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SCO's Plan Examined

kevin@ank.com writes "In the best expose I've read since the original Halloween documents, Groklaw has links and analysis of Renaissance Ventures' rationale for investing in The SCO Group. Among other misrepresentations, SCO convinced Ren that SCO owned the root of the entire UNIX tree, and that Linux was just one branch of that tree. Linux gets a SCO tax... forever; or worst case, if Linux gets killed in the process, then so be it. Renaissance also estimated that IBM would have settled with SCO last April under the strength of SCO's claims, and the threat of terminating their UNIX license. Oops."

37 of 580 comments (clear)

  1. Wonder if they used this? by JLSigman · · Score: 5, Informative
    A friend of mine sent me this mind-boggling link, which is also supposed to support SCO's claim.

    --
    -jls
    Techno-pagan
    1. Re:Wonder if they used this? by Shivaji+Maharaj · · Score: 2, Informative

      Nothing new, already a part of the history.

      --
      We do not have a history of profitable operations. Our future SCOsource licensing revenue is uncertain.
    2. Re:Wonder if they used this? by Pius+II. · · Score: 4, Informative

      On the first page of this link, Linux is made out as a fork of Minix. This is total utter absolute bullshit. I won't even look at it further; this blatant misrepresentation of linux' heritage is just too conveniently placed as to accept this stuff as a reliable source.

    3. Re:Wonder if they used this? by interiot · · Score: 2, Informative

      Yeah, he has it online here: http://www.levenez.com/unix/. Though obviously without the prominence of SCO and without the inference that SCO owns anything and everything Unix related.

    4. Re:Wonder if they used this? by ccwaterz · · Score: 2, Informative

      Yep, SCO respects IP.... Eric Levenez states on his website. "You can freely use this diagram for non-commercial purpose. "

    5. Re:Wonder if they used this? by Picass0 · · Score: 2, Informative

      Here is an Un-SCOed version of that same map.

      http://www.levenez.com/unix/

      I know I'll be comparing the two for modifications.

    6. Re:Wonder if they used this? by fucksl4shd0t · · Score: 2, Informative

      Yeah, he has it online here: http://www.levenez.com/unix/. Though obviously without the prominence of SCO and without the inference that SCO owns anything and everything Unix related.

      It does show Linux being forked from Minix, which isn't true. Linus developed the early versions in a clean-room fashion.

      --
      Like what I said? You might like my music
    7. Re:Wonder if they used this? by Knuckles · · Score: 2, Informative

      Read this at the bottom of SCO's page: "Original UNIX history chart created by Eric Levenez. Copyright (C) 1996-2003, Eric Levenez. January 2, 2003. Used with permission."

      And go the Levenez's wallpaper site and search for McBride

      --
      "When I first heard Daydream Nation it quite frankly scared the living shit out of me." -- Matthew Stearns
    8. Re:Wonder if they used this? by c1ay · · Score: 2, Informative

      Problem is that they show Linux as a fork off of Minix when in fact Linus declared that his new kernal was free of any minix code when he introduced it to the world in comp.os.minix on 25 Aug '91... http://groups.google.com/groups?selm=1991Aug25.205 708.9541%40klaava.Helsinki.FI&output=gplain

      --

    9. Re:Wonder if they used this? by AndrewRUK · · Score: 2, Informative

      I've just looked through the two maps, and the only difference I can see is that SCO have Minix deriving from Sinix (which is shown as a derivitive of V7, 4.1BSD and Xenix 3.0) while the original map shows Minix as coming only from V7 & 4.1BSD. (Both Sinix and Minix are shown coming from the line from V7 to V8 after an input from BSD.)
      Although this difference initally appears to be a simple mis-reading of the arrows, it could be significant, since Xenix was bought by SCO.

      There aren't any modifications as such, but the highlighting that SCO have done is inaccurate. (Note, I haven't checked the entire SCOed version for differences, only the paths they have highlighted.)

    10. Re:Wonder if they used this? by AndrewRUK · · Score: 2, Informative

      Just to add to that, perhaps "deriving" (and so on) wasn't the right word to use, since "an arrow indicates an inheritance like a compatibility, it is not only a matter of source code." Which makes any claims based on the map even more flakey.

