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Red Hat Cornering SCO in Delaware

LordNite writes "There is a great article over at Groklaw on the latest motion in the RedHat's Delaware suit. RedHat has filed for the start of discovery. Looking at the list of documents RH is requesting it looks like SCO will finally have to come clean. Naturally SCO is trying to stall. It looks like the beginning of the end of this whole mess." The faster this can get into court and be over, the better.

40 of 356 comments (clear)

  1. Linux Lottery? by taviso · · Score: 4, Interesting

    45. All documents concerning a Linux Lottery or the phrase the "Linux Lottery'.

    Thats a new one on me, anyone have any clue where this phrase comes from or what it means..why are RH interested in it?

    --
    ex$$
    1. Re:Linux Lottery? by taviso · · Score: 4, Informative

      Ahh, Found the answer in a court transcript, here.

      In sum, SCO's campaign is designed both to slow the growth of
      LINUX, and to reverse its failing fortunes by convincing LINUX users
      that they need to pay SCO a license fee to use the lower-cost LINUX
      operating system. As SCO's own representatives have proclaimed, if SCO
      is successful at this effort, it can add "billions" of dollars in
      undeserved revenues to its declining bottom line. Additionally, SCO's
      campaign is designed to further what, upon information and belief, has
      been referred to as the "LINUX Lottery" -- the ability to reap personal
      profit by carefully timed purchases of SCO stock.

      --
      ex$$
    2. Re:Linux Lottery? by Gzip+Christ · · Score: 3, Funny
      Ahh, Found the answer in a court transcript, here.
      Damn. I was hoping it was this type of lottery. Oh well - in that case, I'm no longer rooting for Darl to win.


      --------
      The fake Gzip Christ isn't not user number ~0xA6CA7

    3. Re:Linux Lottery? by hey · · Score: 2, Funny

      There's a new Slashdot trick.
      Pose and interesting question (+5 interesting)
      then answer it (+5 informative).

  2. SCO does'nt seem to be in a hurry by gokulpod · · Score: 4, Insightful

    The article mentions that SCO is trying to stall as much as possible. Probably the executives at Santa Clara have'nt sold off all their shares yet. Once that is done, you can be sure to see the cases flying off the shelves.

    --
    My mom never taught me to sign.
    1. Re:SCO does'nt seem to be in a hurry by mst76 · · Score: 3, Insightful
      The article mentions that SCO is trying to stall as much as possible. Probably the executives at Santa Clara have'nt sold off all their shares yet. Once that is done, you can be sure to see the cases flying off the shelves.
      Also, McBride will get a large payoff if he manages to get 4 consecutive profitable quarters. He only has 2 more to go.
  3. Red Hat by micaiah · · Score: 3, Insightful

    Sure, Red Hat has a vested interest in defending Linux, however, there are more companies like Suse, who could take up the fight, but aren't. Kudos to Red Hat. This is one reason why I still buy and support Red Hat.

    1. Re:Red Hat by Xanthian · · Score: 3, Informative

      Suse has already openly supported RH's direction. I'm sure one of the reasons they're not more active in the fight is that SCO has already been stopped in Germany.

    2. Re:Red Hat by nutshell42 · · Score: 3, Insightful
      SuSE's a European company and afaik in most countries here there are injunctions in effect preventing SCO from FUD-spamming like they do in the US.

      Why should SuSE do the work for Red Hat when Red Hat's twice as big and much more dependant on the American market (also afaik =)

      jm2

      --
      Don't think of it as a flame---it's more like an argument that does 3d6 fire damage
    3. Re:Red Hat by micaiah · · Score: 4, Informative

      "Why should SuSE do the work for Red Hat when Red Hat's twice as big and much more dependant on the American market (also afaik =)" Because Suse would be defending Linux as a whole e.g. the kernel, which is under attack. It has nothing to do with Red Hat's distro.

    4. Re:Red Hat by MadMoses · · Score: 5, Informative

      SUSE has already successfully filed a suit against SCO Germany a long time ago, with the result that SCO Germany is not allowed to say that Linux includes code that infringes on SCO's copyrights.

