especially since SCO will not mention the infringing code. However, the cost of fighting the lawsuit is greater than the cost of paying SCO. Extortion, pure and simple.

    The best tort reform (which would also be useful in the DirecTV case) would be to not allow the suit to be filed unless the plaintiff presented evidence of wrong doing and legal liability on the part of the defendant. Unless the plaintiff can show this, the courts shouldn't even give them the time of day.

  49. Maybe not cretins by h00pla · · Score: 5, Informative
    The Groklaw weblog talks about some of the venture capital people buying up stock and just who is behind the buyers. Quite telling, methinks.

    --
    I've been swashdotted -- Elmer Fudd
  50. What copyright law says by nedwidek · · Score: 2, Insightful
    Copyright is exactly what it says "copy" "right". It means that the author of a work has exclusive rights on how it will be distributed. Infrigement is defined by para 501 of copyright law. The salient bit is
    Anyone who violates any of the exclusive rights of the copyright owner as provided by sections 106 through 122 or of the author as provided in section 106A(a), or who imports copies or phonorecords into the United States in violation of section 602, is an infringer of the copyright or right of the author,

    para 106-122 of copyright law. I won't bore you with details here (its very long), but it boils down that there is nothing that says that having a copy of a work is a violation. It is all about reproduction and distribution.


    Real world example time. I write a book and I sell First North American publishing rights to XYZ publisher. They publish a european edition of my book, which is a violation of my copyright, since I did not sell them those rights. Do I sue or invoice everyone with a copy of my book in europe or do I sue the publisher. The publisher of course since they are the infringing party.


    The simple matter of this is that SCO should be suing the distributors and not the end users, since they have no right to do so!


    Their legal thinking on this whole debacle has been laughable from the beginning. What is my opinion? I think they're trying to get a bunch of gullable folks to send them money. And, oh yeah, their claims are full of shit.


    The one claim by SCO's legal group that really bothers me (as an unpublished author) is the whole "GPL contravene's federal law by allowing more than one copy" crap. That would be in reference to Para 117: Limitations on exclusive rights: Computer programs, section a. This is a limitation on me as a developer to say that I do not have the right to claim that someone making a copy in order to use or archive is infringing. This in no way can be construed to mean that I as the author of a program cannot give people additional rights. It just means that I have to give them AT LEAST the right to make those copies. Heise and Boies both should be disbarred for those statements. Ok rant over, I feel better.


    I'm sure it goes without saying, but IANAL. Just someone who knows enough to read the law.

    --
    Post anonymously - For when your opinion embarrasses even you!
  51. Sorry for SCO, but... by AchilleTalon · · Score: 2, Funny
    since I am helding a patent on these techniques of extortion and they are not licensed to use them, they need to cease immediately any use of them or I will be in the obligation to sue them for patent, IP and copyright violation.

    --
    Achille Talon
    Hop!
  52. Actually, no by Royster · · Score: 5, Informative

    There's a big loophole in the insider trading laws and the SCO execs are taking advantage of it. There is a safe harbor if you have a plan to sell shares at predetermined points in time over a long enough period. The SCO execs have such a plan filed back in January at the same time that the lawsuit grumblings began to be heard.

    Look for another press release to boost the stock price next Monday, September 8, when some of the top execs will be selling again.

    --
    I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
    1. Re:Actually, no by shotfeel · · Score: 2

      Knowing something between little and nothing on the topic, that doesn't make sense. My understanding was that "insiders" are required to have a plan, but that this alone does not provide a safe harbor when they are in position to manipulate the stock prices -or does this fall under a different regulation?

      IOW there is no set of rules to follow which makes committing fraud legal.

  53. Shooting themselves in the foot by Anonymous Coward · · Score: 2, Interesting
    By attempting to collect from others, SCO are seriously hurting their case against IBM. No judge is going to let them double dip -- suing for damages on the one hand, while collecting the alleged "damages" elsewhere on the other hand.

