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IBM, Intel Set Up $10m SCO Defense Fund

An anonymous reader writes that the "NY Times reports that a group of companies, led by I.B.M. and Intel, plans to announce today that it is setting up a $10 million legal defense fund to help pay for the litigation costs of corporate users of the popular GNU/Linux operating system if they are sued. ZDnet also has a story on this." otisaardvark points out that "The fund is to be administered by OSDL (Open Source Development Labs) and so, amongst other things, could bankroll legal costs for Linus."

33 of 300 comments (clear)

  1. Ah what it is to have friends by Space+cowboy · · Score: 4, Insightful

    Big, Rich friends :-))

    Of course, IBM and Intel aren't doing this out of the kindness of their hearts, but it's still a nice gesture, 'cos it works for us (well, them, I'm not a kernel contributor :-)

    Simon

    --
    Physicists get Hadrons!
    1. Re:Ah what it is to have friends by diersing · · Score: 5, Insightful
      I think it works for the greater good as well.

      If SCO goes after google, a well recognized name outside tech circles and gets thumped in it's first big, real court battle... it may force the "SCO Get Rich Train" right off the tracks before it really gets started.

      I'm not a kernel developer either, but if Linux costs me $799 per proc to run, Windows and Apple become the cheaper alternative.

    2. Re:Ah what it is to have friends by weileong · · Score: 4, Insightful

      I'm not a kernel developer either, but if Linux costs me $799 per proc to run, Windows and Apple become the cheaper alternative.

      Why else do you think MS told SCO to set it at that price point? :-)

  2. An old proverb comes to mind. by Locky · · Score: 4, Insightful

    The enemy of my enemy is my friend.

    1. Re:An old proverb comes to mind. by dubious9 · · Score: 2, Insightful

      Quite right. Even though IBM has seen that it is better to be loved than feared, it wasn't too long ago when they took the Machiavellian stance.

      Remeber when the term "FUD" was invented, that it was in reference to IBM. Remember that IBM agressively takes advantage of the lax patent system, procuring IP whenever and wherever possible. Just because the Gaint is stepping on our enemies doesn't mean he'll won't accidentally (or not) step on us later.

      --
      Why, o why must the sky fall when I've learned to fly?
    2. Re:An old proverb comes to mind. by GSloop · · Score: 2, Insightful

      Just like Saddam?

      Just like Bin Laden?

      Just like Noriega?

      Just like Ferdinand Marcos?

      Just like Pinochet?

      (Man, that "Proverb" must have come from the inverse of Solomon.)

      Cheers,
      Greg

  3. timing by parnold · · Score: 4, Insightful

    the timeing of this is interesting with today being the day that SCO has to show evidence in court of IBM's infringment on their copyright.

    --
    this sig intentionally left blank
    1. Re:timing by Krow10 · · Score: 5, Insightful
      What I find amazing is the big stink that SCO brought up about indemnification, and protecting your customers against legal action. Even Laura DiDio, our favorite shill, brings up the indemnification issue time and time again.

      Now look what's happening here. OSDL is indemnifying linux users against legal action (more than an MS EULA can do, by the way), and SCO is... what's that? they're making noises about suing their own UNIX licensees?

      What's really really funny to me is that this is the worst of all possible worlds for SCOX -- it takes the wind out of the extortion aspect of this fiaSCO ("pay up, or da Boies will sue youse") and it doesn't give them the leverage against a company's insurance provider of unlimitted liability that "indemnification" would have -- they actually have to sue an *indemnified* HP customer, or they have to sue *many* linux end users before they can start squeezing anyone on legal costs. As my 1yo daughter would say, Uh-Oh!

      Cheers,
      Craig

      --
      Corollary to Clarke's Third Law: Any technology distinguishable from magic is insufficiently advanced.
  4. Intel and IBM won't throw away that much money... by Shisha · · Score: 5, Insightful

    IBM & Intel won't just throw all this money away would they. I think what this means is:

    We're pretty damn sure that Linux is clean. You can be sure too, because if you get sued we'll pay the legal costs for the time being, but since we know that you (we, Linux) will win in the end, SCO will have to pay and so it won't cost us a dime.

    And so our Linux bussiness can roll on. It's more than PR. It's saying we'll win.