      Here's Suse's press release (german).

      --

      Do not be alarmed. This is only a test.
    5. Re:Red Hat by Czernobog · · Score: 2, Funny

      Because SuSE can depend on the German law system to stop SCO's bogus claims, whereas RedHat have to play the nonsensical, imbecillic system you Yanks got.

      --
      /. Where the truth
    6. Re:Red Hat by MKalus · · Score: 2, Insightful
      And sure, Suse is a German company, but don't think you think their business plan depends heavily on purchases made in the United States?


      I am replying here to what I think you were asking:

      No, I don't think SuSE relies heavily on the US market, they do a lot better in Europe then they do in the US (and most likely will for some time), sure they have deals with IBM and such, but I have a hard time finding SuSE in North America, that's a nieche market for them.

      In the States right now you have RedHat and IBM, bringing SuSE into the mix won't make a chance, they're better off defending their home turf.
      --
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    7. Re:Red Hat by Zocalo · · Score: 3, Interesting
      SUSE has already successfully filed a suit against SCO Germany a long time ago

      Indeed, and unlike Red Hat, SUSE didn't wait for a lawsuit to arrive before sucessfully going to court for their injunction. I guess that lends further credence to the maxim that the best defense is a good offense, so let's hope that the strategy pays off for the ACCC down in Oz too. ;) Still, every little bit helps with bleeding them dry. The more court cases SCO has to deal with the less chance that Darl will get his Golden Parachute for four profitable quarters in succession.

      --
      UNIX? They're not even circumcised! Savages!
    8. Re:Red Hat by gmkeegan · · Score: 4, Funny

      ... but I have a hard time finding SuSE in North America, that's a nieche market for them.

      I think you mean Nietzche market. (That which does not kill -9 me, makes me stronger?)

    9. Re:Red Hat by Anonym0us+Cow+Herd · · Score: 2, Informative

      and unlike Red Hat, SUSE didn't wait for a lawsuit to arrive before sucessfully going to court for their injunction.

      Please clarify what you are saying? What lawsuit did Red Hat wait for to arrive before RH sued? RH is the plaintif in their suit.

      Not relevant to my question above, but FYI, I buy and run SuSE, and don't particularly care for RH's distro -- in fact, I almost gave up on Linux after installing RH 5.2 having been a longtime Mac user, no KDE, etc. After trying SuSE 5.x in 1999 I was immediately able to use it. My Point: I'm not one to favor RH over SuSE. But in fairness, I think RH deserves real credit here for what they have done vs. SuSE. Maybe they've just done the same thing, and SuSE's is over sooner due to a saner legal system. But RH's fight will cost more, and is likely to accomplish more, given that RH is making other claims about their business being damaged, etc. not just the "put up or shut up" argument.

      --
      The price of freedom is eternal litigation.
    10. Re:Red Hat by antiMStroll · · Score: 2, Funny

      Given Nietzche's military style of writing, kill -HUP makes morre sense. :)

  4. OT: Stowell unix licenses are revokable! by Anonymous Coward · · Score: 2, Interesting

    stowell - Unix licenses are revokable And this from a company insisting that the GPL is invalid whilst distributing GPL licensed software. Hmmmmmmmmmmmmm

    1. Re:OT: Stowell unix licenses are revokable! by ninthwave · · Score: 3, Insightful

      Note in the quote of the license by nice SCO people it says

      If LICENSEE fails to fulfill one or more of its obligations under this Agreement, AT&T-IS (AT&T Information Systems) may, upon its election and in addition to any other rememdies that it may have, at any time terminate all the rights granted by it hereunder by not less than two(2) months' written notice to LICENSEE specifying any such breach, unless within the period of such notice all breaches specified therein shall have been remedied; upon such termination LICENSEE shall immediately discontinue use of and return or destroy all copies of SOFTWARE PRODUCTS subject to this Agreement.

