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SCO Volleys to Red Hat

ZeroVerteX noted that News.com is saying "The SCO Group fired back against Linux leader Red Hat on Monday, filing a motion to dismiss the Linux company's suit against SCO. In a motion filed late Monday in U.S. District Court in Delaware, SCO argues that Red Hat has no grounds to sue SCO, as SCO's actions against the open-source Linux operating system have not specifically targeted Red Hat." So it's ok to threaten a community, but not ok for a member of that same community to stand up?

36 of 469 comments (clear)

  1. Mmm.. by eddy · · Score: 5, Informative

    "There will be a day of reckoning for Red Hat and SuSE when this is done." --Darl McBride, Apr 24 2003, here

    --
    Belief is the currency of delusion.
  2. Every right to sue... by Anonymous Coward · · Score: 5, Informative

    By SCO using fraudulent claims to deminish the marketability of RedHat's own products (as well as that of the Linux marketplace as a whole), RedHat has every right to sue.

  3. Stock by MindStalker · · Score: 3, Informative

    Wow! SCO's stock is at 19.17 WTF!!!

  4. So what? by 91degrees · · Score: 3, Informative

    I mean, of course they have. A motion to dismiss is just part of the dance. It's typically the first reaction of a legal team to a legal threat. I'm pretty certain its the first thing that IBM did as well.

    It's often a long shot, but if granted, it will save SCO a lot of time and money.

  5. Nothing to See Here, Folks, Move Along... by judmarc · · Score: 5, Informative

    IAAL, and a motion to dismiss is something that is filed in nearly every lawsuit on the off chance that it will actually work and you can avoid having your client pay the expenses of litigation.

    Leaving out any comment about the legal judgment involved in SCO filing the original lawsuit, if SCO's lawyers *hadn't* recommended filing this motion to dismiss Red Hat's suit, it would have constituted malpractice.

    1. Re:Nothing to See Here, Folks, Move Along... by Chuut-Riit · · Score: 4, Informative

      IAAL too, and I think your comment goes too far. It is NOT malpractice to not file a motion to dismiss in nearly every lawsuit. In fact, many motions to dismiss are unsupported and unsupportable; filing one of these in a federal lawsuit risks getting the movant and his counsel sanctioned under Rule 11. THAT is probably malpractice.

      The key here is that Redhat filed a declaratory judgment action. Jurisdiction under the Declaratory Judgment Act is ALWAYS discretionary with the judge, even if the plaintiff is reasonably apprehensive that he's about to be sued. That gives SCO a better chance of succeeding than if Redhat were suing under a different jurisdictional basis.

  6. Re:For all this 'talk' of community by Anonymous Coward · · Score: 1, Informative

    SCO has, in effect, called the 'team' that developed the Linux kernel thieves.


    Technical correction: SCO has, in effect, called the 'team' that developed the Linux kernel, copyright infringers.

    I mistakenly confused "intellectual property" with actual property. Sorry for any confustion.
  7. Consequences. by defishguy · · Score: 2, Informative

    If SCO fails in its motion then it is a terrific sign for future anti-Linux lawsuits. It would mean that SCO could not convince a judge that its evidence is strong enough to withstand counter evidence. We know this is true but convincing a judge is a different matter. What Linux needs is the precedent of a judge agreeing with us (through RedHat).

    This is going to be fun to watch.

    1. Re:Consequences. by judmarc · · Score: 4, Informative

      Legally speaking, nah, that's not what failure of a motion to dismiss means.

      A motion to dismiss says that *without considering any evidence*, and *taking everything you say as true*, you haven't managed to show anything wrong. Or in plain English, "Yeah, even if you're right, so what?"

      So all that the failure of this motion to dismiss would mean is that Red Hat's lawyers know how to start a lawsuit, which presumably they do.

    2. Re:Consequences. by I+am+Kobayashi · · Score: 3, Informative

      Right, and in this case really it is just a question of jurisdiction. Federal courts can only hear actual cases and controversies, they are not allowed to give what amounts to an advisory opinion under Article III of the U.S. Constitution. SCO is simply arguing (based on the press report of its motion to dismiss) that there is no such controversy here since SCO has made no direct threat of imminent litigation towards Red Hat specifically. So SCO is arguing that Red Hat's claim is not proper under the declaratory judgment act. Basically this motion has nothing to do with the merits or substance of either sides claims regarding the software/code/copyrights etc. It is a mere jurisidictional issue. Even if SCO wins this motion and Red Hat's claims are dismissed, if SCO later sends a demand letter or something to that effect to Red Hat, Red Hat could bring this same action... But not that Red Hat has shown its willingness to litigate, SCO probably would file a suit before sending such a letter so that they could pick the forum for the litigation....

