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Contractors to Bear Burden if SCO Chases AU Govt

Peter writes "Contractors are set to bear the burden of SCO legal action if the company chases Australian Government departments. Apparently there are provisions in the Australian Copyright Act which allows the govt to assume IP rights then negotiate a "fair and reasonable" payment for those rights. This is in addition to contract provisions which state that contractors must accept liability for third party IP disputes."

36 of 114 comments (clear)

  1. AU to SCO: by Anonymous Coward · · Score: 2, Funny

    What part of " eminent domain " do you not understand, bitches?!!!

    1. Re:AU to SCO: by cshark · · Score: 2, Interesting

      It's really not that unusual. Indiana state has something similar in their contracts. Along with the ability to ask for a complete refund for services rendered, wilst still recieving the services.

      Many states, and countries do these sort of things. Ever noticed why only a very small pool of companies are willing to work as government contractors? There's a reason for that. I'm not knocking it though.

      Of course, any liability for Linux would only be incurred if a) the government is extensively using Linux and b) SCO can somehow prove ownership and origin of the code.

      I wouldn't count my penguins before they hatch.

      --

      This signature has Super Cow Powers

  2. Ask your lawyer first by FunWithHeadlines · · Score: 3, Informative
    Oh well, given how badly the SCO case has been going for them, and how confident IBM seems, and how many cases are looming against SCO, and how none of the evidence seems to point in SCO's favor, this is an empty threat in the long term. In the short term, however, as SCO goes through its death throes, I suppose it's possible some Aussie contractor gets hit with legal claims. If that happens, ask your lawyer for advice before you do anything (good advice any time you get embroiled in legal affairs), but don't worry. Chances are very good you won't have to pay a dime, but play things the smart way by making sure you don't do anything foolish.

    And soon this will all blow over as SCO is turned into a caldera by IBM.

  3. .au OSS by tomknight · · Score: 3, Interesting
    It's nice to see that the .au gov't are actually looking seriously at open source in the first place....

    Tom.

    --
    Oh arse
    1. Re:.au OSS by Travoltus · · Score: 3, Insightful

      But if the contractors are too scared of being sued to implement open source solutions, what good is that?

      Why do I get the feeling that Linux is Bugs Bunny and SCO is Elmer FUD?

      --
      --- Grow a pair, liberals... stop letting the Republicans bully you!
    2. Re:.au OSS by Trejkaz · · Score: 2, Interesting

      Isn't it possible to implement an open source solution which doesn't involve Linux?..

      --
      Karma: It's all a bunch of tree-huggin' hippy crap!
  4. Wonder ... by drizst+'n+drat · · Score: 5, Insightful

    "If legal action is taken against a Commonwealth department or agency through a dispute on third party software, the agency reserves the right to withdraw, leaving the legal battle -- including all costs incurred and all penalties applied -- to the contractor." ... then how many contractors are going to be willing to recommend Linux systems ...

    1. Re:Wonder ... by greenalbatros · · Score: 3, Funny

      If legal action is taken against a Commonwealth department or agency...

      then the motherland brings in the SAS and we sort em out, Iraq-style.

      --
      this sig steers like a cow. and i can prove it
    2. Re:Wonder ... by Pembers · · Score: 2, Insightful

      ... then how many contractors are going to be willing to recommend Linux systems ...

      Couldn't this happen with any software, not just Linux? Linux seems dangerous to some at the moment, but I think that's only because no-one's currently trying to run a stock scam by claiming that they own large, under-specified chunks of Windows, MacOS or Solaris...

  5. Threats Alone by millahtime · · Score: 4, Interesting

    It is truely quite amazing how far a good (by good I mean good at his/her job) lawyer can get on threats alone. I am really quite in awe.

    1. Re:Threats Alone by Maestro4k · · Score: 4, Insightful
      • It is truely quite amazing how far a good (by good I mean good at his/her job) lawyer can get on threats alone. I am really quite in awe.
      It's not that surprising really. Businesses have to consider legal threats, even if they appear to be without merit, so they can plan for the worst-case scenarios. IIRC, publically traded companies must also report on the potential impact of lawsuits to their stockholders as well.
    2. Re:Threats Alone by k98sven · · Score: 2, Insightful

      It is truely quite amazing how far a good (by good I mean good at his/her job) lawyer can get on threats alone. I am really quite in awe.

