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HP Offers Linux Purchasers Indemnification

PnViking writes points out this story in the Detroit News, writing "HP is now covering any claims from SCO if you bought Linux and have a support contract from them: '"We will provide full indemnity across the entire suite for any SCO-related action," said Martin Fink, HP's vice president of Linux. "If (customers) were to get sued by SCO, we would take over their defense and assume liability on their behalf."'" The catch is, you have to be running it on HP equipment ;)

36 of 326 comments (clear)

  1. Proof by artios · · Score: 5, Insightful

    Now that is what we call good solid evidence (as if we didn't have enough) that SCO is pulling stuff out of it's royal... A big company like HP, doesn't just all of a sudden decide it's going to defend against a lost case.

    1. Re:Proof by AlricTheMad · · Score: 5, Insightful

      Actually I would wager that they are covering thier bottom line.
      Tough for them to sell HP Hardware and Linux solutions if buys are worried about getting sued if they do buy.

      AlricTheMad

    2. Re:Proof by Anonymous Coward · · Score: 5, Insightful

      I'd say there's bits of both in there. They're certainly mentioning it publicly as a marketing thing. "we'll cover you, that's a HP advantage" etc.

      It's a risk/benefit thing. HP get the benefit of the world knowing they're covered under HP. HP know the risk SCO's claims mean anything is less than that benefit.

    3. Re:Proof by Anonymous Coward · · Score: 1, Insightful

      I wish all the customers were as thoughtful as the one you described now. If more and more customers become aware, these scare mongering busines parctice will cease to exist.

    4. Re:Proof by Mostly+a+lurker · · Score: 4, Insightful
      Your Sun story is a classic!

      However, I see nothing unreasonable about HP's position that they will indemnify only their own customers. What are they supposed to do: provide a contact e-mail address for free legal assistance, to be used by people who have downloaded Mandrake to run on their IBM PC and then subsequently received a threatening letter from SCO?

    5. Re:Proof by Zak3056 · · Score: 5, Insightful

      Proof of the fact that all commercial players are using scare tactics to sell kit, that is. Those vendors that offer "indemnification" provided you use their hardware or whatever catch there is, are just as bad as SCO

      Err... what exactly are you looking for HP to do? Indemnify EVERYONE who runs linux?

      Of COURSE they're limiting this to people who have HP hardware--thats what makes them HP customers!

      --
      What part of "shall not be infringed" is so hard to understand?
    6. Re:Proof by junelson · · Score: 4, Insightful

      How is this a negative? HP is stepping forward and resolving any customer concerns about running linux on HP systems. The more companies that follow suit, the less revenue SCO will be able to generate from linux licensing fees. And publicly it makes it clear that HP does not think SCO has a case.

      Comparing HP to SCO is ridiculous. Would you have them assume responsibility for every linux user? No CFO in their right mind would assume that risk for no possible return. Put aside your "all corporations are evil" fanaticism and see this for what it is - a positive move by a large equipment vendor that will help dismiss the scare tactics taken by SCO.

    7. Re:Proof by WCMI92 · · Score: 3, Insightful

      "well, I am not stating that HP should indemnify everyone, i am saying they should not get on the indemnification bandwagon in the first place. It lends cedibility to what is for all intents and purposes a scam to begin with. It also makes HP look tacky"

      How? HP is more or less defending EVERYONE by doing this. Anything gleaned from one suit can be used by all...

      I suspect that if SCO finds some end user who doesn't have the funds to defend himself, the Red Hat fund, and others will step up to the plate.

      Besides, the chances of SCO filing suits against end users is nil right now. It's all a threat that makes great FUD for their Microsoft and Sun masters...

      SCO doesn't have the money to file lawsuits like the RIAA does, in many jurisdictions, and to defend themselves against the counterclaims.

      They also can't risk one of these suits coming to an actual TRIAL either, especially before the IBM suit is heard (and disposed of).

      SCO's threats are total vaporware. Their ROI value to their MS and Sun investors is to keep the PERCEPTION of threat as high and continual as long as possible.

      --
      Corporatism != Free Market
    8. Re:Proof by SmallFurryCreature · · Score: 2, Insightful
      You may be right. But such tiny little details matter a lot. That HP is offering it is nice. Not major. Not a huge step forward for the penguin. It won't cure hunger, aids or pimples. But it is a nice gesture.

      It shows that a really big company that has a lot on its mind, a company that could easily just fall at Microsofts feet is ready to stand behind linux.

      They are risking something here. No matter how ridicilous we may find the case by SCO none of us will have a single word to say about. It will be up to a judge or 12 idiots. We all know how well cases like this have gone in the past.

