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NRF Calls SCO's Claims 'Meritless'

Xenographic writes "The National Retail Federation has just put out a press release in which their CIO concludes that SCO's IP claims are "meritless," and that Novell is the last company which can show a clear title to the code in question. That SCO's claims are meritless is hardly news to anyone who has been following this, but what is interesting is that the NRF was prompted to release this because of legal threats to their membership, specifically SCO's threats to sue "major retailers." So the businesses being menaced by SCO are banding together, making it that much less likely that SCO will be able to generate easy money from mere threats of litigation. SCO's stock, meanwhile, appears to have taken a small dive from this news. Also, you can find further details and analysis on Groklaw."

34 of 326 comments (clear)

  1. Running out of time but not hot air by erick99 · · Score: 5, Insightful
    SCO is really scrambling now to amend their suits, claims, and counterclaims and they are looking sillier and sillier. Still, there are enough "nervous nellies" in the I.T. world to allow SCO to continue to bluster and bully there way to a few more "license" bucks before the courts finally put an end to this nonsense. It's good to see the retailers to tell SCO to put it where the sun don't shine.

    Happy Trails!

    Erick

    --
    http://www.busyweather.com/
  2. Code in question? by Anonymous Coward · · Score: 5, Insightful

    ...Novell is the last company which can show a clear title to the code in question.

    What code would this be, exactly?

  3. Re:At the end... by ravind · · Score: 5, Insightful

    They would still have to show some copied code.

  4. Next lawsuit ... by crimethinker · · Score: 5, Insightful
    SCO will sue the NRF for slandering their claims.

    I don't get these guys. How soulless do you have to be to outright lie about what you own, when you bought it, and the terms of an otherwise perfectly clear license?

    Ooops, now SCO will sue me, too.

    P.S. If you thought GPL was "viral," listen to SCO sometime: anyone who has ever seen the SysV source code can never work on an OS again, because that makes it a "non-literal derivative." Jeez.

    -paul

    --
    Pistol caliber is like religion: everyone has their favourite, and theirs is the only right choice.
    1. Re:Next lawsuit ... by NaugaHunter · · Score: 4, Insightful

      I think at the beginning they honestly thought they had the rights to some of the code, and that they thought the whole area was fuzzy enough that IBM would either pay them or buy them out rather than push their luck. Whether they started to over believe themselves, or just got so wrapped up in the snowball of lies that they had no way out, I have no idea.

      I would agree that patented/proprietary code is far more viral than GPL code could possibly be, since your right to use it is generally tied to contracts which can be cancelled. Having worked in "the industry" for 10 years, I have no conscious idea how I solved problems back then 4 companies ago. However, I have no doubt that if presented with a similar problem now I'd solve it in a similar way. In theory, virtually everything I've written from my second company on might have vestiges of supposedly 'proprietary' code.

      About the only defense to this is it's almost universal - anyone who's moved around a lot is likely to be in this position. The next software hurdle will be MS's sudden patent rush, and fighting the 'obvious' patents. Hopefully we can get the Patent Office/system overhauled or at least looked at before Longhorn comes out.

      --
      R: That voice. Where have I heard that voice before? B: In about 365 other episodes. But I don't know who it is either.
  5. How many people of come out against this?? by Chanc_Gorkon · · Score: 5, Insightful

    Ok how many people have to tell SCO to shove it before a judge does? Lemme see:

    National Retail Federation
    IBM
    Linus
    Autozone

    There are more I am sure, but I mean come on. Noone agrees with SCO (at least I have not heard of anyone). When is a judge just going to toss this crap out of court?

    --

    Gorkman

    1. Re:How many people of come out against this?? by msobkow · · Score: 5, Insightful
      The judge doesn't care how long it takes, and isn't allowed to care. If the judge shows bias through a summary dismissal,the whole mess gets tossed right back into retrial because of their "bias" against greedy, self-serving corporate and legal vultures. Judges aren't allowed to summarily rule against festering scum, no matter how obvious the guilt may be. You could videotape a broad-daylight murder, and it would still have to go through "the system."