  5. I wonder what Darl would have to say about this by JustKidding · · Score: 5, Insightful
    I wonder if SCO is happy with this, or not.

    Ofcourse, it is yet another news article with SCO's name in it, but it also seems like IBM and Intel think they need a crapload of money to defend people, which in turn suggests that there is something to SCO's claims.

    SCO really wants to go to court, but ofcourse they know they don't stand a chance. This amount of money on both sides could make for a spectacular trial.
    At the same time, some people, who hadn't figured it out yet, might realise that there is no way on earth SCO is actually going to win.

    Besided that, i wonder if IBM and Intel did return-on-investment calculations on this. Maybe they figure the kudos will be worth more than 10M.

    1. Re:I wonder what Darl would have to say about this by mccalli · · Score: 4, Insightful
      it also seems like IBM and Intel think they need a crapload of money to defend people, which in turn suggests that there is something to SCO's claims.

      To me, it seems as if IBM and Intel need a press release to reassure customers, that's all. Not everyone follows every twist and turn in this, and a potential customer might be swayed by some of the SCO press.

      To me, this is just IBM and Intel showing that their money is where their mouth is, so customers can look and feel safe in choosing Linux.

      Cheers,
      Ian

  6. Well by eclectro · · Score: 4, Insightful

    help pay for the litigation costs of corporate users of the popular GNU/Linux operating system if they are sued.

    That leaves grandmas, 12 year old girls, and nerds in parent's basements out in the cold.

    I guess we now know who SCO is going to target next.

    --
    Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
    1. Re:Well by RobNich · · Score: 2, Insightful

      SCO is an entity. As such, it should be referred to in the singular. "SCO Lies," "When SCO appears to be..."

      I keep seeing this, and it makes me think that perhaps the Brits treat a corporation differently. Maybe it's because corporations are different in the UK. However, in the US a corporation is an entity (SCO is a US corporation), and therefore is not treated grammatically as a plural of 'person.'

      --
      Hello little man. I will destroy you!
  7. Intel has more to contribute than money by Crashmarik · · Score: 4, Insightful

    It will be interesting to see how much of the code for X86 that sco is claiming as stolen actually came from intel. Either intel reference code for talking to the bios or for talking directly to the chipset peripheral controllers tends to show up everywhere. Plus there is intels own work on SMP operating systems. Hypercubes were an intel specialty.

    Now if adaptec joins in sco could be in for a ripping the like of which has never been seen

  8. Who is not IANAL wins by tcoady · · Score: 3, Insightful

    $10 million? Thats enough money to fund OSDL for three or four years! More proof, as if needed, that this case is principally about lining the pockets of the legal community.

  9. But by rhadamanthus · · Score: 4, Insightful
    Nobody has been sued but IBM, right? And that was for breach of contract! Until SCO actually has the nuts to sue anyone (won't happen), who cares?

    --rhad

    --
    Slashdot needs to interview Natalie Portman.
  10. It's set up to pay for legal defense by gotan · · Score: 2, Insightful

    So the only thing that is "validated" here is, that SCO might (threaten to) sue you if you use Linux. We know that already, nothing new there. It's in IBMs (and other Linux-Distributors) best interest to put up a good defense in the first SCO vs. Linux-end-user case since the outcome of such a case will have high publicity value.

    --
    "By the way if anyone here is in advertising or marketing... kill yourself." -- Bill Hicks
  11. Re:Sued by RedHat Linux? by Anonymous Coward · · Score: 1, Insightful

    Advanced Server is still GPL, the only way they get you to pay for it is by not distributing binaries, but if you happen to obtain binaries in some way, installing and running them is perfectly legal. You can even redistribute it under the GPL as long as you remove/replace the redhat-artwork package, which is the only part of the distro you can't legally distribute.

  12. linux. by mr_tommy · · Score: 2, Insightful

    Sure, it's nice to have corporate support, but is anyone else a little worried about big businesses real interests in Linux? We live in a capitalist society : the interest is money and profit. Just makes you wonder what kind of support linux is going to need from these boys in the future, and how dependent they are going to be.

  13. This sends a loud and clear message by Rogerborg · · Score: 3, Insightful

    And I for one welcome our new lawyer overlords.

