Slashdot Mirror


SCO Approaches Google About Linux Licenses

MSBob writes "Seems that SCO is seriously hinting that their next victim is going to be Google. SCO said that they held what SCO described as "low level talks" with Google executives with regards to licensing SCO's alleged intellectual property within the Linux kernel. The full article is on Forbes.com." The Reuters story is on Yahoo!, too.

25 of 591 comments (clear)

  1. One thing I've learned by Anonymous Coward · · Score: 4, Insightful

    Is that you don't try to extort Google. They're willing to fight back.

    1. Re:One thing I've learned by LostCluster · · Score: 4, Insightful

      Yes, but no... Google is strict about not allowing political causes, no matter how justified, to throw around their search results. The only pressure they'll bow to is a law, which only impacts the www.google.xx address for that country code, and not any other.

  2. As soon as.. by Karamchand · · Score: 4, Insightful

    ..more large-scale firms will just say foad to SCO, SCO's share value will drop because the shareholders will realize it's not that easy to get the money from the licenses. As soon as share value drops SCO has not as much money for lawyers anymore.

  3. Obvious distraction... by 4lex · · Score: 4, Insightful

    Since on monday we are going to see some legal action, I suppose this is the usual some hot air to distract the attention.

    I, however, wonder if this really can affect a judicial decision... I think it won't.

    --
    My journal. Mainly about freedom.
  4. Extortion by young_hacker_1991 · · Score: 5, Insightful

    This is extortion, plain and simple. With an IPO around the corner, SCO knows that the mere hint of potential litigation can seriously hurt Google. Darl McBride is no more than a hoodlum. I hope he gets what he deserves, but history has shown that as long as they're incorporated, gangs can do what they please.

    1. Re:Extortion by John+Hasler · · Score: 4, Insightful

      > How will this hurt Google's IPO?

      They might have to put it into the prospectus as a contingent liability. This could easily drive the offering price down by far more than whatever it would take to buy SCO off.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  5. Context by warmcat · · Score: 4, Insightful
    This slashdot post adds the context you need to understand the wild statements coming out of SCO.

    Partial quote: ''Anytime the price dips too low for public consumption or a planned sale, they can make another outrageous announcement and pump it back up. ''

    To understand SCO you need to stop taking their announcements seriously and look at them as a two-year-old misbehaving to get attention from its parents.

  6. Will they cave in? by Albanach · · Score: 4, Insightful
    With rumours of an imminent IPO flying round the Internet and in the financial press, you have to wonder how Google's execs will react to an SCO approach. Any pending litigation could put a dent in their offer price - even a few percent makes a big difference when you value the company at $12 billion.

    Google have over 10,000 linux servers in their cluster. That's a licensing fee of $7 million. It might be a lot easier for them just to write the cheque.

    Assuming the Google execs will also have a significant share in the company, any reduction in the company value could hit them in the pocket personally.

    1. Re:Will they cave in? by bwhaley · · Score: 4, Insightful

      you have to wonder how Google's execs will react to an SCO approach.

      Hmm.. I don't think they'll pay up, for a couple of reasons.

      First of all, the infamous Joe Sixpack has never heard of SCO, perhaps not even of Unix or Linux. He hasn't been paying any attention to this ridiculous lawsuit and never will. Google, on the other hand, is a household name. A lawsuit from a company with a dubious background (much like the SearchKing fiasco) is not going to make much of a difference in Google's IPO.

      Secondly, Larry Page and Sergey Brin, Google's founders (and executives!), aren't your average dummy. These guys are know what BS SCO is making up and I'm confident that they'll react appropriately.

      --
      "I either want less corruption, or more chance
      to participate in it." -- Ashleigh Brilliant
    2. Re:Will they cave in? by cyberformer · · Score: 4, Insightful
      It all depends on whether Google's founders plan for it to be a real company or just another doomed dot-com that makes them rich in an over-hyped IPO and then disappears. Paying SCO would be very stupid in the long-term, because it will:
      • Show that Google is an easy mark for millions of other scammers, willing to pay out for supposed copyright violations without evidence. Google's position is further weakened by the fact that the Google cache (on which its search engine depends) really can be seen as violating the letter of the copyright law.

      • Demonstrate that Google's "don't be evil" maxim is just PR, turning everyone in the IT industry against the company. Thus is actually important in the short-term too, because dot-com IPOs depend mostly on public sentiment about a company, not rational revenue projections.