      It's up to the lawyer to push for a quick decision, and it isn't in the lawyer's self interest to encourage a decision in reasonable time. The longer the lawsuit, the more the lawyer can bleed the client.

      Do you think any individual could get away with refusing to provide evidence demanded by the courts, and not end up in jail for contempt? The entire SCO management team should be seeing fraud charges and jail time when this debacle is finally ended, but instead we'll just see a few lawyers walk off with another porsche or two, Darl will whine about how they mislead him, and the only ones who'll really pay will be the people and businesses impacted by the fraud.

      It's the New American Way to "manage" the law. Companies like Microsoft and SCO build their very existence on treating the fines and penalties as the cost of doing business. It's not going to change until the lawyers, CEOs, and other corpororate officers are held personally responsible for their fraud and mismanagement, and jailed accordingly.

      --
      I do not fail; I succeed at finding out what does not work.
  6. Re:Old News by the+unbeliever · · Score: 2, Insightful

    Please, people, stop submitting this crap to Slashdot. Go make a blog site dedicated to every little gossipy detail of SCO's legal activities if you want

    Oh, you mean GrokLaw? ;)
  7. The relevant part... by Fnkmaster · · Score: 5, Insightful
    First of all, I don't see much evidence of a meaningful dip today. If you want to talk about meaningful numbers, go click on the 3 month or 6 month chart for SCO. There's been pretty steady selling pressure on this sucker for some time now. I don't really understand how it's slid as slowly as it has, but I guess it's just a reflection of the slow process by which the media's coverage of this case has gone from asserting that SCO's IP was clearly infringed by Linux, to the inclusion of phrases like "SCO claims" and "according to SCO," prior to those claims, and, increasingly, interviews with analysts and industry figures who are pretty willing to join the SCO bashing as they all start to realize that if SCO wins, the whole economy loses, with a massive number of companies relying somewhere in the wings not just on Linux but on lots of pieces of Open Source technology.


    With a market cap of around 90 million now, this one has been a real dog for the investors. And this is a company with $65 million in cash in the bank, supposedly - that means the price-to-book ratio is getting mighty low. And their P/E is pushing down towards 20.


    For those not familiar with this stuff, that means the premium people were putting on this stock reflecting the possibility of a big (i.e. 5 billion dollar) win against IBM has basically dropped to near-zero. I wouldn't be surprised to see the whole executive team get rotated out soon or something else drastic happen to SCO. The legal battle may drag out for ages, but the market has spoken.

    1. Re:The relevant part... by Xenographic · · Score: 2, Insightful

      They had a small rise this morning, and when I saw it hit the news, there was about a 0.20 drop. Granted, it's not a lot for them by any means, but it was a rather sharp line downwards at the time I saw it.

      Anyhow, the more important part is that more people are taking note of this (outside of slashdot types) and so SCO is unlikely to get any more large cash infusions, barring someone with a vested interest in this funding them...

      As another poster mentioned, SCO's POS[1] deployments are primarily in retailers[2], this also is likely to prevent people from doing business with SCO, even moreso than usual.

      So it's nothing really that new to us, but it's new that other people who hadn't payed attention to this are hearing more about it.

      [1] By which I mean "point of sale," though you could be forgiven for thinking otherwise...

      [2] I've heard McDonalds and Pizza Hut mentioned as using their systems... or was that Dominoes? I forget exactly; they could even have systems in both.

  8. Re:SCO's stock by Flyboy+Connor · · Score: 4, Insightful

    Because there are still people believing that a company that makes such outrageous claims must have an ace up its sleeve.

  9. Money already made... by deadmongrel · · Score: 4, Insightful

    Who ever is instrumental for this already got away with the money. They are trying to lick the leftovers from the plate now. The funny thing is somebody lost and its not us(Open Source people), its the people who bought the stock.
    One thing is for sure, this whole fiasco made more good publicity to FOSS. More people know about linux and more importantly what open source is.

    1. Re:Money already made... by Citizen+of+Earth · · Score: 2, Insightful

      The funny thing is somebody lost and its not us(Open Source people), its the people who bought the stock.

      The people who bought into this turkey and didn't get out after it started declining from $20 deserve to lose their money. Maybe they'll think twice the next time they hear about a dying company rolling the "IP Litigation" dice.