    11. Re:Wonder if they used this? by Anonymous Coward · · Score: 1, Informative

      The justifications given prior to the invasion were that Iraq was not complying with the UN mandates for disarmament, that we had clear absolutely incontrivertable intelligence that Iraq had WMD, and that they had the capacity to use WMD against the US, hence we had to invade to protect ourselves. We now see that although Hussein was occasionally giving the inspectors the runaround (though the obstruction had largely ended in the last rounds of inspections), we have no evidence whatsoever to support the intelligence claims , despite having troops on the ground who have looked at the sites where the WMDs were supposed to be. The astute poster above was really referring to a pattern of deceit that the Administration used to justify the invasion. The administration trotted out plenty of deliberatly deceptive pieces of intelligence prior to the invasion. There were the aluminum tubes, there were the magnets, there were various sattelite photos that we claimed indicated this or that. But they were all either lies or fantasy, and when called on poor intelligence methods such as using (poorly) forged documents as the basis for our claims, all the administration does is point to some other source of intelligence, and pretend that they are absolved.

      As for justifcations for the invasion - an invasion based on the fact that Saddam was a murderous thug, was certainly not adequate grounds, and while the fact was trotted out, it in no way was ever presented as a centerpiece for Bush's argument of why we had to invade. After all, if just being a generally cruel leader to your population was adequate reason for us to go around invading contries, there are plenty of far more egregious offenders around the globe than Hussein ever was, and we are not invading any of them.

  2. Article's Text by grasshoppa · · Score: 5, Informative

    When SCO CEO Darl McBride wrote his open letter last week, he seemed to indicate a hope there could be a viable future partnership between his company and Linux. There is more than a hint as to what that partnership might be like in two research papers prepared back in March and April by Renaissance Ventures, a VC firm that invested in SCO.

    The first document is an explanation of Renaissance's reasons for thinking SCO was a good investment. I know you've been wondering what in the world those folks in the stock market have been thinking. The second is an analysis of the SCO v. IBM lawsuit. They are both so blazingly wrong in both facts and conclusions that I fully grasp for the first time how some people may have invested in SCO, based on such misinformation.

    First, the investment document. It is based on SCO's telephone conference call in February of 2003. You can listen to it yourself on mp3 here. Renaissance thought it sounded like SCO's bottom line was about to get "prettier" because they believed what SCO reportedly told them in that phone call, namely that most companies were reacting to the new SCOsource licensing program in a positive way.

    Renaissance also bought the story -- hook, line and sinker -- that SCO owned the UNIX tree trunk, so to speak, and that all other versions of Unix were branches, or derivatives, off of their tree, including, so they imagined, Linux. (I'm using their language, by the way. They actually mean GNU/Linux, the kernel plus the applications, not Linux the kernel.) They planned on hijacking the GNU/Linux applications and if that meant the death of Linux, so what?

    That's their business proposition? And GNU/Linux gets what out of this, other than ripped off and ruined?

    Their original strategy was based on the fantasy that the world was clamoring for the ability to stay with UNIX and yet run GNU/Linux applications, and there they'd be, like a troll hiding under the bridge, ready to exact a toll on all those wanting to cross.

    SCO, in their daydream, thought they could be the gatekeeper making it possible for companies already on UNIX to sort of transition to Linux, which they knew everyone wanted to do, without leaving their UNIX environment behind. Next step? Backcharge for UNIX shared libraries they believed had been used inappropriately and start scooping the money up in royalties for UNIX code.

    Why they imagined companies would rather follow that convoluted, expensive route instead of just running Linux itself is one of those mysteries the tech community can never solve, because it's not based on technical realities but on financial yearning. The tech makes no sense at all. But the ka-ching started ringing in Renaissance's ears, and you know how compelling that can be, like when your telephone starts ringing and you think you have to answer it. But the whole structure is based on a lack of technical knowledge and not enough true facts and a grievous miscalculation about the market. If ever there was a situation illustrating the importance of CEOs and financial analysts comprehending tech, this story is it. Money got invested in a dream that isn't coming true.