      So SCO could win. SCO is still saying that on the 1st of oktober it will start sueing individual users. Wich is the reason why noone has received a letter yet. It may not happen but when it does HP has just said it will do all the legal stuff on behalf of its customers.

      That is sure to build a lot of goodwill with HP customers and the general world. Certainly a lot more then Sun recently got. (Sun spokesman: We take your money then laugh at you)

      Pity that the kayak I got yesterday is second hand. Then again after what I did to replace the fritzy powersupply (no longer delivering enough juice to bootup reliably) I would have voided the warranty anyway :)

      Anyway, nice move HP.

      --

      MMO Quests are like orgasms:

      You may solo them, I prefer them in a group.

  2. Finally! by scsirob · · Score: 4, Insightful

    This is a good sign. I bet HP wouldn't do this without their lawyers being absolutely certain they have nothing to fear. Their conclusion must be the same as ours...

    --
    To Terminate, or not to Terminate, that's the question - SCSIROB
  3. Reinsured by pork_spies · · Score: 4, Insightful

    Presumably HP are doing this because they can now lay off the risk with an insuring for a low enough price to make it worthwhile. So this doesn't just mean HP are slam dunking SCO, but others - who have no direct IT interests - are doing it too. We are winning.

    1. Re:Reinsured by KillerLoop · · Score: 5, Insightful

      I'm afraid we are losing.

      Color me paranoid, but maybe this was just some targeting practice at hurting Linux through the legal system. Up till now it was a roaring success. It stirred up a lot of fuss, and some are putting Linux on hold until the matter is resolved. Not a small feat for an obvious non-issue like the SCO claim.

      Just keep on bombarding the community with stuff like that, and Linux will get tainted with "perennial legal problems". A library here, some kernel code there... and even if every single one of the accusations turns out to be utter bullshit, many people may get the impression that it's only a matter of time until one of the claims hits home and they get hurt.

    2. Re:Reinsured by Jerry · · Score: 4, Insightful
      I'm afraid we are losing.


      I'm afraid you are wrong.


      Linux will get tainted with "perennial legal problems".


      That would be true only if people suspected that SCO had some justification and a chance to win their suit. The way it's turned out (past tense) McBride shot his mouth off one too many times and now people see him as merely bombastic. The big turn-a-round came when he showed 'infringed code' at his not so big West Coast affair last month, and it was quickly shown to be BSD-type legacy code. Combine that with legal-types stepping into the fray with analyses of SCO's chances of proving their claims and you have a complete route. With SCO being counter-sued for IP theft they don't have enough money in their coffers (nor in the Canopy Group coffers) to sustain a legal battle against the charges, and they've exhausted all takers for their bogus Unix 'license'. MS and Sun can only do that once, and no one else is interested.


      The only other group of people who 'think' SCO has a chance are those dedicated Microsurfties who push MS PR for personal profit while claiming to be unbiased 'analysts'.


      HP came out with this PR tactic because they know the battle is over and SCO has lost. Watch other companies take the same pledge in order to keep their Linux market alive.

      --

      Running with Linux for over 20 years!

    3. Re:Reinsured by theflea · · Score: 4, Insightful

      I also cringe when I see linux's reputation tarnished, and so much FUD being passed around, but there's a flip side to the legal challenges.

      If the GPL and Linux can withstand the next few years in court, a new image might emerge. People might look at linux as "the OS everyone tried to kill, but couldn't".

      With so many twists and turns recently, I wouldn't dare predict what will happen, but I am generally optimistic.

      Oh, and the HP thing? It's like selling meteor strike insurance to all my friends & acquaintances. I mean, there is a chance that SCO could successfully sue a corporate linux user, but a very small one. Plus, didn't SCO say HP wasn't a target on their radar screen because HP UX was a properly licensed unix from way back?

  4. Good move on HP's part... by Bvardi · · Score: 4, Insightful

    They're going to get some good press out of this, pick up some new customers (especially on the corporate side) and at the same time generate some goodwill for themselves.

    AND at the same time they likely won't have to invest much in legal work - SCO doesn't really have a case (as has been demonstrated) and doesn't have the money to take on another big lawsuit anyways (think they would go after HP while the redhat/ibm lawsuits are out there? Not likely... their warchest has to be getting a bit less weighty these days)

    1. Re:Good move on HP's part... by Ngwenya · · Score: 4, Insightful
      ObDisclaimer: I work for HP, but this is a purely personal statement. HP's got nothing to do with it - in fact HP's attitude is made explicit from Martin's statement - it's for the courts to decide SCO's claims. HP will not prejudge the courts, but HP explicitly does not acknowledge the claim.