    The gist of the case at this point seems to be that IBM allegedly released some code which was granted to SCO by a company IBM previously acquired. IBM's contract with SCO doesn't require them to give changes back to SCO, but Sequent's (and others') contracts did. This is ambiguous enough that no judge would award SCO damages unless SCO had worked in good faith to help IBM repair the damages and IBM hadn't then acted in good faith; from all appearances, SCO hasn't taken any steps in that direction. Instead, SCO have capitalized on the alleged mistake over and over again, already recovering the worth of the allegedly infringing code a thousand times over.

  54. Isn't Darl from Texas? by FFFish · · Score: 4, Funny

    And doesn't Texas have some arcane law about how it's legal to shoot someone if they're too damn dumb to live?

    Come, Americans. You've got more guns than you have people. Surely you can take care of the SCO problem!

    --

    --
    Don't like it? Respond with words, not karma.
  55. Even if there was code by phorm · · Score: 2

    In the great pattern of things, the end-user doesn't have responsibility to SCO but to the vendor. Now, I can go out and buy a playstation or whatever in a good-faith purchase. If company X suddenly discovered that the playstation core used their technology/code, they can't invoice me for the cost of the code - that goes to the vendor.

    Even in the best of cases for SCO, charging the end-user hardly sounds like a legitimate practice. In any software case I've heard of, it's the parent company/companies that end of paying out

  56. IS Directors talk to legal by Teahouse · · Score: 2, Interesting

    When SCO distributes it's "invoices" it will oficially be breaking the law. Without a legal buyer-seller agreeement, and without any court determination as to whether SCO's claims are legitimate, a counter-suit can be filed for extorsion. Get your legal department involved! Talk to your company's lawyers about filing a class-action suit.

    SCO has already made it clear that any company getting this "invoice" is likely to be high on theie list to be sued. Companies should look at this as a threat and be pre-emptive. Further, a group of large companies filing a class action against SCO would be the best means of expediting the process and gaining closure.

    By not having any buyer-seller agreement, and no legally recognized right to to the code they claim, SCO is no better than the neighborhood mafioso looking for protection money.

    Mobster SCO: "I have no service to sell you, and I have no legal right to demand money by law, but I am billing you anyway. If you don't pay up...something "bad" will happen." Isn't this the classic definition of extorsion?

    --
    "Curiosity killed the cat, but for a while I was a suspect."- Steven Wright
  57. To: SCO, Re: My invoice for violating the GPL by tz · · Score: 3, Interesting

    To whom it may concern:

    As you are violating the GPL by claiming some of the code you destributed is now covered by your copyright, And as I retain the copyright to a portion of the Linux code you now must license from me, I am submitting this invoice.

    Please remit $50,000 for the license to use my code as soon as possible as interest charges will accrue.

    -

    Any other Linux developer want to join in some action to bill SCO for their non-GPL use of our IP?

  58. Re:Extortion? -- YES by screenrc · · Score: 4, Informative

    Extortion is when you use fear to extract money
    from people you have no prior business relationship,
    and without giving reasons why they legaly have
    to pay you. I am sorry, "pay so I don't report
    you to the authorities", or "pay so I don't
    sue you" is illegal. It is simple extortion,
    as plain as it can possibly be.

  59. leaked? by anvilmark · · Score: 3, Funny

    I'm expecting something that could better be described as "a rupture in a submarine's hull at crush depth".

    "leak" indeed :)

  60. Coinkidink by rsax · · Score: 2, Funny
    BusinessWeek, InfoWorld and the EE Times Online all have stories about SCO's plans to send out license invoices to Linux vendors for 'Unix license fees for Linux.'

    In other news, office products retailers across the USA noticed an overwhelming unpredicted demand for paper shredders.

  61. SCO routine by azaris · · Score: 5, Funny

    SCO: The Linux kernel has millions of lines of infringing SCO code.
    Torvalds: You're smoking crack.
    SCO: Would you believe one million?
    Torvalds: No.
    SCO: Would you believe 80 lines?
    Torvalds: Doubtful.
    SCO: How about two variables with the same names?