      One thing is for sure, this whole fiasco made more good publicity to FOSS.

      More importantly, if SCO doesn't implode before reaching trial, the case will result in the vindication of Linux, F/OSS, and the GPL.

  10. GPL to the rescue by DaveAtFraud · · Score: 5, Insightful

    Since Novell bought SuSe they are now a Linux distributor and bound by the terms of the GPL. If Novell owns the Unix copyrights (looks like they do from what I read on Groklaw), we're all VERY safe from them attempting to pull an SCO.

    Personally, I'd worry more about "submarine" software patents that someone will suddenly complain are being infringed ala PanIP, RAMBUS, et al. You will note how easily IBM was able to find four patents for their counter-suit against SCO.

    (You can go back to worrying now)

    --
    They that can give up essential liberty to obtain a little temporary safety deserve neither safety nor liberty.
    Ben
    1. Re:GPL to the rescue by lacrymology.com · · Score: 5, Insightful

      " Since Novell bought SuSe they are now a Linux distributor and bound by the terms of the GPL."

      That never stopped SCO.
      -m

      --

      #
      # Modus Ponens
      #
    2. Re:GPL to the rescue by Tony-A · · Score: 5, Insightful

      That never stopped SCO.

      But Novell still has customers, intends to keep them, and even get more customers.

      There are reasons that enterprise-class customers will pay good money for the same bits that hackers download for free, plus a scrap of paper that vaguely mentions something about support. If it breaks, the hackers expect to fix it themselves, whereas the enterprise-class customers expect someone else to fix it without being told to Read The Fine Manual.

    3. Re:GPL to the rescue by RickHunter · · Score: 4, Insightful

      I fully expect this to be Microsoft's next volley. Some little company will start tossing patent infringement claims at the Linux and BSD kernels. These will be latched onto by the mainstream media. When it finally comes to trial, the patents will be found to be invalid and the sock puppet will be wiped out messily... An event that will largely be ignored by the media.

      Unfortunately, there's little chance of getting a President next term who might push the Justice Dept to stop this scam...

  11. Re:That should do it.... by Our+Man+In+Redmond · · Score: 4, Insightful

    Not only that, but it is a very large business organization that contains a huge number of SCOG's current and potential customers*. Point of sale systems are a large percentage of SCOG's non-litigation business; think companies like McDonald's and Goodyear.

    * Assuming this business still exists for them and that anyone would be foolish enough to buy one of their systems, of course.

    --
    Someone you trust is one of us.
  12. Re:Oh really? by Anonymous Coward · · Score: 1, Insightful

    Before this all started they were at ~0.75. Plenty of opportunity for whomever to cash out.

    I find it funny that every 1% drop is met with OMG!! ITS TEH BEGINING OF THE END FOR SCOX!! Fuck the stock market.

  13. Re:More evidence that... by pyros · · Score: 2, Insightful

    The conundrum is that it took a major corporation to back Linux to bring an Evil Corporation out to sue, necessitating the corporate backing to withstand it.

  14. Re:SCO's stock by amwassil · · Score: 3, Insightful

    Until the final death knell, traders basically are in it for two reasons: (1) to make a buck, (2) to have fun playing a risky game. They will keep kicking the price around as long as they can force the price up and down, even if the overall trend is down and will hit zero eventually, traders will drive it up and down making money on every change. When the price tanks because all the real investors bail out, the gamblers will lose interest too and the price will tank towards zero.

  15. Re:Good ol Groklaw by DickBreath · · Score: 5, Insightful

    Amazing that a website made by a paralegal can be taken as gospel.

    It isn't the paralegal's words that are taken as gospel. Those words are just opinion.

    The credibility of that opinion, and the opinion of people commenting in the discussion rests on the mountains of information that Groklaw compiles in one convenient place.

    SCO press releases. All manner of court filings. All relevant press coverage. Transcripts of court hearings. (And there is an important one comming up on May 11.) SEC filings.

    All of that information is verifiable. Just follow the collected links back to their original sources. Download scanned PDF's of court documents. Or better go to the courthouse and get your own copies of originals from the court clerk.