      I think there is an argument on the phrase in bold I added. SGI says they have remedied the breaches SCO says it is not enough.

      --
      I was thinking of the immortal words of Socrates, who said: "I drank what?" - Chris Knight (Val Kilmer)- Real Genius
  5. Darl here... by Mr.+Darl+McBride · · Score: 2, Funny
    As this thing unravels, there's really only one question left unanswered:

    Does anyone know of a country with no extradition treaties? Chris wants to go to the South Pacific, but as a speaker of Asian languages, I was more thinking....

  6. Can the judge tell if SCO is trying to stall? by tehanu · · Score: 5, Interesting

    I am not a lawyer so maybe some people with more experience can tell me - is it usually obvious to a judge (it may be obvious to us in the case of SCO, but that's an entirely different matter) if someone is trying to stall for time, how do judges usually look upon this sort of behaviour (do they shrug their shoulders or get pissed off?) and if they do get annoyed what can they do to the stalling party?

    1. Re:Can the judge tell if SCO is trying to stall? by Entrope · · Score: 5, Informative

      The court and representation for each side talk and negotiate deadlines for particular stages of the trial. I imagine that there are common standards for each stage. The judge and Red Hat have interests in seeing Red Hat's case executed in a timely manner, so it would be somewhat difficult for SCO to extend the deadlines greatly.

      It is possible to file motions or amended actions later to delay or reset the clock. If the judge believes they have merit, it will go through[1]. If a party to a lawsuit submits many such motions and they are largely frivolous or unwarranted, it may count as vexatious litigation. If a judge considers something vexatious litigation, he or she will generally sanction the offending party. Sanctions can many forms[2].

      IANAL, etc.

      [1]- For example, SCO recently got a delay in its trial versus IBM so that it could perform due diligence and research in their counter-defense.
      [2]- Monetary fines are common, but others are possible. The US prosecutors in the Zacarias Moussaoui were barred from seeking the death penalty or introducing broad classes of evidence when the government refused to comply with a court order to give him direct access to certain terrorist suspect-detainees.

  7. SCO execs cash in on suit spotlight by Solokron · · Score: 5, Informative
    --
    30% off web hosting. Coupon code "SLASHDOT".
  8. Could this massively implode on SCO? by swb · · Score: 4, Interesting

    Is there a chance that this could massively implode on SCO?

    I'd wager there must have been some "UNIX" code in Linux at one time, albeit not intentionally and perhaps only small chunks for SCO to have made any claim at all.

    But let's presume that RH's discovery finds the code was relatively small, inserted accidentally or under false pretenses, and not part of the current development of Linux.

    Could SCO then be shown to be grossly misrepresenting their claims and mooting any licensing claims they made and perhaps open SCO's executives to claims of fraud, stock maniplation, or at least highly vulnerable to civil action from companies who could claim their misrepresentation had a chilling effect on their business?

    If someone can get the man behind the curtain exposed, this could all come crashing down around the SCO guys..

    1. Re:Could this massively implode on SCO? by badasscat · · Score: 3, Interesting

      The worse that could happen is that they fold, maybe less of a loss to these guys than you think..

      No, the "worst" that can happen is they get busted for running a pump and dump scheme by the SEC. Not to mention corporate fraud, insider trading and god knows what else; I'm sure there are a variety of charges that could be leveled if it turns out they were intentionally misleading investors for personal gain. This is serious stuff; this is not just slap on the wrist territory. We're talking some real prison time here.

      If these allegations by SCO do all turn out to be completely false (as is likely), and it does turn out that SCO knew it (50/50 - I think it's just as likely they're just totally clueless), then the SEC will have to get involved in order to send a message to the rest of the corporate world that this sort of thing cannot be tolerated. If SCO execs actually succeed in taking a failing company and turning it into a personal gain for them through fraud, there will be no end to these sorts of actions by other executives at other failing companies in the future.

    2. Re:Could this massively implode on SCO? by crawling_chaos · · Score: 2
      then the SEC will have to get involved in order to send a message to the rest of the corporate world that this sort of thing cannot be tolerated.