      • Cost Google a lot of money. SCO has repeatedly stated that it views contracts as a weapon, something that should warn anyone against entering into any kind of agreement with them. $7 million is just the start.

      Having said all that, I don't think Google will buckle. It has a history of standing up to lawsuits
  7. Re:Good lord by Zocalo · · Score: 4, Insightful

    Never mind Google's IPO, what's even closer is SCO's show and tell in the IBM case on Monday. I suspect that SCO's clarification that the rumours about Google are true is just to give them a positive spin going into the markets on Monday morning so that soften the fall that's going to come later in the day...

    --
    UNIX? They're not even circumcised! Savages!
  8. Re:Low level talks: by JordanH · · Score: 5, Insightful
    Don't hold your breath waiting for those Press Releases.

    Google would be nuts to do this.

    • Everyone would hate them for caving in.
    • It would negatively affect their IPO as investors would not know what kind of liability Google was carrying in the form of periodic license renewals.
    • IANAL, but wouldn't buying an SCO license for IP that they are already holding under GPL potentially negatively affect Google's future ability to release GPL'd code based on the same body of work. It would seem that buying the SCO license is an implicit admission to SCO's rights here.
  9. Re:mod madness - why is parent modded "troll"? by gcaseye6677 · · Score: 4, Insightful

    Assuming a company did decide to pay SCO a 'go away fee', I would think they would force SCO to agree to a non-disclosure as well. A reputable company would not want to be considered part of the SCO scam, which they would be if they were identified as a licensee. Look at what people have been saying about Microsoft and Sun for obtaining an 'SCO IP license'. They don't seem to care about the perception that they are in on it with SCO, but many companies catering to Linux enthusiasts would care.

  10. Re:Why does it seem... by JaredOfEuropa · · Score: 4, Insightful

    Why? Because they want to be bought outright, perhaps :)

    Traditional IP extortion wisdom holds that you go after the smaller fish first, build up a 'war chest' with your 'winnings', and then take on the jackpot companies.

    SCO went after IBM first, probably in hopes they'd be bought. IBM didn't bite and called their bluff. Now they are going after companies whose core products rely on Linux. Red hat, and now Google. Since IBM and Red Hat are comfortable with the idea of duking it out with SCO in court, I doubt that Google is going to meekly pony up the license fees.

    --
    If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  11. Re:Low level talks: by Krow10 · · Score: 4, Insightful
    Right. Those Fortune 500 companies aren't stupid. That's why they would rather pay the relatively paltry sum than waste the lawyer's and executive's time with something whose best outcome is saving the company $1000.
    I've seen about 1000 people implicitly claim that large companies are stupid, and want to encouage frivolous lawsuits by rewarding publicized threats of frivolous lawsuits with money. Scumbags would be lining up around the block to sue Google if they gave SCOX one red dime. Additionally, I imagine such a transaction would involve a contract with SCOX; a company whose executives say things like "Contracts are what you use against parties you have relationships with... ." Yeah, you really want to do business with a company like that. Not.

    Cheers,
    Craig

    --
    Corollary to Clarke's Third Law: Any technology distinguishable from magic is insufficiently advanced.
  12. I think you meant to say... by spike2131 · · Score: 4, Insightful
    --
    SpyDock: Scientific Python in a Docker container
  13. From the Forbes article: by lfourrier · · Score: 4, Insightful

    SCO sued International Business Machines Corp. last year and sent notice to thousands of companies to pay to use Linux. SCO said it now has Unix license agreements with more than 6,000 companies.

    I think this part, while technically exact, is written in a way to make believe 6000 companies paid unix licence for the right to run linux, notably because of the use of now in the second sentence. Can someone enlighten me, please ?
    1) As english is not my mother tongue, my paranoia about SCO surfaced, and in fact, the meaning I perceived is not perceptible by native english speaker.
    or
    2) Forbes want SCO to succeed (again all those commies who believe in free things (imagine free, as in : no market, and no need for economic journal ( and they are again IP, too, and we are producer of IP, so we must fight them (but of course, every OSS person knows that OSS exist because of IP, not against it (and my teacher always said you should not imbricate parenthesis when writing literary text, contrary to mathematics (but perhaps this text is not very literary)))))).
    or
    3) The Forbes journalist, as many many many other, just copied/pasted a press release without checking, perhaps even without understanding.
    or
    4) Some other reason I didn't think about.

    So, what's your advice?