      --
      --Kobayashi--
  8. Re:First amendment by Anonymous Coward · · Score: 1, Informative

    I say that since you can't jail a company or kill it, a company should not have the rights of an individual.

    I have to disagree. Corporations should have the same rights as individuals. However, what you're forgetting is that freedom of speech only applies if it is opinion or the truth. If the statements made can be proven false and people believe them to the point of hurting the reputation or otherwise of the victim, then it is either slander or libel (depending if its spoken or written).

    For example, if I say Bill Gates is a pig-fucker and people are stupid enough to believe it and his reputation or otherwise suffers because of my comments, i can be sued for slander.

    Either way, SCO execs shouldn't be jailed over what their slanderous ways, but rather for all the other crimes they've committed through this whole ordeal.

  9. Re:SCO is not targetting Linux with a lawsuit by Anonymous Coward · · Score: 1, Informative

    Dont be nieve. Its quite apparent that SCO does not intend to stop with IBM. They have said as much themselves, though they tend to change their story every few days.

  10. File a complaint with the FTC by Slashdolt · · Score: 5, Informative

    I've posted this before, but instead of simply whining about their behavior here at /. we should be filing complaints with the FTC. Mention how they are trying to sell something that they do not own, and that if you don't pay them now (before they show what they own), they are saying that you'll owe them more later. Licenses start at $699 for a single processor during the promotional period.

    SCO's Address:
    The SCO Group
    355 South 520 West
    Suite 100
    Lindon, Utah 84042 USA
    801-765-4999 phone
    801-765-1313 fax

    FTC Consumer Complaint Form

    Take a stand and make a real difference.

    --
    Slash

    1. Re:File a complaint with the FTC by HiThere · · Score: 2, Informative

      Good, but the GPL is far different from public domain. I hope that the FTC understands the distiction.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
  11. Re:Mmm, again .. by eddy · · Score: 2, Informative

    No. SCO must pass along most (I believe) of the money to Novell. They're like a debt-collecting agency, collecting for Novell.

    [mod-limit: 2]

    --
    Belief is the currency of delusion.
  12. The rats are jumping ship by Anonymous Coward · · Score: 4, Informative

    A day of reckoning indeed. Lots of SCO insiders have been selling shares during the past few months. None of them are buying. These aren't just anybody. We're talking Robert K. Bench, Chief Financial Officier ; Reginald C. Broughton, Senior Executive VP ; Michael P. Olson, Controller ; Michael Sean Wilson, Senior VP ; Jeff F. Hunsaker, VP . These are people who should have some idea of the health of the company.

  13. SCO letters to customer by thoolihan · · Score: 4, Informative

    SCO is sending out letters about liability to licensing fees to GNU/Linux users, including RedHat's customers. That should be all the standing they need in court.

    -t

    --
    http://unmoldable.com W:"No one of consequence" I:"I must know" W:"Get used to disappointment"
  14. Re:Does this sound familliar? by saidhthe · · Score: 3, Informative

    One thing to note, Caldera did not win that case. Microsoft cut their losses in the midst of the anti-trust lawsuit and settled out of court.

    --
    endit
  15. Re:SCO city to city tour by lamename · · Score: 1, Informative

    Interesting note on the signup page:

    "SCO reserves the right to withdraw registrations using our discretion."

    You think maybe they expect people to register who actually don't care about the great procucts they offer? I urge everybody to sign up now. The agenda says there will be a Q&A session. I can hardly wait.

  16. Your right by bahamat · · Score: 5, Informative

    No. SCO must pass along most (I believe) of the money to Novell. They're like a debt-collecting agency, collecting for Novell.

    Yes, on each sale 5% goes to SCO and 95% goes to Novell.
    Quoting an e-week article here:

    Under that agency agreement, SCO collects all customer payments and remits 95 percent of the collected funds to Novell and retains 5 percent as an administrative fee. SCO records the 5 percent administrative fee as revenue in its consolidated statements of operations.

    1. Re:Your right by MuParadigm · · Score: 2, Informative


      That 95% figure is only for outstanding contracts that Novell had prior to selling its Unix businees to SCO. I would guess that the majority of SCO Unix licenseeing contracts require a far smaller royalty to Novell at this point.

      On the other hand, the IBM license may be one of those contracts, in which case SCO might not even have the *standing* to sue IBM. I wonder if IBM is pursuing this angle. Some of the averments they deny in their response to SCO's amended complaint certainly leave them open to make this argument.

  17. Re:For all this 'talk' of community by gmack · · Score: 4, Informative

    I don't know why this troll was modded but now that it is I'll respond.

    First of all what was taken from freebsd? the idea or the code?