      SCO would have spun this anyway they want. If HP didn't offer indemnity for this vacuous case, then SCO claims HP is running scared of the court action and is letting its users hang in the wind.

      If, on the other hand, indemnification is offered, then HP lends validity to SCO's claim.

      In other words:

      HP: We don't assign any validity to this case.

      SCO: Aha! So you admit that there is a case. Hey everyone, HP says there is a case! Y'hear - HP says SCO will win its case!.

      Sorry, but these guys are in spin overdrive; they can't even tell truth from lies any more.

      --Ng

  5. a question? by linuxislandsucks · · Score: 1, Insightful

    considering that suing any users of copyrighted works whether its software, books or etc for infringment of the creator of that work is a considered not to have alegal standing and be a frivilous lawsuit..

    What exactly is Hp indemifying since it woudl automatically win any lawsuit in this case given the conditions above?

    --
    Don't Tread on OpenSource
    1. Re:a question? by stereoroid · · Score: 2, Insightful

      It's not just about the legality of a Linux user's position, it's the legal cost of defending that position. HP's indemnification means that its users won't have the prospect of legal costs to worry about. It is the USA, after all, where your status in court depends on what you can afford to pay a lawyer.

      --
      (this is not a .sig)
  6. finally by Palverone · · Score: 2, Insightful

    Finally a company with enough courage to protect their customers. I wonder if anyone else will follow?

  7. superb news by ben_of_copenhagen · · Score: 2, Insightful

    HP must be rather confident that SCOs claims wont hold up in court. I feel somewhat reassured by that.

  8. Join the club by Anonymous Coward · · Score: 1, Insightful

    If IBM and RedHat did this for their customers, more corporations would implement Linux and less money would go to SCO because of nervous corporate lawyers telling their IT departments to hold off or pay up.

  9. Re:Wow by Boiler99 · · Score: 5, Insightful

    About that target though...HP has been respected in the business information services industry for quite some time (although merging with Compaq perhaps tarnished that, but hey that's another story ;) So really, companies who are not so familiar with SCO other than their recent run of litigations will see the lawsuit as more frivolous, and start to ignore it more and more.

    Really, the greatest side effect of major players lining up against SCO is that it will help undo the bad rep SCO gave Linux with the PHB's who don't know anything about tech other than what they see in the Wall Street Journal.

  10. Competitive Wager... by SwansonMarpalum · · Score: 5, Insightful

    It's entirely possible that HP is making a calculated gamble that they can steal IBM's potential Linux customers out from under them by offering indemnification, even if they aren't 100% sure they have a defensible position.

    Of course this brings up the point I was discussing with a friend of mine the other day: SCO's entire case for licensing binary versions of portions of the Linux kernel relies on forgiving them for ignorantly distributing these portions under the GPL. If such a courtesy is extended to SCO due to their ignorance, I doubt it would be denied to customers who were ignorantly violating SCO Group's so called intellectual property.

    --
    "Give away the stone, let the oceans take and transmutate this cold and faded anchor." - Maynard James Keenan
  11. Thank goodness for competition by squarooticus · · Score: 2, Insightful

    The only reason HP is doing this is to attract more consumers to their own platform/hardware. And you know what? Who cares. The result is the same: indemnification for potential new users means SCO's FUD will have less of an effect on Linux adoption.

    Yet again, Ayn Rand is shown to be correct.

    --
    [ home ]
  12. The quicker this get to court the better. by gsdali · · Score: 3, Insightful

    This decision will hopefully manoeuvre SCO into the courtroom (or into shutting up) and finally being forced to tell people what IP has been infringed, if any.

  13. PR stunt by deltagreen · · Score: 2, Insightful

    HP probably doesn't think SCO has got a chance at all, and see the possibility for getting some good PR (they certainly need it, as they are not doing too well in the computer market), both in the IT community and the public at large.

    Heck, if they are lucky, maybe even a few people will be lured into buying a HP computer. :)

  14. Catch?? What catch? by goldspider · · Score: 4, Insightful
    "The catch is, you have to be running it on HP equipment ;)"

    Perhaps my coffee hasn't kicked in yet, but why would anyone believe that HP would assume liability for people who may not even be customers? If they're going to be doing your company this favor, shouldn't it at least prove it's an HP customer? That seems pretty reasonable to me!

    --
    "Ask not what your country can do for you." --John F. Kennedy
  15. Good for HP but ....... by holy_fire · · Score: 4, Insightful

    This may a good move for HP to attract or steal customers but I'm not sure if this is good for Linux as a whole.