  14. They better not! by TheLastUser · · Score: 4, Insightful

    Google OWES Linux. They have profited greatly from having Linux available for their company. Now they have to stand up for the community, they have an ethical obligation not cave into the obvious bully tactics of sco.

    If they sign some slimy deal for a $1 with sco then they are saying that Google is the sort of company that will sell out the OSS community just to save a few dollars. This sort of action would only lend support to sco's unproven, unsubstanciated, undisclosed ascertions of sco code in the kernel.

    I don't think Google is that sort of company, and I don't think that the people that run Google are that sort of people. I expect that Google will soon release a public statement akin to "We will not be paying SCO license fees until they provide proof that there is sco code in the Linux kernel".

    1. Re:They better not! by lisany · · Score: 5, Insightful

      Google OWES Linux.

      Hey did you hear that there is this GREAT search engine that lets you searth the web, USENET, Images, News stories and more -- For FREE?! Man, I tell you whoever provides that service -- at no cost to the end user -- is doing the world a great favour.

      Anything Google "owes" to the community they have given back with more than most GPL-users can claim to have given back.

  15. No, Not Even. by ackthpt · · Score: 5, Insightful
    SCO seems to have decided that they would prefer to put the final nail in their coffin from the inside.

    Laugh. This is pure blackmail. It's clearly aimed at the upcoming IPO of Google and the last thing a company facing before an IPO is a legal battle, hence they might just throw a bone to SCO to sweep the problem under the rug. Well planned move on SCO's part.

    --

    A feeling of having made the same mistake before: Deja Foobar
  16. Re:STILL boggles my mind by Frodo420024 · · Score: 5, Insightful
    I know that the judge has required that SCO show proof (in a couple of months), but why did the judge give them a couple of months?

    Actually, that was just one month. And it's up on Monday :)

    What's wrong with: "show proof now, or I dismiss the case with prejudice"? Was the judge required to give SCO extortion time, or did the judge just think "gee, they seem honest, I'll give them a few months before requiring that they show proof"?

    The judge was to grant one or more of the 'Motions to compel discovery' (two by IBM, one by SCOX). IBM basically said in theirs "Get us evidence of wrongdoing". SCOX said "Show us your Unix that we may be able to find some of your wrongdoing."

    The hudge easily gave IBM what they had asked for, and gave a time frame for that. One month to produce the evidence (over the holiday season - not much :), and a couple weeks for IBM to digest that. Dismissing the case was not an option at this point. Has nothing to do with the judge favoring SCOX - she was very obviously unimpressed by their behaviour. Read up on Groklaw if you need.

    (How did that comment I'm replying to get rated 'Insightful'??)

    --
    I'm in a Unix state of mind.
  17. Re:STILL boggles my mind by Frodo420024 · · Score: 5, Insightful
    I still don't get it. They were the ones suing, shouldn't it be expected that they have their evidence ready to present when the case first started?

    Well, when you are filing a case, there are certain mechanisms for getting all relevant information out during the case, also stuff that's normally not available. In criminal cases you get search warrants and stuff, in civil cases you have subponaes to request additional information from various parties. In this manner you can get at relevant evidence that would usually be hidden in company vaults etc.

    I could understand giving the defense time to gather evidence, but the plaintiff should be expected to have their evidence ready to present.

    They should present enough evidence to prove the case has substance. SCOX had all along been pleading they'd show the evidence in court, and didn't yet. IBM asked them to quit stalling and play their cards, to produce all relevant evidence. The judge gave SCOX 30 days to do that with particularity, meaning they have to tell exactly what lines in what files are copied. SCOX had given IBM a huge stack of Unix code (which IBM already has from their Unix license), expecting IBM to figure out the exact problems in the code. That's not good enough in court.

    SCOX had in return asked IBM to come up with all their various Unix code (all of it!) for examination. That one is still undecided on, but looks like a 'Fishing expedition', where SCOX hopes to stumble upon something to substantiate their case. That's not acceptable behaviour in court. If IBM has anything 'fishy' in their code (SCO Unix stuff copied to Linux), they might even be able to invoke the 5th Admendment and refuse to produce self-incriminating evidence. Don't think they would, though, would look pretty bad :)

    Seems to me at least that a plaintiff showing up without their evidence is pretty good grounds for dismissal. Is it really generally acceptable to bring suit before you assemble your evidence?

    Yes and no, as above. You should produce enough to make it believable that you have a case, but discovery is relevant to bring out the exact nature and full amount of the wrongdoing, if any. SCOX is being given the benefit of doubt, which is needed for a fair trial - but if they don't produce anything real soon, they'll be in LOTS of trouble.