    Second the ATA "copy" was in fact proved to be just some headders that the freebsd people had reverse engineered but that Andre had gone to the manufacturer for and gotten the actual documentation. So who coppied what?

    As for the Virgin incedent I found no info on that at all other than how to install a new linux distro onto it and some comments about how the default OS is dog slow and installing either windows or Linux on it is a better idea.

    Please check your facts next time.

  18. Re:The community should realize ... by arivanov · · Score: 4, Informative

    Not really.

    These are the same grounds on which the OFT dismissed mine (and quite a few other) complains against it in the UK.

    It is a generally valid argument as far as anticompetitive practices are concerned. You are not allowed to complain unless you are directly affected. All that Red Hat needs to prove that it is directly affected with relation to one or more of the SCO actions it alleges to be illegal.

    --
    Baker's Law: Misery no longer loves company. Nowadays it insists on it
    http://www.sigsegv.cx/
  19. Re:For all this 'talk' of community by Asmodai · · Score: 2, Informative

    [...] proved to be just some headders [sic]

    Still, there was a copyright on them even though they were reverse engineered, that's not a general waiver to just do with it what you like, you still have to adhere to the BSD license. Furthermore, the fact that Andre, after the fact, got the documentation from the vendor has nothing to do with the issue.

    They were copied verbatim without any attribution. In a community where people are so scared that the GPL'd code gets mistreated the same people are quite lax and tolerating when the reverse happens.

    The knife does cut on both sides.

    --
    Jeroen Ruigrok/Asmodai
  20. Re:For all this 'talk' of community by gmack · · Score: 2, Informative

    No they were NOT coppied.. they were derived from the documentation provided by the hardware vendor.

    There are only so many ways you can write data structures that speak to the hardware ..

  21. SCO motion addresses only 3 of 7 counts by gvc · · Score: 4, Informative
    I have not yet seen SCO's motion [can somebody dig it up?], but according to the press accounts, SCO is challenging counts 1 and 2 (for declaratory judgement) on the grounds that no actual controversy exists, and are challenging count 3 (false advertising violating the Lanham act) on the grounds that the Lanham act is superseded by the First Amendment. Even if these grounds, which seem thin to me, were upheld, four counts would remain. The seven counts laid out in the full text of Red Hat's complaint are:
    • Declaratory judgement under the copyright act.
    • Declaratory judgement under the trade secrets act.
    • False advertising under the Lanham act.
    • Deceptive trade practices.
    • Unfair competition.
    • Tortious interference.
    • Trade libel.
  22. An example of the kind of damage being done by earthforce_1 · · Score: 2, Informative


    Here is an interview with the MS rep in the persian gulf area. It may initially seem off topic, but if you read through it, he starts using the SCO lawsuit as an example of why how linux users don't respect IP. (Funny, no mention of the Eolas patents as an example of how MS respects the IP of others)

    (This interview is worthy of a story submission in itself, but I have given up submitting stories to /.)

    http://www.gulf-news.com/Articles/news.asp?Artic le ID=97436

    --
    My rights don't need management.
  23. Jreports vs GPL by brlewis · · Score: 2, Informative

    The GPL does not require attribution in their documentation or on their site.

  24. SCO utilizes Microsoft's (UNIX) technology? by Anonymous Coward · · Score: 1, Informative

    http://www.microsoft.com/presspass/press/1997/Nov9 7/scopr.asp

    REDMOND, Wash.-November 24, 1997 - Microsoft Corporation today applauded the decision of the European Commission to close the file and take no further action on a dispute between Microsoft and Santa Cruz Operation (SCO) involving a 1987 contract. The Commission's decision follows progress by Microsoft and SCO to resolve a number of commercial issues related to the contract, and upholds Microsoft's right to receive royalty payments from SCO if software code developed by Microsoft is used in SCO's UNIX products.

  25. Re:The community should realize ... by loginx · · Score: 5, Informative

    And in order to do this, all they have to do is show the court The letter sent from SCO to RedHat's clients... pretty sure that'll do it...

  26. SOP by AJWM · · Score: 2, Informative

    Filing a motion to dismiss is pretty much a reflex action in any lawsuit or trial. Sometimes the reasons can be pretty ridiculous, but a lawyer wouldn't be doing his duty if he didn't at least try. (On the "it never hurts to ask" principle.)

    And yes, this ranks as one of the more ridiculous.

    --
    -- Alastair
  27. dont diss NPR by cHiphead · · Score: 2, Informative

    NPR is actually damn good. Only folks that don't really listen to it think its boring. and its a LOT less boring than the 'pop rock' Clear Channel Stations all over town.