    First this may strengthen and not weaken SCO's claims ("If SCO is wrong as anybody claims why do they offer me indemnification?")

    Second I think that smaller companies have a harder sell now to bring Linux to customers since they don't have the deep pockets to give the same indemnifications for their customers.
    If you can only sell Linux with an indemnification program only the Big Boys can do it and that is not something I want to see.

    --
    bye, Chris
    1. Re:Good for HP but ....... by Mostly+a+lurker · · Score: 4, Insightful
      First this may strengthen and not weaken SCO's claims ("If SCO is wrong as anybody claims why do they offer me indemnification?")

      Sorry, but this is totally incomprehensible to me. How can HP saying "we are sufficiently confident of the weakness of SCO's case that we are willing to assume the supposed liability for free" possibly strengthen SCO's case?

  16. Let's not forget... by RoLi · · Score: 4, Insightful
    ... that SCO so far didn't dare to sue anybody for using Linux.

    They did sue IBM for violating "their" IP which has nothing to do with Linux or the GPL.

  17. Its Obvoious HP is covering their asses by CakerX · · Score: 1, Insightful

    While everyone who has a tech sense about them knows SCO's case is full of shit, many non-tech savy CEO's are going to lean away from linux now, HP knows this, since they sell linux servers, they have to do something to keep customers from shying away.

    Protect them from the big bag wolf that will never strike. Following IBM's lead, they decided to cover what ever linux claims are resolved from the case. ITs obvious they're will be none. This isn't a big company being conseincious, as much as it is a big company covering its ass.

  18. It's about the Benjamins. by Jaywalk · · Score: 2, Insightful
    Somebody finally did the math. Take the cost of defending companies against SCO's meritless lawsuits (A) and compare it to the amount of money to be gained from clueless PHBs who want some guarantees when they buy their Linux boxes (B). If A is greater than B, then indemnify your clients. Since it looks like nobody is paying the SCO license fee (except Sun and Microsoft), SCO's warchest for lawsuits will continue to dwindle, further reducing the cost of A.

    Sure, their execs are making a bundle, but they're not going to use it to launch lawsuits that would force them to reveal what code they're claiming to own, especially since they know they wouldn't win.

    --
    ===== Murphy's Law is recursive. =====
  19. Re:This explains the drop in stock price by Anonymous Coward · · Score: 1, Insightful

    SCO's stock price took a little 5% dive
    How it can be? We can expect a press conference of McBride this afrernoon...

  20. Re:IBM? by killmenow · · Score: 2, Insightful
    I don't know if HP bought a SCO license; but, I think it's a little early to start jumping on the "This is awesome! We're winning!" bandwagon or the "HP sux0rs! They're in bed with SCO and they're just doing this to make IBM look bad!" bandwagon.

    Of course, this being /., most of us will immediately jump to one side or the other...when what needs to happen is for us to stay calmly in the "undecided" middle and ask a lot of questions. To wit:
    1. What is HP's motivation for this announcement?
    2. Why now? Or maybe put better: What changed in the past 24/48/72/etc. hours that made HP decide this was a good business move when it wasn't before?
    3. What other questions should we be asking?
    4. How can we get answers to these questions?
  21. Re:Not quiet. by Stephen+Samuel · · Score: 2, Insightful
    It was perfectly possible to go for 2 out of 3. For example "Linux distribution from HP and support contract" should have been enough,

    Well, yes, it's entirely possible. On the other hand, why should HP subsidize your purchase of a Dell CPU with a legal indemnity? This is not an altruistic idea on their part. They intend to profit from the indemnity. Software hardware and service contracts are all profit centres.

    The nice thing about this is that it puts the shoe to the likes of MS saying "so why don't Linux vendors indemnify their customers if this is a slam-dunk for Linux?" Well, we now have at least one large manufacturerer effectively saying "We think that SCO's blatherings are bogus -- and we're willing to put our money where our mouth is."

    --
    Free Software: Like love, it grows best when given away.
  22. Yeah, SCO's word means a lot by roystgnr · · Score: 4, Insightful

    SCO has no intention to sue Linux end-users

    Originally, SCO had no intention of suing anyone at all:
    According to McBride, "obviously Linux owes its heritage to UNIX, but not its code. We would not, nor will not, make such a claim."

    But at the beginning of August:
    "The legal liability for Linux clearly rests with the end user."

    "We have the ability to go to users with lawsuits and we will if we have to."

    McBride and company have never kept their story straight in the past - expecting them to do so now that they've made another statement we like would probably be overly optimistic.