    Anyway, the IBM lawyers didn't even request a dismissal of the case at the first hearing. They're probably holding that one off until the game is so far advanced that it'll be an obvious thing to do, which is not the case right now. Since SCOX didn't show their 'evidence' yet, we still don't know if there is any substance, and potentially there could be. Now, if (when) they don't come up with anything, IBM will probably request the court to dismiss the case with prejustice. Which is much more likely to be granted when SCOX has had plenty chance to come up with evidence. IBM has good lawyers and is not in a hurry. It's more valuable for them to take the time to get prejustice (or even extreme prejustice) along with the dismissal, barring the gate for similar cases in the future. Speeding the case is not that important, it's better to win it with great force.

    >> How did that comment I'm replying to get rated 'Insightful'??

    Maybe because there wasn't a "+1 Good Question" modifier? I was ranting a bit, but I really was also seeking information.

    Got it :) I always look in vain for the "-1 Wrong" modifier. Probably "+1 Interesting" would've be better anyway.

    --
    I'm in a Unix state of mind.
  18. No, this is great! by Slur · · Score: 4, Insightful

    Google has a famous name, and anything they release to the press is going to get attention everywhere. All they need to do is refuse to comply, explain in a press release what SCO must do to bolster their claims before they will comply, and they will educate some of the public mind.

    Google pretty much has to respond to this publicly, since they do have that IPO pending.

    I think SCO has made their biggest mistake this time.

    --
    -- thinkyhead software and media
  19. Would be a bad move on Google's part to knuckle. by Ungrounded+Lightning · · Score: 5, Insightful

    This is pure blackmail. It's clearly aimed at the upcoming IPO of Google and the last thing a company facing before an IPO is a legal battle, hence they might just throw a bone to SCO to sweep the problem under the rug. Well planned move on SCO's part.

    Given the huge number of servers that Google is running, the huge size of its expected IPO, and the likely effect of a miniscule license fee on their future extortion attemps, I doubt the carnivores at SCO could manage to keep their demands down to a thrown bone.

    The trick to pulling this off is to keep your demands to a minimum - like less than the lawyer time to look at them - and to be the only player in the game. Like the clutch of lawyers that bought up the patent on the XOR cursor, then for a decade or two systematically sued every computerish IPO in Silicon Valley over it (whether they had anything to do with graphics or not) and settled for something like $10k - effectively imposing an "incorporation tax".

    When one extortionist is panhandling a bag of peanuts it might be expedient to throw one to him. If he's asking to become a large, permanent hemmorage in your cash stream (or if there are a large crowd of these ticks sucking your corporate blood), paying the danegeld is a bad move.

    I suspect that that's what SCO thought it was doing to IBM - but they asked for too much, and/or got in the game too late and ran into an IBM policy of delousing rather than scratching the itch (due to IBM's long history and repeated experience with such extortion).

    But given SCO's track record for lack of savvy on these issues (i.e. taking on the IBM 500 lb Gorilla followed by a series of other stupid moves), I see no reason for them to suddenly wise up and avoid opening yet another front in the Unix Second World War (AT&T vs. UCB being the first).

    If they do, I'd bet that Google will fight - and probably ask the court to put it all on hold until the SCO/IBM case is resolved - or perhaps combine them, if the form of SCO's demands is such that this is an option.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  20. What floors me... by An+Anonymous+Hero · · Score: 4, Insightful
    ...is the spin they manage to get from journalists. The Reuters wire consists of 8 sentences. Of those, four quote SCO claims with direct attribution -- that's OK. But wouldn't one expect the four others, where the journalist speaks, to provide some balance and context? Well, here they are:
    #3 -- Linux (...) is based on the widely-used Unix platform.
    Stated as fact. As if no one ever argued that it's only "based" insofar as it reimplements POSIX and other public domain standards and APIs.
    #5 -- SCO sued International Business Machines Corp. last year and sent notice to thousands of companies to pay to use Linux.

    #6 -- SCO said it now has Unix license agreements with more than 6,000 companies.

    Falsely suggests that the 6,000 licenses in #6 (legacy Unixware?) were sold as a result of the notices in #5.
    #8 -- Markets are abuzz with increasing speculation that Google will seek an initial public offering sometime this year.
    This not-so-subtly concludes that SCO may be about to hit the jackpot. Is this whole argument supposed to be journalism?