    Let me let you read it for yourselves, because it's beyond my descriptive abilities to capture all the repulsive nuances, not that this is a subtle document. They begin by describing the conference call and then explain the math potential as they see it:

    "We believe management's forecasted $10 million of SCOsource revenue in 2Q represents near-term settlement of possible license violations in arrears (related to heretofore unlicensed use of the SCOsource shared libraries) from one or more large vendors of Linux solutions, but we are unable to glean more specifics at this time. . . . SCO management also stated . . . that the vast majority of interactions with customers and other software vendors with respect to the SCOsource initiative were positive. Our view is that lumpy, and possibly large, bookings of SCOsource license fees will continue for several quarter

    --
    Mod me down with all of your hatred and your journey towards the dark side will be complete!
    1. Re:Article's Text by grasshoppa · · Score: 3, Informative

      Could we please, just get the article and not the commentary? The entire idea behind kharma whoring with reproducing the article is to reproduce the /.'d article, not the article mixed with your commentary. I'm trying to get what they are posting not you. Grumble, original article /.'d, grumble.

      Indeed, the entire point of that post was to provide the article's text for those who didn't get to read it before it was slash dotted.

      So why would I add my own commentary in there?

      The article was reproduced in full, with NO additions or subtractions ( short of the lame filter requirements ) on my part.

      So next time, don't assume.

      --
      Mod me down with all of your hatred and your journey towards the dark side will be complete!
    2. Re:Article's Text by Anonymous Coward · · Score: 1, Informative


      Umm, the commentary is very likely from greplaw...

      dimwit.

    3. Re:Article's Text by kevinank · · Score: 4, Informative

      Here is the first of the two documents that Groklaw originally linked to: Handicapping the SCO vs. IBM Lawsuit

      --
      LibBT: BitTorrent for C - small - fast - clean (Now Versio
    4. Re:Article's Text by kevinank · · Score: 4, Informative

      Just found the second document as well: The SCO Group, Inc. Strong Buy

      --
      LibBT: BitTorrent for C - small - fast - clean (Now Versio
  3. There's also Didiogate by eddy · · Score: 4, Informative

    It's also been discovered that our favourite clueless "analyst", Didio, has known McBride and Stowell for some fifteen years. Yeah, not like that could affect her "analysis" or anything.

    ''Pass the hookah please!''

    --
    Belief is the currency of delusion.
    1. Re:There's also Didiogate by McSpew · · Score: 2, Informative

      Man, are you reaching.

      Laura DiDio knows Sontag and McBride, not Stowell and McBride, and she's known them for 15 years since they all worked for Novell.

      While her prior relationships with Sontag and McBride don't exactly encourage her to view them suspiciously, her reputation as an analyst is at stake if she doesn't hold Sontag and McBride to the same standards (higher, perhaps) as others whom she reports on and offers opinions about.

      In other words, just because she knows them from having worked at Novell, doesn't mean she's in bed with them to scare the world into paying SCO huge sums of money. Far more likely is that she believed what she was told because SCO told her a compelling story. That story may only be half true (i.e., the code's the same, but SCO didn't own the code, anyway), but she has no way of knowing that.

  4. Re:Send These bastards To Jail by Anonymous Coward · · Score: 2, Informative

    there = He is over there.
    their = Their days were numbered.
    they're = They are a bunch of uneducated morons.

  5. Linq. by Anonymous Coward · · Score: 4, Informative

    Crap, forgot to paste in the link.

  6. When Ren Ventures has to say... by morcheeba · · Score: 2, Informative

    While Groklaw has been slashdotted...

    From their "about us" page: (emphasis mine)

    We believe the best investment opportunities for realizing outsized returns migrate from sector to sector over time: from buyout, to venture, to public markets, to conglomerates or pure plays within certain industry sectors, in public or private markets - in our view, in no particular order but contrary to the most recent, firmly established trend. We believe investors have a choice: either following the trend in hopes of jumping off early and profitably, or investing contrary to trend in search of outsized returns.

    Renaissance subscribes to contrarian theory and believes the best opportunities now exist in microcap public companies that are orphaned from Wall Street with no institutional sponsorship. We will invest in mis-priced public securities and take an activist role in enhancing returns or sponsor management buyouts of undervalued public companies with high intrinsic value. Few investment groups are now equipped to source investment opportunities with enterprise values below $50 million, either due to their larger capital base or otherwise, which presents an opportunity for us. Aberrational pricing in the public markets often correlates with a despondent, disheartened and perhaps uninformed shareholder base, which helps reduce premiums paid while acquiring securities or entire companies.