  62. SCO legal Timeline by Tsu+Dho+Nimh · · Score: 4, Interesting
    SCO's reply to redhat is due Sep 15.
    SCO's 10Q is due Sep 15.
    SCO's reply to IBM is due Sep 25.

    This could be an interesting month.

  63. SEC should not ignore this! by MegaLung · · Score: 4, Insightful

    Where is the SEC in all this? Doesn't anybody see that this is just a floundering company's feeble attempt to gain profit. This is clearly a case for the SEC. Look at the artificially inflated stock price. The executives are selling their crappy stock at huge gains by bringing up this trumped up lawsuit. The SEC should be having a field day with SCO. These guys are criminals and should be prosecuted for such blatant, slanderous tripe. Come on system! Work! It is just like Enron. Fake company and fake profits.

    1. Re:SEC should not ignore this! by Baron+of+Greymatter · · Score: 2, Informative

      (Disclaimer: This may be redundant but I have my preferences set to Newest First)

      If SCO is mailing notices asking for any kind of payment when their legal rights have not been determined by a court, it's extortion - a federal offense in the US.

      If they are sending out an invoice for services not rendered or products not sold by them, it's mail fraud - an even bigger federal offense.

      The USPS takes a very dim view of people who do this. SCO has a better chance of being prosecuted for mail fraud than extortion.

      --
      Microsoft's VP of Customer Service is Helen Waite. If you are having problems with their products go to Helen Waite.
  64. Interesting link indicating conspiracy by tcoady · · Score: 2, Informative

    Microsoft is hosting a page called "Resources for Competing with Linux" with the news section pointing to all the best FUD stories. Does this add to the evidence that this whole thing is being encouraged by MS? Also on the same page under Microsoft's response to recent press there is a halloween style point by point rebuttal of a pro linux article, but I can't open it because it's protected by passport for some reason.

  65. my opportunity to get on board by sacrilicious · · Score: 4, Funny
    SCO executives are still selling off their stock.

    I'm pretty sure that SCO is going to be a great stock to hold onto. I'm hoping very much to get a job there. I keep checking their jobs page eagerly every day, but so far only the disappointing phrase "There are currently no job openings at SCO". Because so many top quality engineers are champing at the bit to work there, I will just have to be patient. I feel like a kid waiting outside a candy store that's about to open...

    --
    - First they ignore you, then they laugh at you, then ???, then profit.
  66. Compare this with McBride's public statements... by linuxjack55 · · Score: 4, Interesting

    Taken from page 12 of SCO's Q2 FY2003 quarterly report:

    Pursuit of the litigation against IBM and, potentially, others will be costly, and management expects the costs for legal fees could be substantial. In addition, the Company may experience a decrease in revenue as a result of the loss of sales of Linux products and initiatives previously undertaken jointly with IBM and others affiliated with IBM. The Company anticipates that participants in the Linux industry will seek to influence participants in the markets in which we sell our products to reduce or eliminate the amount of our products and services that they purchase. There is also a risk that the assertion of the Company's intellectual property rights will be negatively viewed by participants in our marketplace and we may lose support from such participants. Any of the foregoing could adversely affect the Company's position in the marketplace and our results of operations. The ultimate outcome or potential effect on the Company's results of operations or financial position is not currently known or determinable. [emphasis added]

    This is in a footnote to the company's financials. Yet, when the company's CEO speaks publicly about the matter (and the related actions the company is taking), none of these risk factors are mentioned. Intellectual property litigation is a high-risk proposition under any circumstances. Given the convoluted pedigree of the rights involved in this case, asserting that a favorable outcome is certain -- as Mr. McBride has done with every reporter he has talked to -- is speculation of the most pernicious order, and shows a reckless disregard of his duty to provide the investing public with an accurate statement of the company's affairs.

