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Novell Sued Microsoft Through Caldera?

cheesedog writes "The intrigue increases: According to this article in the Salt Lake Tribune, the secret terms of the sale of DR-DOS to Caldera included the provision that Caldera would have to sue Microsoft (for Novell by proxy) over the OS and that they would have to do so without revealing Novell's hand in it. Did Novell indirectly create a monster? Caldera's 300 million winnings against Microsoft are now being used to fund lawsuits against Linux (and Novell)."

30 of 239 comments (clear)

  1. Novell sued Microsoft through SCO by AEton · · Score: 4, Funny

    And the baby is Caldera's! And Steve Ballmer and Steve Jobs are stuck in the well while their evil twins go about their daily lives!

    Find out the exciting conclusion on the next episode of As the Slash Dots!

    --
    We recently had heard in the office over one of the Yellow Machine that's made by Anthology Solutions.
  2. Kinda like the U.S. by Anonymous Coward · · Score: 5, Insightful

    The US funds Saddam Hussein against war with Iran. Saddam and the US later go to war. (Twice.)

    The US funds the Afghans against the Russian army. The Afghans later turn all kooky and "kinda" go to war with the US.

    I think that this corporate thing just reaches to the roots of the problems in American society -- one person "helping" another by fuelling their hatred against a third party, only to have it backfire on them.

    1. Re:Kinda like the U.S. by Anonymous Coward · · Score: 5, Insightful

      And don't forget it was the CIA who trained Osama Bin Laden, too.

    2. Re:Kinda like the U.S. by Anonymous Coward · · Score: 5, Insightful

      I think that this corporate thing just reaches to the roots of the problems in American society

      Oh come on. As if the entire concept of expedience was invented by Americans!?!? As if this sort of thing hadn't happened over and over and over again since the dawn of recorded human history? As if it isn't happening right now in the European Union? In the Arab world? All over Africa? At the local PTA?

      If you want to indulge in self-flagellation for human flaws, at least have the decency to do it in the name of the human race, instead of blaming it on America.

    3. Re:Kinda like the U.S. by Maudib · · Score: 5, Insightful

      I will just add a couple of examples. Lets start with the British East India company in India. They touinely hired Various Indian Princes to attack and eliminate rival princes, again and again. Each time pilfering the target, then attacking the attacker with another proxy and plundering him.

      All the major european countries issued letters of mark to independent vessels, licensing them to pirate other nations, while keeping their hands clean.

      Lets see, to keep things fair a good non-european example would probably be... shit. Ah got it. Shit, you know the Chinese and Japanese did this sort of shit all the time. Just cant think of any good non-european examples.

      DAMN YOU EURO CENTRIC HISTORY EDUCATION!

    4. Re:Kinda like the U.S. by William+Tanksley · · Score: 4, Insightful

      I wonder how all the peace mongers would react if Hitler (the original, not some barely literate moron with a Texan accent) was alive today. You'd probably just let him be (unless he was American or Israeli.)

      Don't spend too much energy wondering -- just read history to find a confirmation of your suspicions. The overwhelming sentiment in America before Pearl Harbor was antiwar; Americans saw Hitler as just another cruel, powerhungry dictator on a landmass full of cruel, powerhungry dictators. They weren't interested in entering yet another expensive war to help a group of nations that were still engaged in avoiding repayment for WWI debts. Charles Lindbergh wrote in this vein; his work is interesting.

      He changed after Pearl Harbor, though. Almost the entire nation did.

      -Billy

    5. Re:Kinda like the U.S. by kbahey · · Score: 4, Informative

      I think that to blame Americans for inventing this kind of short term tactical alliances is incorrect. The Americans did not invent this kind of world politics.

      We can blame the Americans for not learning the lesson from the mistakes of others though.

      Let me help you there with other examples from history:

      • At the height of Muslim rule in Spain, the Umayyad Caliphs, and then Al Mansour Ibn Abi Aamir (Almanzor), allied with various Christian kingdoms against others (Leon, Castille, Navarra, ... etc). This policy increased resentment from the Christian Spaniards, and eventually contributed to the downfall of the Muslim empire in Spain.
      • Then the tide turned and the Muslims were split into weak Taifa kingdoms. The Spanish kings then played the game of "divide and conquer", allying with one to topple the other, then devouring the first when the chance came. Eventually, the policy worked out and the Spanish Christian ousted the Muslims. However, the Inquisition that followed, and the expulsion of the Moriscoes are not something to be proud of as a legacy.

      In retrospect, there are differences between these scenarios, and Britian's, and the current American ones.