    If they were contrarian, I would think that they would be selling and go against the people who have bought the price up. But, they said they were looking for a whacked-out company, and they found one. Who knows.. they might buy out management and install some honest people.

    But, they said it best.. SCO is at an aberrational price, but its abnormally high, not low. Hopefully they got in in January and aren't in it for the long term.

  7. Re:Reminds me of the Cartoon... by MojoMonkey · · Score: 3, Informative

    Here you go:

    http://freeserve.i-resign.com/images/mhproof.gif

    --

    ----- "Blame the guy who doesn't speak English." -- Homer J. Simpson
  8. Complain about SCO to FTC and BBB by Slashdolt · · Score: 3, Informative

    If you haven't already complained about SCO's conduct to the Federal Trade Commission and/or Better Business Bureau, you really should do so.

    The BBB complaints become a permanent part of a corporation's record. Enough complaints can make a difference.

    www.bbb.org
    www.ftc.gov
    (Simply click on "File a complaint" in both cases)

    I have filed with both. I believe that SCO's conduct is essentially the same as trying to sell licenses to the Brooklyn Bridge and then threatening those that don't buy a license with lawsuits.

    Make a real difference by allowing your voice to be heard. File a complaint.

    --
    Slash

    1. Re:Complain about SCO to FTC and BBB by Quarters · · Score: 5, Informative

      The BBB is great if you want to check out a plumber, HVAC company, or other small business. It is totally worthless for large corporations. Why? Because it is funded by corporations, therefore it is biased. Besides, the BBB has no legal ability to sanction, criminally charge, or otherwise take to task a company that receives negative comments. The best it can do is tell a requestor how many and complaints a company has received and how severe they are. That's great if you need a sound bite for the evening news, but totally useless for policing corrupt businesses.

  9. mirrored at live journal by SLot · · Score: 4, Informative
  10. Re:Reminds me of the Cartoon... by anandrajan · · Score: 3, Informative

    I think you mean the famous cartoon by Sidney Harris.

    --
    Anand Rangarajan anand@cise.ufl.edu
  11. Care to compare to the original? by k98sven · · Score: 5, Informative

    The orignal tree.

    As others have noted, this tree really means nothing in terms of actual code.
    For instance, Linux appears to be an offspring of Minix, which in turn is an offshoot of the original Unix.

    Now, anyone who's read the preface to Andy Tanenbaum's book (where the entire Minix code is listed) knows that Minix is a clean re-implementation of unix, and contains no UNIX code whatsoever.

    Linus, in turn, used some Minix code to get started with Linux, but this was quickly replaced. Linux hasn't contained any Minix code for years.

    So this chart, although correct with respect to 'influence' or 'inspiration'
    has nothing to do with actual code. Naturally, it doesn't provide any real support to SCO's claims.

    That would be something like Digital Research suddenly claiming ownership of Windows, since it's based on DOS, which in turn was based on QDOS, which was a CP/M clone.

    1. Re:Care to compare to the original? by nathanh · · Score: 4, Informative
      Linus, in turn, used some Minix code to get started with Linux, but this was quickly replaced. Linux hasn't contained any Minix code for years.

      Linus used Minix as a development platform but Linux has never contained any Minix code, ever. Minix code was encumbered by a "look but don't touch" license. Well, sort of. You could touch but you couldn't redistribute the modified version. This draconian license was the reason for the Minix/386 patchset that was very popular before Linux took over. Andy refused to integrate the 386 patches into Minix because it would ruin Minix as a teaching aide, but the 386 patches fixed many of the limitations in Minix (eg, maximum 64kB executables) so nearly everybody applied them. Linux could not have used any Minix code as even the earliest version of Linux was GPLd and this was incompatible with the Minix license.

      "Linux is derived from Minix" and "Linux once contained Minix code" are myths. I've seen both myths repeated fairly often but I think this is just confusion because Linus cross-compiled his kernel and gnuserspace from a Minix platform. The easiest way to disprove the myth is to ask Linus himself.