    The conscientious exercise of that duty would seem especially important for a publicly-traded corporation where insiders or related parties own almost 50% of the outstanding stock, and millions of low-balled options are in the portfolios of executives and board members. Based on Mr. McBride's statements -- which are ultimately self-serving, since he has an interest in 800,000 options priced between $0.76 and $2.07 a share -- the price of SCOX has septupled in just six months. Whether its the product of fact or fiction remains to be seen, but there seems to be something very, very wrong with a CEO publicly contradicting the risks reported in a company's financial statement.

    --
    The trouble with practical jokes is that very often they get elected. -- Will Rogers
  67. Report it to USPS instead. by GQuon · · Score: 2, Informative
    The NFIC accepts reports about attempts to defraud consumers on the telephone or the Internet.

    From the National Fraud Information Center:
    The NFIC accepts reports about attempts to defraud consumers on the telephone or the Internet.


    If the invoice/treath came by mail (in the United States), contact U. S. Postal Inspection Service instead. They are more likely to investigate if more people comlain.

    Assignment:
    Even before the invoice goes out, national media, especially financial media read by the "pointy haired bosses", should print a "fraud warning" against this invoice. It should be factual, and state that legal proceedings are pending.
    All SCO could have done about this was to sue for libel but that case would be even weaker, and also easier to understand for judges and the general public.
    --
    Irene KHAAAAAAN!
  68. Re:Its Not extortion by DickBreath · · Score: 3, Interesting

    They believe they own the rights to said product.

    They can believe anything they want. Some people believe the earth is flat and the moon is made of cheese. They still have to obey the law, including postal regulations.

    If SCO believes that they have IP rights in Linux, then they need to point it out, and possibly prove it if challenged, prior to any payment.

    Simply believing that you infringe some IP that I own, through no willful action of your own does not give me a legal right to bill you.


    They are demanding a license fee to make you legal, or you are subject to a suit.

    So, they can sue. In this case, they have to prove their claim. If they want money without a suit, they still have to prove their claim. What is the difficulty you have with this concept?

    On a different tack, no liability attached to an end user in any event. They would have to sue who made the copies of the infringing code. Red Hat. SuSE. Etc.

    Finally, even if SCO could prove their claims against IBM, then IBM would pay them $3 Billion. This is the full and complete restitution for their damages causes by IBM's bad conduct. (If they could prove it.) Still, no liability attaches to end users, nor distributers in this case. No judge allows you to collect damages multiple times. If IBM damaged SCO, then IBM will pay for it and then restitution has been made to SCO. End of story.

    --

    I'll see your senator, and I'll raise you two judges.
  69. Visit Groklaw by bstadil · · Score: 3, Informative
    This comes from Groklaw that has a lot of interesting comments. Name is Yarro by the way.

    Interesting comment from JF

    Quote

    Unless you are using the DMCA to get rubber-stamped subpoenas like the RIAA, a subpoena means you showed a judge enough evidence to convince them that you are probably right on a point related to the case.

    The fact that IBM got a subpoena indicates that laid some pretty damning evidence in front of a judge. Any indication of which jurisdiction issued the subpoena?

    If it was the courts there in Utah, that at least SQUARES the power of the evidence in my opinion given that SCO/Canopy has the hometown advantage. J.F. 9/3/03; 11:07:56 AM

    --
    Help fight continental drift.
  70. Re:Why is the Stock Price still going up? by sir99 · · Score: 3, Insightful
    Despite my linux allegiance, I tend to trust people spending the cash more than those trolling the message boards.
    You're kidding, right? It's probably the same idiots that invested in all the dotcoms that have appeared on fuckedcompany.com.
    --
    The ocean parts and the meteors come down
    Laid out in amber, baby.
  71. DoS them! (their staff, that is) by Frodo420024 · · Score: 2, Interesting
    Hi

    Seems our foes at SCO are at it again. I emailed them to inquire about why they'd request license for my two desktops, two servers. They actually replied, requesting name, address and info about my Linux installations (distribution etc.). I've written a very, very detailed explanation about it (quoting LOTS of material showing how wacky they are. Just facts), and this has in turn been forwarded to another sales representative. Now two of them have read my description of their sillyness.