    Groklaw is credible because the collected facts of what SCO says in court, says to the SEC, and then says in the press paints a picture that any reasonable person can see. Too bad it is embarrasing for poor SCO to have all this information conveniently collected and available for comparison in one place.

    --

    I'll see your senator, and I'll raise you two judges.
  16. Re:At the end... by NickFortune · · Score: 2, Insightful
    The code mentioned by the NRF is the System V code. Even if Novell does own that, that doesn't confer any rights to Linux - unless they can prove SYS V code has been wrongly included in Linux - something SCO have failed to do.

    It's a good idea to keep an eye out for things like this - future owners of Novell may not be a sympathetic to FOSS as the current ones. But let's try and keep from muddying the water

    --
    Don't let THEM immanentize the Eschaton!
  17. Yes, that would be awfully funny by mcc · · Score: 4, Insightful

    Because the thing is that Novell is selling linux, and in fact owns SUSE and Ximian, and as a result are bound by the terms of the GPL.

    The neat thing about the GPL is its seemingly foolproof method of making sure everyone plays fair: they make it in everyone's interests to play fair, by making everyone not just borrow from everyone else, but depend on everyone else.

    For example, let's say a company releases a piece of software under the GPL, then the next day decides to recant and announces that no, we changed our mind, it wasn't GPLed after all. If the company never sold anyone a copy, just put it up for download on a website, well then, who's to disagree with them? If someone had given them money for it that could be construed as having some sort of contractual validity, and the license that they included when they originally distributed the license irrevocable. But if it was just a free download, and the license included with the download as a written offer... well that's kind of fuzzier, isn't it? It would seem the company couldn't "go back" on their license offer, but the company could claim all kinds of things. They could claim the release was "unauthorized", or not intended for public release outside the company, or there were mitigating copyright and contractual cirucmstances the company was not aware of at the time doctrine of mutual mistake blah blah blah. And if this were the BSD license, that's where things would end.

    But the GPL, among doing other things, adds an interesting wrinkle to things by legally intertwining to a certain extent everyone who cooperates using it. If someone releases some code they own under the GPL, they still own it and can do whatever they like with that code outside the context of the GPLed product However if someone is distributing or redistributing a product containing someone else's GPL code-- anyone's-- then they suddenly find themselves with a small and reasonable, but important, set of obligations.

    So, here's another hypothetical example. Let's say Novell announces they own lines 5000-5435 of the linux kernel; that those lines were stolen from NetWare by a disgruntled employee who then submitted them to Linux as his own work at some point; that they have indisputable proof of this; and they further announce that anyone who wants to sell linux owes them $699 a copy for Novell's 435 lines of code there.

    The problem here is that they can't do that; the instant Novell points out those 435 lines of code are unlicensed, distributing Linux becomes illegal, period. The reason for this is that the GPL says that in order to distribute under the GPL, you must be able to offer to anyone who you distribute it to an unlimited GPL license themselves, which includes the right to freely redistribute and modify. If you don't have the rights to distribute Linux under the GPL, you certainly don't have the right to distribute Linux by any other mechanism. And if you have to pay $699 to distribute the Linux kernel, then you don't have the right to distribute it under the GPL. The rest of Linux, everything except those 435 lines, is still GPLed and freely distributable; but the whole package, or any package that contains those 435 non-Free lines linked against GPL code, is something nobody-- including Novell-- has the right to distribute at all until those lines are removed or replaced.

    So, Novell currently lacks the ability to attack Linux in this fashion without losing the right to sell Linux in the process-- which would be a major problem for them since they currently have a decent amount riding on their Linux-based products. And the really fun thing is, if Novell does as SCO did after raising their apparently fraudulent claims against Linux, and continues to distribute Linux even after they make the public claim that they own code in Linux that they never gave Linux a license to, then one of

  18. Re:Old News by jschrod · · Score: 5, Insightful
    Please note: I have mod points and could have modded you Offtopic or Overrated, what I feel completely appropriate.

    Nevertheless, looking at your article history, you don't seem to be a troll. So, one tip: Go to your preferences, and exclude Caldera from the homepage. Voila, you won't see those articles any more. Others, who want to see them because they don't have the time to read Groklaw, can leave that flag on.