      Just remember: You can fool some people all the time, and all the people some of the time, but you can not fool all the people all the time.

      SCO has managed to fool some of the people. But their time has started to run out.

    3. Re:Threats Alone by Trigun · · Score: 5, Funny

      Yes, but public companies can sugar coat it. Nowhere in SCO's SEC Filings does it say "IBM could, and most likely will, fucking destroy us!"

    4. Re:Threats Alone by The+Angry+Mick · · Score: 5, Interesting

      What's really unfortunate though, is that, after the dust has settled and its all over but the shoutin', the lawyers are very seldom ever held accountable for their actions.

      If, say, it turns out that SCO is in fact in league with the devil, and that David Boies joined SCO's cause fully aware of any lies told thus far, "justice" should demand he be punished alongside Darl McBride. What will most likely happen, though, is that Boies will only get to jack his fees by about a million bucks or so.

      --

      I'm not tense. I'm just terribly, terribly, alert.

    5. Re:Threats Alone by Haeleth · · Score: 3, Insightful

      What's really unfortunate though, is that, after the dust has settled and its all over but the shoutin', the lawyers are very seldom ever held accountable for their actions.

      If, say, it turns out that SCO is in fact in league with the devil, and that David Boies joined SCO's cause fully aware of any lies told thus far, "justice" should demand he be punished alongside Darl McBride.


      Nonsense. Are you saying that the lawyer who defends a murderer he knows to be guilty should be executed too? Obviously not - our justice system requires that the defense lawyer does his damnedest to get his client off, even if she's clearly as guilty as hell, because that's the only way we can guarantee that someone innocent gets a fair trial even if their lawyer thinks they did it.

      Now, you might say that's different, and obviously you weren't referring to criminal trials, and the rules should be different for civil lawsuits, right?

      Wrong.

      Think about it: consider a hypothetical situation where... oh, let's say Microsoft so everyone knows who to cheer for... where Microsoft really had stolen a bunch of source code from a small company. If a lawyer who lost a case stood a good chance of being accused of knowing the case was wrong and punished for that, then no lawyer would dare go up against Microsoft, since Microsoft's own lawyers would be so likely not only to win, but also to get the little company's lawyer punished. In that situation, our little company would be screwed: who would represent them?

      Like it or not, I think you'd be hard pressed to come up with a system that both ensures justice and punishes crooked lawyers.

    6. Re:Threats Alone by gcaseye6677 · · Score: 2, Interesting

      Providing a vigorous defense, where the client's interests are represented to the fullest, is much different than manufacturing evidence to be used in a baseless lawsuit which is part of a stock scam. If this can all be proven, I'd say Boies could definitely face criminal charges for helping with the fraud along with professional sanctions for legal misconduct, which would probably mean being disbarred. We can only cross our fingers and hope that this scumbag is never allowed to file a lawsuit again.

  6. Actually, it's good news, if you read carefully... by Hanzie · · Score: 5, Insightful

    This is supposed to be worrisome? HA

    What this article actually says is:

    Attention Aus IT departments: GO AHEAD AND BUY LINUX SOLUTIONS, IF THERE ARE ANY PROBLEMS, OUR LAW SAYS IT'S NOT OUR PROBLEM!

    Not to mention the fact that this only comes into play if

    "Should SCO's claims on Linux be upheld in US courts."

    No Australian government agency is going to "Negotiate" with SCO. They're beaurocrats, and given the decision between "Take Action" and "Pass the Hot Potatoe to Someone Else" no sane official is going to do anything but pass it back to the contractors.

    It's not only the reasonable and intelligent thing to do, but for once, it's politically expedient.

    All the article says, in essence, is:

    There appear to be problems with using Linux in gov't, but by law, those problems belong to the contractors. Procurement agents: go right ahead, you're indemnified by federal law.

    This is actually good news, although it depresses me how often my sig has been appropriate lately...