      What planet are you from, and what color is the sky there? All Darl and company need to do is make sure their contributions to the major political parties are up to date.

      Is Ken Lay in jail yet? How about Bernie Ebbers?

      --
      You can only drink 30 or 40 glasses of beer a day, no matter how rich you are.
      -- Colonel Adolphus Busch
    3. Re:Could this massively implode on SCO? by swb · · Score: 3, Insightful

      The difference being that Ken Lay and his company are from Texas, where the current President is from and who was Governor. Lay and Enron were big contributers to the GOP and Bush for a long time, and likely circulated in the same social circle as the Bush family (oil/energy, Texas, wealthy, politics, the overlap is massive).

      The Enron prosecution isn't done and Lay isn't out of the woods yet. There was just recently a news blurb about Lay refusing to hand over documents in his possession, citing the 5th Ammendment.

      Darl is probably the only "name" exec at SCO and is a "name" only for creating this fiasco. While probably "connected" politically in the same way all wealthy CEO types are, I highly doubt he has or can even buy the juice that Lay had with the GOP pre-Enron. Not from the same state or industry as many Bush insiders, nor does he have the non-business political standing.

      Furthermore, he's created enemies at bigger businesses like IBM that have heavier hitters than him, with longer, deeper political connections and from bigger states, mitigating any potential political advantage he *might* have had.

      And remember, Sam Waksal from Imclone is *already* in the can, Martha Stewart faces a fraud trial that could land her in the can, too, and the guy from Tyco I believe will likely enjoy the a nice long membership at the Orange Jumpsuit Country Club.

      Overall, I think McBride is *just* the kind of sacrificial lamb that the Justice department and SEC would like to see turning on a spit over an open fire. Not politically connected enough to be a threat to them and reaping major political benefits for the overly-pro-corporate Bush administration when he gets a public hanging.

    4. Re:Could this massively implode on SCO? by badasscat · · Score: 2, Interesting

      Actually, I think McBride is too small a fish for the SEC to get their panties in a knot over. Couple that with the fact that he's fighting those "Linux hippies" that the *IAA are so incensed with,

      I'm not sure why people here seem to think the SEC and states' attorneys general (like good old Eliot Spitzer here in NY) will not get involved here. SCO is not fighting "Linux hippies", SCO is fighting IBM, one of the largest companies in the world, one of the Dow 30, #9 on the Fortune 500. You think any self-respecting regulator is going to allow one of the drivers of our economy to be bullied by a crap little company like SCO through fraudulent means? You're right - nobody in government cares about SCO, but they sure as hell care about IBM.

      If it takes one of Spitzer's independent probes to prod the SEC along, great. Once small-time investors get screwed (as will happen once SCO's stock tanks), and IBM starts complaining to the government that they've been wrongly accused and have the court documents to back that assertion up (in the form of either a victory by IBM or capitulation by SCO that we're all sure is coming), then I fully expect to see things happen.

  9. Protecting trade secrets by sjbe · · Score: 3, Interesting

    I think it is also funny that they are concerned about "trade secrets" when everyone knows how Unix works. There is no big mystery.

    Disclosure IANAL...

    Don't be quite so quick to jump on this one. While I agree with you completely in principle, SCO does need to be careful in reality. Trade secrets are just that, secrets. Once they are discovered, they are no longer entitled to trade secret protection, meaning they cannot sue the releasing party if they were released illegally. Typically if there is a real trade secret, most reasonable judges will (rightly) make some accomodations for that fact.

    Presumably SCO has a few trade secrets even though you are right that we basically know how all their stuff works. Just because we can figure it out, doesn't necessarily mean it isn't protected as a trade secret. So it's not surprising that they would be careful about trying to ensure they aren't unecessarily made public. Any company with proprietary assets in a legal battle would do the same. You can argue that they don't deserve such protection anymore because of what they are sueing for (and I wouldn't argue with you over it) but you should not be surprised that they are seeking trade secret protection. It's just a normal part of the legal proceedings.