    --

    This is my sig. There are many like it, but this one is mine.
  28. "Put up or shut up" move by siskbc · · Score: 5, Informative
    When you sue for defamation, the burden of proof is entirely on the person who brings the suit, and not only do you need to prove that the defamation has damaged you, you also have to prove that the defamation was comitted willingly and intentionally.

    So, naturally for a libel suit there are generally three standards. 1) Did they say it? 2) Was it damaging? and 3) Is what they say factually incorrect?

    Here, the first is a foregone conclusion, and the second nearly is. The third is effectively the IBM case.

    But think about what that means. To prove that Linux DIDN'T steal from SCO, then either 1) SCO can actually turn over their allegations, for RedHat to refute, or 2) RedHat can subpoena the entire Sys V source code to show that any matches can be attributed to BSD or textbooks.

    This is exactly what SCO is trying to avoid - you know, an actual lawsuit? So I think this is more of a "put up or shut up" move by Red Hat than anything else. Effectively, it's a way of letting teh Open Source camp control the pace of the lawsuit that SCO has no intention of actually following through with. They're trying to use it for their pump'n'dump scheme, and the Open Source camp (here, Red Hat) is attempting to take that away, to force their hand.

    All in all, it's a damned good strategy.

    --

    -Looking for a job as a materials chemist or multivariat

    1. Re:"Put up or shut up" move by ShinmaWa · · Score: 2, Informative

      So, naturally for a libel suit there are generally three standards. 1) Did they say it? 2) Was it damaging? and 3) Is what they say factually incorrect?

      Actually, you are missing a big one.

      4) Was the statement made with fault?

      Given the public nature of the parties involved, the burden of proof for fault is called "actual malice". Actual malice requires that the alleged defamer either knew the it was false when it was said or recklessly disregarded the truth or falsity of the statement.

      This still might be the case in this instance or it might not -- I do not wish to hazard a guess. However, in this case, the simple fact that the statement was incorrect is not sufficent to prove liability in defamation.

      --
      The /. Effect: Thousands of users simultaneously accessing a site to not read its content.
  29. SCO screws over Ally in Holland by Lord+Custos · · Score: 2, Informative

    from the Linuxworld story about SCO and Dupaco
    http://www.linuxworld.com/story/34018.htm

    Imagine his surprise, then, when he received an e-mail last month informing him that in 30 days, the distribution contract would be terminated. According to Monninkhof, SCO is offering their country managers in Europe exclusive franchise arrangements in the countries they handle. This means that the existing distributors are effectively cut out of the picture, not even being given a chance to vie for the franchise rights. Worse, under a marketing program started by SCO several years ago, Dupaco has been providing SCO with their leads and customer contacts, meaning that the new franchise will be primed to raid Dupaco's customer base. Dupaco had felt comfortable doing this because they had been assured by the European SCO management that SCO would never move to a direct marketing model in the Netherlands.

    Puzzled to say the least, Monninkhof called his country manager, who basically told him he could remain as a zero-margin reseller, but the termination was a done deal. Since he was going to Lindon, Utah on other business, he called SCO to arrange a meeting. At first SCO agreed to talk, then changed their mind and told Monninkhof that there was no one at SCO to talk to and visitors were not being allowed in the building.

    Undaunted, Monninkhof showed up at SCO's doorstep anyway, and within seconds, security had appeared and escorted him off the premises. He was also given a letter indicating that his company was no longer welcome at SCO Forum (which was about to be held in Las Vegas, and was the other reason that Monninkhof was in the country.)

    In his own words humiliated, Monninkhof and his partner were halfway to Vegas to make their presence known, when they decided not to burn any bridges and returned to the Netherlands. However, they did decide to take legal action.

  30. 4 quarters of profitability part is true by Anonymous Coward · · Score: 2, Informative
    The SEC site (scroll down to "CEO Compensation")has more info, but it looks like the parent was right.
    From the site:

    In recognition of the leadership and guidance [sic - sorry, couldn't resist] Mr. McBride brings to the Company, he was granted 600,000 options to purchase shares under the Company's 1999 Omnibus Stock Incentive Plan. Of the options granted to Mr. McBride, 400,000 options vest 25 percent after one year with the remaining 75 percent vesting at 1/36th per month thereafter, until fully vested. Of the remaining 200,000 stock options granted to Mr. McBride, 50,000 options will vest one year from the date of the Company's first profitable quarter (as long as that profitable quarter is before Q4 of fiscal year 2003) and the remaining 150,000 options will vest one year from the date the Company achieves four consecutive quarters of profitability (as long as the fourth quarter is before Q4 of fiscal year 2004).

    So there's two interesting parts: the 150,000 share payoff that the poster mentioned, and there's also the vesting of about 8333 per month after the June 2003 (one year from when he was hired).