    --
    ********* sig: If you don't like the law, get filthy stinking rich, and buy a better one.
  7. Make Contracts Open Source! by Anonymous Coward · · Score: 2, Funny

    Then the brunt of SCO's impact would be absorbed by the overall community.

    Which is nice.

  8. What a great system! by Fortress · · Score: 4, Interesting

    Wow, the govt in AU can appropriate copyrighted material and negotiate payment later? This has a number of great uses outside of getting free M$ software.

    Imagine a govt library that has every book, newspaper, magazine, etc in its catalogue, all without paying for it! Or better yet, a govt website with mp3s of every song ever written, all free for the download...the end user might be in trouble though.

    Now, wasn't that more interesting than the obligatory SCO bashing in the other posts?

    1. Re:What a great system! by oolon · · Score: 2, Interesting

      Funny you should say that, in the UK publishers of books are required to send the British Library a copy of the book (on acid free paper) without charge as part of the copyright entitlement process.

      James

  9. uhhh... by Anonymous Coward · · Score: 3, Insightful

    uhh... they keep forgetting one important part ... THEY HAVE TO PROVE IT FIRST.

    how can you seek payment on the IP if you havent been able to prove that your code is in linux.

    1. Re:uhhh... by sqlrob · · Score: 3, Insightful

      You can seek payment quite easily. Whether you get it or not is another question.

      If it's cheaper to submit than to go to court, what is going to happen with most companies that get shaken down?

  10. Don't follow US Lead by millahtime · · Score: 3, Insightful

    This is one time where the rest of the world should not follow the US lead. Don't be sue happy. It's really no good. Look at us. Does the rest of the world really want to end up like this.

  11. Re:Precedent? by Deflagro · · Score: 2, Funny

    Holy shit, where the hell did that come from...talk about RTFA with yer eyes open.

    --
    Der Tod ist der einzige Weg hier raus!
  12. You can only sue the gov't if it lets you. by Anonymous Coward · · Score: 4, Insightful
    God you mods are dim!

    It's a threat, see? The sovereign government of .au just needs to tell SCO that the interests of their Linux users outweighs any private "IP" ownership rights of some sleazy American co.

    Sounds like a good way to stick it to those 'merkins to me!

    1. Re:You can only sue the gov't if it lets you. by azzy · · Score: 2, Interesting

      > It's a threat, see? The sovereign government of .au just needs to tell SCO that the interests of their Linux users outweighs any private "IP" ownership rights of some sleazy American co.

      Not exactly. Just the government can't be sued. but contractors that supplied the government /can/ be.

  13. Re:Actually, it's good news, if you read carefully by spellraiser · · Score: 5, Funny

    "Pass the Hot Potatoe to Someone Else"

    Well you have learned, young Padawan

    - Master Dan Quale

    --
    I hear there's rumors on the Slashdots
  14. This is huge by GreenCrackBaby · · Score: 5, Interesting

    I'm an independant contractor, and when I sign my contracts (usually through a headhunter-type firm) there are provisions in my contract for assumption of IP violation risks and liability for my work. In other words, I agree to take responsibility for any and all IP violations that arise as a result of my work.

    Normally this isn't a big deal, as the gist of these types of clauses is to prevent contractors from plagerising existing code or assuming full responsibility if they do. However, if you are a contractor who is in a position where you have to recommend a software product or hardware vendor, this SCO shit can be a huge black market for open source adoption.

    A normal, independant contractor should not and will not assume this type of risk if they are smart. Even if they are sure that SCO's case is bunk (as I am). They probably will lose their contract regardless, and the cost to an independant contractor would be huge.

    In other words, good luck finding contractors who willingly will reccommend that a company adopt Linux now.

    Thankfully my wife is an IP lawyer, so I'm ready for a fight if need be, but I don't think most contractors are as lucky as me.

    --

    "The market alone cannot provide sufficient constraints on corporation's penchant to cause harm." -- Joel Bakan
    1. Re:This is huge by millahtime · · Score: 2, Insightful

      If your worried at all I would say go with BSD (specifically FreeBSD). You can do the same things and it's not getting hounded. I know it's hard for people to make that jump but it's a thought. And it's technically pretty easy to make the jump.