    1. Re:Protecting trade secrets by schon · · Score: 4, Insightful

      Once they are discovered, they are no longer entitled to trade secret protection, meaning they cannot sue the releasing party if they were released illegally.

      The thing is - anything that's in the Linux code base by definition is not a secret.

      Nobody's telling SCO "show all of your code" - they're saying "which lines of the Linux source do you believe is infringing?"

      The only reason not to answer that question is that there is no infringing code.

  10. Re:What it is to be /.'tted by Skater · · Score: 2, Funny

    That's why most of us don't read the articles!

  11. Not true by Tuckdogg · · Score: 2, Informative

    Discovery is usually the most important part of a legal case, and it's especially important in this one. SCO, thus far, has offered tons of wild accusations about IP violations, misappropriation, drunken debauchery, etc. against IBM and the Linux community generally. They have offered almost nothing to back it up with, and what little has leaked out has proved to cut heavily against their court cases.

    The fact that Red Hat and IBM are both filing motions to compel discovery is proof that SCO taking the same track in their legal battles. They are trying to stall because they don't want to show the code; they don't have anything to show. They're just praying that IBM will put them out of their misery and buy them out. And, by the way, one more indication for the non-legal world that, in case you didn't already know, SCO is full of shit and going to lose. Badly.

    --
    Tuck
    Tuck's Journal.
  12. Groklaw Article by Mostly+a+lurker · · Score: 5, Informative
    I found a backdoor to this (sorry about the formatting):

    SCO Files 2nd Motion Asking the Red Hat Judge for a Delay on Discovery

    Thursday, October 09 2003 @ 04:25 AM EDT

    There has been quite a lot of activity in the Red Hat case.

    SCO filed a Motion to Dismiss the action in its entirety, as you know, and Red Hat filed its answering brief. But since we last reported on this case, Red Hat initiated discovery. They asked SCO for documents and for answers to some pointed questions. IBM is forcing SCO into a corner in Utah, and Red Hat is forcefully and aggressively trying to do the same in Delaware. You'll see, I think, that we haven't been wasting our time telling the world the details of this story. The big picture is that Red Hat is telling SCO to prove their allegations with specificity. They also want all their source code, and I'm sure you can figure out what they want to do with it, when I tell you that they asked for the complete Linux Kernel Personality source code, among the other products for which they have requested source code.

    They also want to hear some details about the relationship between Canopy and SCO, including any stock or intellectual property transfers. They want SCO to "identify by title, version, module(s) and line(s)" what they think is misappropriated in any way or in violation of any of its rights. They ask for the details of Microsoft and Sun's licensing arrangement with SCO. They want to know who those 1500 companies were that got the letter, and what happened next. They want to know exactly what SCO has filed a copyright on. They want all the details of SCOsource, including all the folks who have seen the code SCO has been showing under the NDA and what they saw, and any other contact with any Linux users about supposed liability. They want to know how they compared the UNIX and Linux code to determine infringement. They want to know if they've done any comparisons of the two and what the results were. They want to know all the stock or industry analysts SCO has met with or talked to and what was said. In short, it's like the kind of fantasy a guy might have about a bully getting his at last, because they asked them everything we wanted somebody to finally ask SCO and make them answer.

    SCO responded to Red Hat's discovery requests by filing a new motion, and it has told the judge, in a Motion to Stay Discovery Pending Resolution of Motion to Dismiss, it would like a delay until after the first motion, the Motion to Dismiss, is ruled on. They surely don't seem in any hurry to get this matter resolved. They argue that because they are simultaneously providing discovery to IBM (of course IBM says they aren't seeing anything, as I recall), they can't possibly do both, and anyway, if they win their motion, it'd be moot. In short, they would very much like not to have to do this, presumably so that if they win the Motion to Dismiss they can continue to refuse to give any particulars about their case. If the judge doesn't grant their Motion to Dismiss, they'd like the judge to give them 30 days to provide all the discovery items.