    If, based on this, they send me an invoice, I'll take them to court for fraud (it's just like those fake phone dictionaries sending out masses of bills).

    And if sufficient many of us keem them busy like this, they'll be too busy to get any work done.

    The letter is a bit too long to post here, but I'll email it to anyone interested. Just please do not send them a copy of this! Use it as inspiration, write your own.

    --
    I'm in a Unix state of mind.
  72. Re:Outrageous! by I+Like+Swords!!! · · Score: 3, Insightful

    I thought SCO are argueing that the GPL is invalid and that all GPL code is public domain ...

    o.O Then.. how would SCO have any reason, or hell validity (hold off the obviousness of that ;) ), in suing someone for using code from public domain? That would also mean anything they do is also public domain. I seriously doubt that that is what they are intending by claiming GPL to be invalid. Probably more like all GPL code is copyrighted and thus NOT in public domain. I could be wrong.

    --
    .unsigged
  73. WOW! Imagine that! by pair-a-noyd · · Score: 3, Funny

    What timing! My SCO invoice showed up in my mailbox just about the same time I ran out of toilet paper!!

    Thanks SCO! You saved my day!

  74. Extortion: Responsibility of SCOX Shareholders by reporter · · Score: 2, Interesting
    At SCO, the managers all the way up to CEO Darl McBride appear to be unscrupulous folks who do not understand how code in the operating-system (OS) works. Any copyright-infringing code in the OS can be easily re-written by a competent computer-science (CS) student at Carnegie-Mellon University (CMU). The attempt by SCO to thwart the growth of Linux will not succeed.

    Since we live in the West, the biggest issue is the unethical behavior of SCO and its managers. We have justifiably criticized them for trying to extort money via these ridiculous invoices. However, we need to go beyond criticizing only them. They actually work for someone: the shareholders.

    Yes. The SCO shareholders own SCO and ultimately decide whether McBride keeps his job. The shareholders are the most guilty party in these pump-and-dump and extortion schemes hatched by SCO managers since the shareholders have the power to terminate the employment of McBride. The list at LionShares indicates the 15 financial institutions holding the largest number of shares of the SCO Group. Together, they hold 15% of the total outstanding shares. These financial institutions must immediately hold a special session of shareholders in order to terminate the employment of the managers (like McBride) at SCO group.

    We, Slashdotters, should check our mutual funds immediately. If they own any shares of the SCO Group, then we should transfer the money out of those funds. Furthermore, there are several socially responsible mutual funds (SRMFs). We must bring the unethical behavior of the SCO group to the attention of the SRMF managers. They are bound, by the terms of their SRMFs, to sell all shares of the SCO Group.

    ... from the desk of the reporter

  75. for those too lazy to click by Anonymous Coward · · Score: 2, Informative

    TOP 15 Institution Name

    Integral Capital Mgmt
    Pequot Capital Mgmt
    Barclays Global Investors Intl
    Whitney Asset Management Llc
    Royce & Associates
    Weiss Peck & Greer
    Oberweis Asset Mgmt
    American Century Investments
    Vanguard Group
    Lehman Brothers Asset Mgmt
    Northern Trust Co (chicago)
    Zweig Dimenna Partners
    Highland Capital Mgmt Corp
    Fidelity Mgmt & Research Co
    Deutsche Asset Mgmt (new York

    zeke

  76. Re:Why is the Stock Price still going up? by _Sprocket_ · · Score: 2, Interesting


    If you look outside the jaded slashdot somebody is investing a lot of faith in SCOX.


    Sure. But faith is not proof. It simply means someone believes in something. Faith can be misplaced. And it can be abused.

    That's not to say one can't make a profit from faith. So who would be profiting? Tim Rushing has an interesting idea.


    Despite my linux allegiance, I tend to trust people spending the cash more than those trolling the message boards.