    2. Re:This is huge by CowboyBob500 · · Score: 2, Interesting

      I'm an independant contractor, and when I sign my contracts (usually through a headhunter-type firm) there are provisions in my contract for assumption of IP violation risks and liability for my work. In other words, I agree to take responsibility for any and all IP violations that arise as a result of my work.

      I'm an independent contractor too (albeit in the UK) and I've seen things like this in potential contracts, along with all kinds of other nastyness - one particular one I often see is that if I supply code written by me and licensed under the GPL then that code must be relicensed to become the property of the client (its never worded like that but that's what it essentially means). I always request that these clauses get taken out of the contract or I don't sign. It's not like there isn't plenty of other work out there, at least here in the UK. I turned down 5 contracts before landing my current one for similar contractual reasons. Anyone who signs a contract like that only has themselves to blame if it comes back to bite them. Plus, I hope you have indemnity insurance and public liability insurance, if not what the hell are you doing?

      Bob

  15. SCO defined by RailGunner · · Score: 4, Insightful
    barratry: The offense of persistently instigating lawsuits, typically groundless ones

    racketeering: To carry on illegal business activities that involve crimes, such as extortion.

    extortion: An excessive or exorbitant charge, such as a $600 licensing fee for a dubiously made IP claim.

    SCO's illegal activities aside, does SCO, being an American company, even have the ability to sue a foreign government? Where would the case even be tried? Any chance Darl can just get fed to a croc?

  16. the one time? by Run4yourlives · · Score: 2, Insightful

    MOST times the rest of the world shouldn't follow the US.

  17. Class action lawsuits in Aus? by earthforce_1 · · Score: 2, Informative


    Standard IANAL disclaimer: (Especially in Australia)
    I would guess that it is possible for contractors to band together and get some sort of class action status if SCO starts harassing them?

    Realistically, I don't think it would be worth their time for SCO to try and identify small fry overseas contractors using Linux and file claims against them. And larger gov't contractors would have enough legal muscle to defend themselves in court. And SCO is becoming notorious for talking much and doing little.

    --
    My rights don't need management.
    1. Re:Class action lawsuits in Aus? by Mateito · · Score: 2, Funny


      > I would guess that it is possible for
      > contractors to band together and get some sort
      > of class action status if SCO starts harassing
      > them?

      Bugger it. Its Australia.

      Get a group of contractors together and have a quiet work with SCO in the car park with a two'b'four.

  18. I'm somehow not suprised by msim · · Score: 3, Insightful

    I'm not suprised by either

    a) those loopholes put in place by the aust-govt, as someone else said, it's to stop the goverment
    departments being responsible for any feckups of any contractors. And as such is reasonable i guess.

    b) SCO is gutter feeding like this. I mean c'mon they've already shot themselves in the foot and the shin and the .......

    c) Australia is not a state of the US, i mean why the hell are we getting so bleeding litigation happy here now?

    (o/t) I know Howard is a Blair/Bush lovechild, and wants Bush bad ;-), but do we need to go this far as a country (corporately or as people) to prove we are equal in the arse licking stakes as little Johnny?

    --

    Life is like a box of chocolates, you never know when your gonna get food poisoning.
  19. SCO in Australia by ajv · · Score: 2, Insightful

    SCO has ceased making simple minded threats here due to complaints to the ACCC (competition watchdog) from various sources, including local Linux advocates.

    If found to be breaching the trade practices act, SCO can be fined millions of dollars, like the multi-vitamin industry was a few years ago.

    Extortion is an even worse crime, and if they're found to making threatening demands which are clearly illegal, directors can be sent to jail if they ever come to Australia.

    If the case is upheld (which it wont be), US results of law cases is just common law to us, not a final opinion. SCO still has to work within our copyright act, which is different (for now) than the US copyright regime.

    For example, Sony lost the 'right' to enforce regionalization on PS2 and ipso facto DVDs through an action the ACCC took against them in another copyright case as an amicus curae.

    SCO are just fudding here. Unfortunately, barratry was removed as an offence a few years ago, but realistically, it should have been left on the books.

    Andrew

    --
    Andrew van der Stock