    Both of Red Hat's discovery documents are attached to this SCO Motion to Stay Discovery, and they begin with definitions, like what is "intellectual property" within the context of the document, and instructions, like how to identify the writers of documents, etc.. The first document begins on page 7 of the pdf, but we find out what Red Hat is asking for on page 12, where the list begins.

    Red Hat in its "First Request for the Production of Documents and Things" asks SCO to produce the following documents:

    1. All documents concerning the subject matter of the Complaint.
    2. All documents concerning any customer, or potential customer, of Red Hat.
    3. All communications between SCO and Red Hat or any employee of Red Hat.
    4. All communications between SCO and any user or potential user of a Linux product, including Red Hat LINUX product, concerning any rights to Linux, or UNIX th

  13. Legal Reason for Delay by judmarc · · Score: 2, Informative

    SCO has asked the judge to rule on their Motion to Dismiss first, which is fair, and is almost certainly what will happen. The Motion to Dismiss says that even if everything Red Hat says is true, it still doesn't amount to an infringement of Red Hat's legal rights. So the judge has to rule on whether Red Hat's case will amount to anything *even if they prove everything they say* before giving Red Hat a chance to get that proof through discovery.

  14. Re:That one little irritating line... by Arker · · Score: 2, Insightful

    Actually they have several lines of defense.

    First, no actual breach has been demonstrated, and TSG seems to be working overtime to avoid demonstrating any breach. IBM has been saying from day 1 "show us the breach" but TSG won't.

    Second, in the case of the SGI code in particular, even if it was a breach (which it clearly wasn't,) even the appearance of a breach was remedied as soon as it came to light. No thanks to TSG, btw.

    Finally, there are many amendments to that original contract signed later which override that clause. There's nothing illegal about that. McBride and co. like to trot out the main contract but ignore all the sidebars and amendments. A court is not likely to do the same.

    --
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  15. Re:Keep the bad news coming by sjbe · · Score: 2, Insightful

    Hate to break it to you, but more often than not scox goes up on bad news. Remember SCOForum, when scox showed the code, and it was debunked within an hour? Scox share price went up 50%, to about $15/share, in the next trhee sessions. Then the share price went up another 50% to about $20/share in the two weeks or so.

    And on September 26 when IBM announced their countersuit SCOX dropped from around $17 to $13.8 a few days later. The difference? The debunking of the code didn't show up on Reuters which investors are far more likely to read than Slashdot. The crowd driving SCOX's price are not likely to be techies and won't be hanging out here. If "news" doesn't show up on the newsfeeds they check, it may as well not have happened. Besides, the only "debunking" that really matters is the one IBM (and RHAT) will do in the courtroom.

  16. Re:Scox yesterday.... by Rogerborg · · Score: 3, Insightful

    > I predict that today the stock value will mirror yesterday, it may even end slightly up. This is because little or none of the news read here at /. and other such places is getting filtered through to wall street.

    Actually, the reason is that you buy stock like SCOX as a speculation, not an investment. It's a simple theory that boils down to this: no matter how dumb it is for you to own the stock, someone dumberer will buy it off you for more.

    So far, that seems to be a pretty accurate assessment.

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  17. You Got to Know... by Esion+Modnar · · Score: 2, Funny
    ...when to hold them, know when to fold them, know when to walk away, know when to run. (from Kenny Rogers, The Gambler)

    OK, SCO. Enough talk. Let's see your cards.

    --

    They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
  18. Re:Speculators and Bubbles by Rogerborg · · Score: 2, Funny

    > Yes and those dumber people are speculators. It's called a bubble and it bursts when there is nobody left who is willing to continue speculating

    Sure, but the market is rising right now, so it will continue to rise for ever, right? I mean, we'll never have another of those annoying bursts, surely?

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  19. German Legal System by steve_l · · Score: 2, Insightful

    Is this the same legal system that let the Asterix cartoon get an injunction on Mobilix. And something to stop people linking to the .nl site that showed people how to sabotage railway lines?

    All legal systems have flaws, they are just in different places :(