      The current American scenario suffers from "enemy of my enemy is my friend" and from severe short sightedness. At best they are tactical, and they create long term enemies.

      Foreign policy has been erratic at best, and extremely short term.

      Examples of mistakes in supporting the wrong people abound:

      • Bin Laden and the Mujahedeen in Afghanistan. Not only were they supported, but when the USSR left, the country was left to duke it out on its own. The Mujahedeen turned against one another, and a civil war ensued. In Kabul alone, 50,000 people died over 5 years. The emergence of the Taliban was a direct reaction to the frustration that was there at the time (insecurity, killing, ..etc.) These same Mujahedeen are the Northern Allaince who are in control today in Afghanistan.
      • The Manuel Noriega example is well known. From ally to foe.
      • Saddam's example is well known too. The fact that he oppressed his own people was overlooked.
      • The same goes for other regimes in the area (can you say "The spice must flow"?

      In some cases, they are long lived, and endure various administrations: examples are the policy towards Cuba (no effect except on people and economy), Iran (more or less the same), and the long standing "Israel can do wrong" attitude.

      None of these policies were productive.

      As another poster pointed out, the same short term high gain, long term no gain policy is rampant in the corporate world too. Outsourcing internet dot com bubble bursting, and accounting scandals is the direct result of such penny wise dollar foolish policies.

      So, will the Americans learn and adjust? Or are they doomed to repeat the mistakes of history?

  3. A moot point now that SCO is... by rokzy · · Score: 4, Informative
    1. Re:A moot point now that SCO is... by daniel_mcl · · Score: 5, Interesting

      They are very much *not* dying -- if you look at the year's chart, you can see an enormous peak beginning around June, and they're just now settling back into their old stock price; they're still about 20% above where their stock price was this time last year. The sad thing is, being evil pays nowadays.

      --
      I used to read Caltizzle. I was a lot cooler than you.
  4. In related news... by gid13 · · Score: 4, Funny

    Novell sues Caldera for revealing Novell's hand in it.

  5. Novell found guilty by YouHaveSnail · · Score: 4, Informative

    it has to be said, innocent until proven guilty

    It's nice that you want to keep an open mind, but paragraphs 3, 4, and 5 of Judge Jackson's findings, Novell did indeed arrange secretly for Caldera to sue Microsoft, essentially on Novell's behalf. I think that qualifies as "proven guilty."

    1. Re:Novell found guilty by Squareball · · Score: 4, Interesting

      Open mind, yes, but "innocent until proven guilty" is missing one word in front of it and that word is "presumed". If you kill some one you aren't 'innocent' at all, you are just presumed innocent by the law. This is one of the things that bugs me is that when some one like O.J. is being hounded by the press and people are calling him a killer, people get outraged about it and say "He is innocent until proven guilty!", but really he is presumed innocent by the government and this whole thing ONLY applys to the government. I can presume that some one is guilty all I want.

    2. Re:Novell found guilty by sp0rk173 · · Score: 5, Funny

      I know this wasn't the intention, but the implications behind what you said is extremely funny..

      "It's nice that you want to keep an open mind, but here's why you shouldn't."

      Fuck idealism, right? I mean...we're talking about MICROSOFT here! Idealism only belongs in linux.

      That being said, microsoft is poopy.

    3. Re:Novell found guilty by CaptainFrito · · Score: 5, Insightful
      "innocent until proven guilty" is missing one word in front of it and that word is "presumed".

      The overwhelming majority are innocent. Thus the presumption is based, not on some act of misplaced kindness that permits wealthy and influential to escape justice, but a simple acknowledgment of the true fact. Such injustice happens by other means. The presumption of innocence allows people to exist without be harrassed in the absence of reasonable evidence to the contrary.

      And you are flat wrong about the government, anyway. The government prosecutes as a direct result of their presumption of guilt based on its unproven evidence. The Law, and not the government, presumes innocence. It is always a scary thing when people confuse government with law, even scarier when they equate the two.

      But perhaps most frightening of all is when poeple confuse law with morality and uprightness. These are independent concepts, and as with intergalactic comets, only rarely do they meet each other.

    4. Re:Novell found guilty by yintercept · · Score: 4, Funny
      I can presume that some one is guilty all I want.

      There are some restrictions on published media, which is why the word alleged is awkwardly inserted into media reports.

      In some places the word alleged works quite well. For example "the alleged software development firm SCO..."

  6. He said she said. by Alan+Hicks · · Score: 5, Informative

    Linux Weekly News had an article about this several days ago, and it's been talked about on Groklaw. Basically Caldera claims that there was an unwritten, oral contract between Novell and Canopy that said they would sue MS on behalf of Novell, and not reveal Novell's hand in it.