    See, best of both worlds for all of us.

    --

    Joachim

    People don't write Manifestos any more -- what's going on in this world? [Frank Zappa]

  19. Right by DanTheLewis · · Score: 3, Insightful

    I was referring more to the kind of clout an organization like this has, than their truth-handling ability.

    When this sluggish market-force monster rears its ugly head and blasts SCO with this strength, there is even less chance that any white knight will come to the rescue of SCO (the princess in the tower? nah, the warty witch).

    SCO should have let this sleeping dragon lie.

    --

    Q: What did the comedian say to the crowd?
    A: If I knew, this joke would be funny.
  20. The hidden agenda in all this by panurge · · Score: 4, Insightful
    Is that actually SCO seems to have been of some use, on the basis of what doesn't kill you makes you stronger. They have:
    • Caused major corporates like IBM and HP to assess how important FOSS is to them, and act accordingly
    • Probably influenced the acquisition of SuSE by Novell, and helped commercialise Linux
    • Raised the profile of Linux in the world at large, by making business analysts realise there is something here that people will fight over
    • Probably speeded up improvements in the FOSS creation process, helping to ensure that its IP status is robust
    • Made a heroine of PJ
    • Given the entire IT industry a new hate figure to mold in wax and stick pins in, doubtless helping Bill G sleep better at nights of the full moon
    • Enriched several poor and deserving attorneys and helped to ensure that neither DaimlerChrysler nor Porsche have too many layoffs
    • Further educated some of the people who thought they understood the stock market
    Darl McB deserves some sort of award for all this. With his remarkable combination of tact, diplomacy and tireless negotation, he should at least be made Ambassador to Iraq.
    --
    Panurge has posted for the last time. Thanks for the positive moderations.
    1. Re:The hidden agenda in all this by Citizen+of+Earth · · Score: 2, Insightful

      Made a heroine of PJ

      More importantly in this regard, the case triggered off "The Groklaw Effect": The results of an online community working to debunk bogus legal claims. Will the next IP-fraudster think twice about attacking F/OSS?

  21. Re:Oh really? by afd8856 · · Score: 2, Insightful

    I bet even Microsoft know by now that this entire affair is stupid and for sure they would not waste any more money on this.

    --
    I'll do the stupid thing first and then you shy people follow...
  22. Re:Oh really? by shayne321 · · Score: 4, Insightful
    It could be up because of this news from yesterday:

    SCO cuts jobs to reach product profit

    Investors seem to always assume job cuts will lead to profitability.

    --
    Today I didn't even have to use my AK; I got to say it was a good day -- Icecube
  23. Re:Running out of time but not hot air by StenD · · Score: 3, Insightful

    There are already Point Of Sale systems for Linux, and with the announcement of the IBM Retail Environment for SuSE Linux, that will give retailers more assurance that it's safe to use Linux.

  24. Re:Running out of time but not hot air by killjoe · · Score: 2, Insightful

    It's not "nervous nellies", it's suckers. There is one born every minute. Just because somebody is a CIO that does not mean they are not suckers. In fact my anecdotal evidence suggests that a greter percentage of CIOs are suckers compared to the general populace.

    --
    evil is as evil does
  25. NPV of future cash flows by Snorpus · · Score: 3, Insightful
    While we're being technically correct, let's change revenue to positive cash flows and losses to negative cash flows.

    As to daily fluctuations, studies going back nearly half a century show that short-term movements can be explained as well by the Random Walk theory as anything else.

    To see what "The Street" really thinks about SCOX, take a look at the 3-month, 6-month, and 1-year price history.

  26. Re:SCO's stock by Anonymous Coward · · Score: 1, Insightful

    Stock price is based on perception and speculation... It is not at all directly tied to actual profit or revenue or assets of the company

    Perhaps in the extremely short term. It's obvious that sotck prices change minute-by-minute every day, and no one really has access to information about sales in that sort of resolution.

    But long term, stock prices track earnings remarkably well.

    Bubbles involving tulips or dot-coms are not only rare, but examples of short term "perceived" prices being corrected in the long term.