    Just because you're able to spend money doesn't mean you actually know anything. I believe there is an entire industry roughly based on this concept out of Nevada... primarily Las Vegas.
  77. SCO Execs Liable for Fraud? by cc_pirate · · Score: 2, Interesting

    Since they are pumping up the stock price with lots of big claims that it will probably be provable they knew were false, in order to sell their stock, will they be the next executives to go to prison?

    If so, it couldn't happen to a nicer bunch of &*%$@!

    Here's hoping they enjoy having Ken Lay as a cellmate...

    --

    "There are laws that enslave men, and laws that set them free. " - Sean Connery as King Arthur

  78. It's just hype. by walterbyrd · · Score: 2, Insightful

    You have to learn to read these scox press releases very carefully. For example: scox said they don't plan to sue linux users, then the same day scox said: just because we don't plan to, doesn't mean we won't.

    >>the first batch of bills being sent to around 1,000 US users.

    Note the wording? "around 1000" that could mean less than 5.

    >>is likely to result in legal action, the company warned>"A large number of commercial Linux users could begin receiving [invoices] in the next month or two.

    "could begin"

    >>"I would say that a batch in the neighbourhood of 1,000 or so would go out." >"Sooner or later the invoicing will reach European companies I'm sure

    "sooner or later" = never.

    >>Companies that refuse to pay the invoice may need to have this resolved through the courts,

    "may need"

    Add it all up. Scox is saying exactly nothing. It's all hype. But isn't that the way fud works?

  79. Time for another fine in Germany by Daniel+Phillips · · Score: 3, Informative

    Stowell added: "Sooner or later the invoicing will reach European companies I'm sure. We will not be limiting this to a US only market."

    This warning seems to be a clear breach of the German injunction.

    For that matter, so is the material on SCO's main web page here, which makes the unproven allegation "customers unknowingly received illegal copies of SCO property", among other things. I can't think of any reason why the injunction would be limited to material on the German-language page, which is, after all, also served from the U.S.

    --
    Have you got your LWN subscription yet?
  80. Time to tell SCO employees... by Zeinfeld · · Score: 4, Insightful
    I think it is now time to tell SCO employees that they are simply never going to work in this industry again. I certainly would not hire someone who worked for a company with the business ethics that SCO is displaying. Nor would I advise any of the VC companies I work with to fund a company that involved any of these people in senior positions.

    I have always believed that personal integrity is one of the biggest indicators of likely success. A few years ago that was an unfashionable position to take, today in the wake of Enron, Haliburton, Sunbeam etc. more people seem to take my point of view.

    I remember back when the Cantor and Segal thing hit telling Laurence Canter that the Hi Tech industry was a small pond and that most of the people who got rich from it did so by being a part of the right circles, playing the inside game. Few people can have realized the potential of the internet as early as Canter and Segal did and ended up worse off than they started as a result.

    I think it will turn out the same way for the SCO folk. It is not like they have skills that are exactly sought after in the Windows world. It is going to be interesting seeing these chuckleheads trying to get jobs at IBM and Red Hat in a years time.

    --
    Looking for an Information Security student project suggestion?
    Try http://dotcrimeManifesto.com/
    1. Re:Time to tell SCO employees... by WCMI92 · · Score: 3, Insightful

      I'd never hire, or work with someone who worked at SCO today...

      Clearly SCO is pulling a stock scam.

      --
      Corporatism != Free Market
  81. If thats the way sco wants it by michaelsimms · · Score: 2, Interesting
    If sco is going after companies that are publicly saying they are using Linux - I hereby state

    Tux Games and Linux Game Publishing are using Linux servers

    SCO can bite me as they arent getting a penny from us. I'll spend every penny my companies have to defend our rights under the GPL and run my company into the ground doing it, before I let them have a penny of it.

    I call on other Linux companies to make their claim to Linux. Tell SCO that you wont be bullied!

    --

    Tux Games. Your complete source for native Linux games.