      "Although linux is a complete kernel, and uses no code from minix or other sources, almost none of the support routines have yet been coded. Thus you currently need minix to bootstrap the system. It might be possible to use the free minix demo-disk to make a filesystem and run linux without having minix, but I don't know..."
      Linus Torvalds - Release Notes 0.01

      By "bootstrap" he means create the Minix filesystem and copy across the Linux kernel and gnuserspace. Linux used the Minix filesystem before EXTFS was written but it was a clean-room implementation. No Minix code was used in the Linux implementation of minixfs.

      FYI, I've read the entire Minix source tree (I own one of the earlier editions of the book), I've been using Linux since 1992, I've read one of the earliest Linux source trees, and I've never seen any matching code.

  12. that is the original article... by stoborrobots · · Score: 2, Informative
    See also here ...

    google cache

  13. Re:Our company is switching again. by psgalbraith · · Score: 4, Informative

    Yeah, I see a few of these posts from ACs.

    I'll bet these posts are planted by people hoping to make a buck out of SCOX stock or something.

    There's a no way a serious company would spend an incredible amount of time and money migrating away from Linux based on SCO's threats.

  14. The original papers by selan · · Score: 2, Informative

    are available here at Renaissance Ventures site. Pretty amazing stuff. They even have a table calculating how much money they think SCO will make with an IBM settlement.

  15. Re:The view from a large enterprise by GoRK · · Score: 4, Informative

    It's called "Piercing the Corporate Veil" and unless you guys did something really really sneaky this tactic is all but useless to protect you from litigation.

  16. Wrong page to start on. by Picass0 · · Score: 3, Informative
    On this page he explains:

    Note 1 : an arrow indicates an inheritance like a compatibility, it is not only a matter of source code.

    Note 2 : this diagram shows complete systems and [mirco]kernels like Mach, Linux, the Hurd... This is because sometimes kernel versions are more appropriate to see the evolution of the system.

    Note 3 : I have now a page where I explain how I build this chart.



    I pray SCO marches this document into court. It does not mean what they think it means.
  17. From a certain point of view... by TFloore · · Score: 4, Informative
    So is SCO really alleging that there's tons and tons of lines of UNIX code?

    SCO's position on this is... well, it seems to go something like this:

    The original UNIX licenses most companies signed with AT&T stated that modifications to the UNIX codebase would be treated as derivatives of UNIX, and is owned by the UNIX copyright holder (now SCO).
    Therefore, anything any UNIX licensee installs in their UNIX instantly becomes a derivative of UNIX, and owned by SCO.
    Therefore, any code contributed by any UNIX licensee from their UNIX codebase to Linux is therefore SCO's property.
    Therefore, by including this code in Linux, Linux becomes a derivative of UNIX, and becomes owned by SCO.

    Now, this is really... creative reasoning at just about every step of the way. But it does seem to explain SCO's statements about millions of lines of code that they own in Linux. Basically, they are claiming that any code that comes from a UNIX licensee is their intellectual property, because it is a derivative of the AT&T-licensed UNIX code.

    Or at least, I think that's the story this week.
    --
    This is my sig. There are many like it but this one is... Oops. Frank, I've got your sig again! Where's mine?
  18. Re:SCO's plan by WCMI92 · · Score: 4, Informative

    You are assuming that a JUDGE can see through SCO's claims. Keep in mind, on the Federal bench, we have "great minds" like:

    The 9th "Circus" in San Francisco, with it's stupid pledge ruling, and initial ruling that they had the power to STOP AN ELECTION FROM TAKING PLACE, before reversing themselves

    Judge Lewis Kaplan of Time Warner (he worked for a firm that represented them prior to being placed on the bench by Clinton), responsible for the deCSS decision, and added the ability to BAN HYPERLINKS to the DMCA...

    Judge Lee West, who seems to think that telemarketers have the right of free speech on the property of others, against their explicit will...

    I'd not be CERTAIN about anything our fucked up legal system does, until it's DONE...

    What is more certain than anything is that SCO will likely run out of money before the IBM suit goes to trial, if enough counter suits are filed against them.

    --
    Corporatism != Free Market
  19. Re:SCO's plan by Anonymous Coward · · Score: 1, Informative

    Actually, there is an amendment for that... the first one. Try reading the Bill of Rights sometime???

    Amendment I

    Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

    What does that bold print say? Why, I do believe that specifies separation of Church and State...