    Of course Novell responds in the negative. Canopy is using a rather interesting attack here though. Many of the people working with Canopy now worked for Novell back when this suppossed oral contract took place. They claim no one at Novell knows about it because all those people who once worked for Novell have moved on. This of course puts them in the spot of saying "We know everything because we were there and you people running Novell now have no idea what you're talking about. Our guys worked for Novell back then, and they know what was said."

    Novell's defense is simple. Show me a written contract.

    --
    Slackware, what else when it must be secure, stable, and easy?
    1. Re:He said she said. by Monkelectric · · Score: 4, Insightful

      I really actually like Novell more after this. MS fucked them and they knew it, and they also knew that to retaliate against MS would mean their end. This is not an "Novell is evil" story, this is a "Microsot is so evil that even when we KNOW they are in the wrong we can't do anything because they can destroy us" story. Look how they wiggled out of monoply stuff as strong as ever, and don't seem to be acting any differently.

      --

      Religion is a gateway psychosis. -- Dave Foley

  7. Your enemy's enemy... by actiondan · · Score: 4, Insightful

    Your enemy's enemy is potentially someone who will sneak up behind you when you least expect it and stab you in the back.

    Seems quite a few people need to learn that lesson.

    Dan.

  8. Live by the sword, die by the sword. by Anonymous Coward · · Score: 4, Interesting

    Novell is a extremely ironic situation.

    They had the rights to AT&T Unix stuff.

    BSD Unix was a free OS that was used to create stuff like TCP/IP and other things that directly related to the early commercial success of Unix.

    As a show of gratitude companies led by Novell helped sue to stop the free distribution of the BSD operating system. They claimed they just wanted to protect their IP.

    Eventually when it turned out that the court case would end up being painfull they settled out of court.

    It finally made it so that BSD had to remove every bit of code that was related to Unix. This turned into a near fatal blow to BSD, one that they never recovered from.

    Now Novell owns a Linux Distro. A Unix compatable operating system dedicated to being free.

    The owners of the Unix IP are suing them to stop the distribution of Linux and pay royalties to a company that they helped create.

    A company (Caldera, original SCO change it's name and sold its company off to Caldera) whose early success came directly from using Linux!

    Live buy the sword, die by the sword.

    Hopefully this will be a lesson to the industry don't bite the hand that feeds you (free software).

  9. Hmmm.... And what if: by Lukano · · Score: 4, Funny

    We will soon discover that it was truly Microsoft funding Novell in a behind-closed-doors manner to create the deal with Canopy in order to hype up the media attention around unix/linux/bsd all in order to drive SCO/Canopy/Caldera into the ground. Novell's merger with Suse then becomes an easy way for Microsoft and Novell to take a larger chunk of the open source OS market away from the big players (read: Novell then scrapping Suse or giving it away to MS to play with in their sandbox) and become their own litle megalopoly.

    Just spewing out semi-humorous consipracy theories, as all the twists and turns in these shenanigans are quite amusing.

  10. For those not familiar by Rosco+P.+Coltrane · · Score: 5, Interesting

    Novell was to be awarded around 17% of the Microsoft settlement money, but of course, as the money lovers they are, Canopy wanted more and sued Novell over their share of the pie.

    Also, while Caldera initiated the suit against Microsoft, Caldera later split in two and the DRDOS operations went to the embedded division, called Caldera Thin Clients, then later Lineo. Lineo never got much of the settlement money, Canopy and Caldera Inc (the original company, who had nothing to do with DOS anymore for years when the suit ended) got most of it. And their lawyers.

    Oh, and also, you might be interested to know that Ray Noorda, the man behind the suit against Microsoft, was the former CEO of Novell, and everybody close to the suit knew Caldera was Novell's tool.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  11. It's Not Like This Wasn't Obvious by hbo · · Score: 4, Informative

    At the time, it was clear that the sale of DR-DOS to Caldera/Canopy was to allow the lawsuit to commence without tying Novell to it too closely. The details of the arrangement are interesting nevertheless. It wasn't a case of the Novell board refusing to go along with a vendetta by Ray Noorda against Microsoft. Instead,the arrangement was specifically designed to allow Novell to realize some of the monetary value the (iron-clad, caught-you-in-the-act) antitrust claims contained.

    The connection to the SCO/IBM suit is also obvious, if you ignore any good guy/bad guy spin. It's the same business model playing out in the new case, but hopefully with different results.