    Say, remember when the Romano-British employed one lot of maurading Saxons to protect them from another lot of maurading Saxons? How did that turn out? As I remember, the Saxons won by default... and then decided to pay one lot of maurading Vikings to protect them from another lot of maurading Vikings...

    Tort. Reform. Now.

    --
    If you were blocking sigs, you wouldn't have to read this.
  14. Re:The future by djeaux · · Score: 2, Insightful
    I am just looking forward to the day where this SCO's legal challenge gets thrown out of court.

    As are many others here! Let's hope that IBM's contribution helps get that ball rolling. It takes money to mount enough of a challenge to get SCO's case pitched into the circular file, hopefully with prejudice.

    I notice that a lot of folks are questioning IBM's ultimate motive here. Of course, their motive is to make money & defend their interests. But until SCO's spurious claims are properly squashed, nobody -- whether it's "profit-mongers" or the "free as in beer" crowd -- will be able to move with any certainty.

    --
    "Obviously, I'm not an IBM computer any more than I'm an ashtray" (Bob Dylan)
  15. Re:Intel and IBM won't throw away that much money. by spitefulcrow · · Score: 2, Insightful

    haha, "all this money"? $10 million is a drop in the bucket compared to what IBM could make once it clears this legal bull up and goes on selling Linux workstations/servers. They're not looking out for anyone but themselves.

    --
    Sorry, my karma just ran over your dogma.
  16. Re:Is that a good thing or a bad thing? by pe1rxq · · Score: 2, Insightful

    Actually it hurts SCO's claims...
    On of there PR thingys was indemnification, by creating this fund IBM is showing that they don't believe SCO will win.
    They are also making sure that whoever SCO is going to target can defend itself properly. Nothing could be worse than some linux user getting sued and loosing due to lack of funds and setting a precedent.

    Jeroen

    --
    Secure messaging: http://quickmsg.vreeken.net/
  17. new direction sought by holy_smoke · · Score: 2, Insightful

    MS is floundering, and Intel's fate is too tied to them now. Perhaps they want to free Linux of the SCO cloud so that they can continue to rocket into the mainstream. = more diverse markets for Intel and a shot at re-charging the flatlined processor market? Also maybe a way to cozy up to the OpenSource community to perhaps steal some light from AMD? Like you said - they aren't doing this for free.

    --
    Is the juice worth the sqeeze?
    1. Re:new direction sought by smittyoneeach · · Score: 3, Insightful

      MS is floundering, and Intel's fate is too tied to them now
      Well, given the cash reserves and market share of MS, 'floundering' seems a malapropism.
      OTOH, since Intel's compiler now does the Linux kernel, clearly they perceive some market growth in the penguin direction.
      In other news, SCO swears up and down that it lost the winning lottery ticket...

      --
      Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
  18. Re:Is that a good thing or a bad thing? by r00zky · · Score: 2, Insightful

    But, but, it's not an indemnification, it's a legal defense fund...

    It's not agreeing they're guilty and paying their consumers a compensation, is just helping their consumers don't get harrassed by SCO litigation spree.

    --
    I'm a chainsmokin' alcoholic sociopath, so-ci-o-path
  19. Re:Covers end users, too by KillerHamster · · Score: 2, Insightful

    Would that include the free Solaris license you can get by downloading it from Sun, or just a license for SCO's own Unix?

  20. Part of a legal strategy, not just being generous by RhettLivingston · · Score: 5, Insightful

    A typical legal strategy for a battle like this is for the side in SCO's position to tackle a bunch of little guys first to build up precedents without actually having to prove their case against an oponent equipped with a like legal force. IBM and Intel are simply serving notice to SCO that that isn't going to fly here. They will put on their defense wherever SCO goes instead of waiting for SCO to come to them.

  21. Yeah, I'm kinda hoping by confused+one · · Score: 3, Insightful
    That they'll pick the U.S. Gov't. I can't think of anyone who's a much bigger user of Linux that also has Unix licenses. NASA, DOD & DOE have all worked to improve (add to) linux. NASA & DOE more or less created the Beowulf cluster.

    If they're going after 800lb gorillas...

  22. SCOX dropping like a rock by WCMI92 · · Score: 2, Insightful

    http://moneycentral.msn.com/scripts/webquote.dll?i Page=lqd&Symbol=scox

    As of this writing:

    Last 15.95
    Change(%) -1.15 (-6.73%)
    High 17.18
    Low 15.77
    Volume 216,036

    It doesn't even bear predicting (because it's a sure thing) that Darl will vomit forth more bombastic FUD today or tomorrow in response to this.

    SCOX stock is the only currency they have. They pay their lawyers in it. If it collapses, they are done.

    But, their bubble can't have much longer to run though... For all the threats, intimidation, spin, etc, SCaldera has YET to take any action on their copyright claims...

    Sooner or later, the Emperor will be exposed for the streaker he is.

    --
    Corporatism != Free Market
  23. Re:Covers end users, too by WCMI92 · · Score: 3, Insightful

    " In SCO's legal reasoning (take appropriate psychodelics to get into that state), the Unix license is an agreement that a given customer has entered into, and in their opinion the use of Linux somehow represents a breach of that agreement by using the same intellectual property without paying for it. It gives them a "gotcha" on the customer in question, at least in their view."

    It seems to me that SCaldera is trying to retroactively change their license terms (ie: contract) with their customers to make it a violation to use Linux if you licensed OpenServer or UnixWare.

    Legally, I'd think that (IANAL) unless such language was SPECIFICALLY already there when the customer signed, it's an extremely weak claim.

    Such language would also almost certainly be illegal in some, if not most jurisdictions, as it's anti competitive.

    If anyone wanted confirmation that SCaldera's business plan is a MS funded FUD machine stock "pump n dump", the fact that they are DIRECTLY attacking their own customers, their SOLE source of ongoing revenue should do it.

    SCaldera isn't a business, unless you count shilling for Microsoft and Barratry as legitimate business practices.

    --
    Corporatism != Free Market
  24. Money well spent, called SCO's bluff by siskbc · · Score: 2, Insightful
    We're pretty damn sure that Linux is clean. You can be sure too, because if you get sued we'll pay the legal costs for the time being, but since we know that you (we, Linux) will win in the end, SCO will have to pay and so it won't cost us a dime.

    For what it's worth, if SCO sues and loses, their stock price immediately hits the shitter, and there will be nothing to recover for IBM/Intel. So whatever money they use for defense is lost...if there is any.

    That said, it's money well spent because they could easily lose that much money in sales from timid IT managers/legal departments. So it's worth their $10M purely as an advertisement.

    That said, I don't believe SCO will ever end up in court against IBM anyway, because they get more money from keeping their stock price up as long as possible. I see Canopy looting SCO right before an actual court date (probably one with Red Hat they can't avoid) in case they lose. If they accidentally win, well, that's a nice unexpected bonus for them.

    And so our Linux bussiness can roll on. It's more than PR. It's saying we'll win.

    It's certainly putting their money where their mouth is. But I think all they did is call SCO's bluff. The only other thing they accomplished is blocking the possibility that SCO could have gone after small companies, hoping to establish a precedent before they go after the big (blue) fish. By IBM telling SCO they won't get an easy victory against a chump defendant, I think they keep SCO out of court as a plaintiff altogether.

    All in all, good move.

    --

    -Looking for a job as a materials chemist or multivariat

  25. Re:What if... by WCMI92 · · Score: 4, Insightful

    " Why do people ignore IBM's past? They're so easy to forgive IBM , and yet so quick to jump down Microsoft's throat for any little thing.

    Imagine if Microsoft was doing team-ups like this. Slashdotters would be all over them for the "unfairness" of it all."

    Microsoft already HAS "teamed up" and is intimately involved in this thing, or at the very least encouraging it.

    $8 million dollars to SCaldera for licenses they didn't need, for one thing...

    You can bet Microsoft will _NEVER_ "team up" with anyone fighting a cause for FOSS... The whole reason they are funding SCO's FUD driven pump n dump is because of the fact that the GPL is "Kryptonite" to their Embrace, Extend, Extinguish business model that they have used thus far to maintain their monopoly.

    I forgive IBM for past transgressions because it seems they LEARNED from the mistakes they made in the 1980's. If they hadn't, it's likely IBM would have gone the way of Digital and other former dominant players...

    Microsoft could crush Linux forever tomorrow... If they released Windows complete with source under the GPL. Won't ever happen.

    --
    Corporatism != Free Market