    --

    "Even if you are on the right track, you'll get run over if you just sit there" - Will Rogers

  12. Re:Caldera and Novell are the same company.. by grendelkhan · · Score: 5, Informative

    They are both owned by the Canopy Group

    No, the Canopy Group and Novell were both founded by Ray Noorda, the Canopy Group being the company he started after being booted out of Novell.

    --
    Wu-Tang Name: Half-Cut Skeleton Get your own Wu-Na
  13. Novell and Noorda by einhverfr · · Score: 4, Interesting

    Novell was at the time headed by Ray Noorda, who was instrumental in the Canopy Group which was funding Caldera. It just that in addition to providing the litigation funding, it seems that they have also provided the litigation-friendly-managers which SCO and Canopy now are using to launch their campaign.

    --

    LedgerSMB: Open source Accounting/ERP
  14. Not a $300 million monster. by David+Hume · · Score: 4, Insightful

    Did Novell indirectly create a monster? Caldera's 300 million winnings against Microsoft are now being used to fund lawsuits against Linux (and Novell).


    Actually, no. A portion (and I suspect a very significant portion) of Caldera's $300 million winnings against Microsoft went to Novell. That is the entire point of Novell's current lawsuit against Caldera. From the linked Salt Lake Tribune article, "Novell wins breach-of-contract dispute with Canopy Group":

    Novell also was to receive a cut of any lawsuit awards in the form of so-called "royalties."

    * * *

    When Canopy prevailed against Microsoft and received the settlement, it tried to first deduct its attorney fees, court costs and other expenses, the judges found. Novell, believing its still-undisclosed cut of the award should have come on the gross amount, sued for breach of contract.


    As stated in paragraph 5 of the opinion of the Utah Court of Appeals in Novell, Inc. v. The Canopy Group, Inc. (see also here):

    To accomplish this, Novell and Canopy executed two separate documents: the first was a contract of sale, obligating Canopy to pay $400,000 for rights to the source code; the second was a temporary license obligating Canopy to pay $600,000 in license fees and "royalties." The royalties included provisions for payment to Novell of a percentage of any recoveries from lawsuits.


    Novell may have created a monster, but not a $300 million monster. Indeed, Novell received some undisclosed portion of Caldera's recovery against Microsoft, which Novell can now use to battle... Caldera.

  15. Re:Jackson not exactly a bastian of impartiality by stevesliva · · Score: 5, Informative

    This is not the same Judge Jackson, not the same court, not the same state, and not the same finding. It is, however, the same nation, so by all means let us distrust judge Norman Jackson because judge Thomas Penfield Jackson talked to the press too much.

    --
    Who do you get to be an expert to tell you something's not obvious? The least insightful person you can find? -J Roberts
  16. Good point... by acariquara · · Score: 5, Informative
    From fool.com

    Knowledgeable IP litigators have told me they think SCO has less than a 10% chance of prevailing in its cases, and even then, the courts' remedies would likely be a rewrite of the offending Linux code, not a cash windfall for SCO. BayStar Capital can afford to bet against the odds and lose. SCO cannot.
    also SCO stock has an analyst rate of 5.0, strong sell. Actually it cannot be bigger than 5.0, so that can be loosely translated as jump ship.

    Is it the end though? I doubt...

    --
    Dear aunt, let's set so double the killer delete select all
  17. The court decided "He said" by Len · · Score: 5, Informative

    The decision of the Utah Court of Appeals, which was also reported on Groklaw, says that there was a secret agreement that Canopy would sue Microsoft. Novell and Canopy were simply fighting over which of them should pay the cost of Canopy's suit against Microsoft.

  18. Norda( of Caldera ) was CEO of Novell by Locutus · · Score: 4, Interesting

    The only thing interesting here is that even when Novell kicked out Norda, he was willing to work with them in going after Microsoft. And even that's not too interesting considering Norda, at the time he was CEO of Novell, was pointing the gun at Microsoft with a Novell based Linux desktop project.

    So, is this really THAT interesting and new? Not if you've been in/around the industry for about 10 years. IMO.

    There's nothing here. Move along, move along.

    LoB

    --
    "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
  19. Novell concealed ... not really by Tsu+Dho+Nimh · · Score: 4, Informative
    The contract between Nov ell and Canopy provided that Novell would get a portion of any revenues from lawsuits

    Hardly secret, as the Utah courts have already noted. Novell sued them and WON for their share of the proceeds. SCO tried the usual tricks of getting greedy and trying to rewrite the contract unilaterally, trying to bring in oral agreements, then as usual, got shafted by their own evidence.

    Groklaw has already covered it.

    best quote: The district court perspicuously noted that the Canopy position "requires the court to reach the anomalous conclusion that by taking the attorney fee provision out of the agreement it really was writing the provision into the agreement."