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Some Linux Users Violate Sarbanes-Oxley

Goyuix writes "According to the IT Observer, publicly owned companies who are using Linux, could be violating the federal securities laws as part of Sarbanes-Oxley. The article goes on to say that companies are required to "disclose ownership of intellectual property to their shareholders." How are these companies supposed to really list out all the IP owners if they were to install a full desktop or server environment - there could be literally thousands of parties listed! What are the current Fortune 500 companies doing, as many of those use Linux in one form or another?" update several people have pointed out that this is about companies who are violating the GPL, not everyone.

233 comments

  1. Not just Linux by balster+neb · · Score: 4, Insightful

    It appears that this would apply to any free software, not just Linux. It would apply to at least all GPL'd software, including gcc, etc.

    1. Re:Not just Linux by Anonymous Coward · · Score: 1, Informative

      This is only for violations of the GPL, not for just using the software.

    2. Re:Not just Linux by HugePedlar · · Score: 2, Funny

      Indeed - why does linux have a monopoly on IP?

      How are these companies supposed to really list out all the IP owners...

      Well, start with 192.168.0.1 and work your way up I suppose.

      --
      Argh.
    3. Re:Not just Linux by tobiathan · · Score: 3, Interesting

      As one who has had the sad misfortune of suffering through a few SOX audits, it is more about how the auditors choose to interpret and apply the regulations, and less about the regulations themselves.

      There is also the argument about what constitutes a "material" defect or weakness. Unless someone is running the backbone of their financial system on Linux or other sw covered under GPL, this is probably not relevant as it would not be considered material to the integrity of their financial data.

    4. Re:Not just Linux by Anonymous Coward · · Score: 0
      192.168.x.x (and 10.x.x.x, 127.??? (not sure on the mask for this one)) is not owned by anyone.

      For the other IP just run a script calling /usr/bin/whois for each address.

      Oh the humanity!

    5. Re:Not just Linux by tambo · · Score: 2, Insightful
      This is only for violations of the GPL, not for just using the software.

      But I don't know how "violation of the GPL" really connects with "ownership of IP."

      From TFA:

      "According to the study, the problem lies with the requirements of the Sarbanes-Oxley Act that companies disclose ownership of intellectual property to their shareholders. The study indicates that dozens of companies are discovered each year to have violated the terms of GPL, and if they are public companies, they are violating Sarbanes-Oxley."

      Huh? Taking this statement at its face value: A company that receives software under the GPL does not "own" any "IP." They merely have a license to use the IP embedded in the software. Whether or not they violate that license has no bearing on "ownership" of IP... and if they don't "own" any IP in the GPLed software, then they haven't violated Sarbanes-Oxley by failing to "reporting" any kind of ownership.

      "Linux is a powerful operating system," says Jay Michaelson, an author of the study and Wasabi Systems' General Counsel. "But if companies violate the license, the consequences can be more severe than they think. If companies are violating the GPL, they don't have the right to use that software. And if they don't have the right to use the software, they're violating federal law if they claim that they do."

      Huh? Last I checked, the GPL was a private license. If they violate a private license in any way, then they are liable for breach of contract, which is in no way "federal law." The only "federal laws" they are violating are federal IP laws - but again, those laws only create private causes of action by the IP owners. License violations do not create liability to the federal government (unless the federal government actually owns the IP.)

      As best I can tell from TFA, this gentleman means that companies are modifying GPLed code and then reporting it to shareholders as their "owned" IP - but that this claim of IP "ownership" is incorrect and fraudulent, since their violation of the GPL precludes them from "owning" their modifications. But TFA is way too light on details to be confident of this interpretation... and I'm not completely sure that the GPL works that way, anyway.

      - David Stein

      --
      Computer over. Virus = very yes.
    6. Re:Not just Linux by Anonymous Coward · · Score: 0
      This is only for violations of the GPL, not for just using the software.

      I think this is good. It gives corporations more of an incentive to not violate the GPL.

      It also is good for investors; if a company is counting on stolen GPL code for their business model, the company will eventually be found out and have to stop the violation. The stock price may fall (or the company go bankrupt) as a result of the time it takes to rewrite the code (assuming they can't/won't release it).

      It may not be likely but anything is possible.

    7. Re:Not just Linux by tomhudson · · Score: 0, Flamebait

      This also means that any company that runs Windows is also in violation, unless they get full disclosure from Microsoft on all tech Microsoft has licensed/stolen/whatever.

      More fud from team99 is my guess. Boy are the MS shills desperate.

    8. Re:Not just Linux by Hal_Porter · · Score: 5, Funny

      As a certified Internet Lawyer I can advise you that it doesn't apply to FreeBSD. That's right, use Linux and go a federal pound me in the ass prison, or use FreeBSD and stay, well Free.

      Hence the name.

      Here's an Operating System fud^H^H^Hfact sheet

      1) Windows. Expensive. Not FreeBSD. You may BURN in HELL forever if you use it.
      2) Linux. Free Unix type OS, unquantifiable risk of prison rape. No strlcat.
      3) NetBSD. Let's face it do you really need all those platforms? Why not concentrate on optimising for today's mainstream hardware. My friend Bob installed it on his new box, and it caught fire and burned down his house.
      4) OpenBSD. Kick ass security. Theo seems a bit odd. Lags a bit feature and driver wise. There are reports that OpenBSD users may die of untreatable brain cancer.
      5) MacOs. Slick. Good for clients. Expensive. You may have to grow a goatee, wear black polo necks. Mac OS users won't accept you as one of them, they will mock your dress sense behind your back.

      Face it, FreeBSD is the best choice for every person in the world. Fact.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
    9. Re:Not just Linux by Anonymous Coward · · Score: 0

      I think it's referring to a particular type of GPL violation.

      I think it might be referring to companies which have not violated the GPL by not correctly crediting the GPLed code to its authors.

      By not crediting the IP correctly, they are therefore also violating Sarbanes-Oxley because they're not admitting someone else owns the IP to that code.

    10. Re:Not just Linux by Cstryon · · Score: 1

      That really SOX.. I couldn't helpmyself.

      --
      Indoctrinate : to instruct especially in fundamentals or rudiments Educate : to develop mentally, morally, or aestheti
    11. Re:Not just Linux by Marillion · · Score: 4, Informative
      The article is really focused on GPL violators.

      This really seems to apply to companies that incorporate Linux into a product. Well known examples include Tivo and the Linksys WRT54G (v4 and below). In such a case, Linux is an important part of those companies' product portfolio and thus and important factor in assessing the tangible and intangible worth of that company. For the companies that only use Linux in operational capacities, it wouldn't have any impact unless SCO wins. (yea, right)

      Put another way: ownership of a patent on a hammer is important for a tool maker, but not for the construction company that uses it.

      --
      This is a boring sig
    12. Re:Not just Linux by susano_otter · · Score: 1

      So let me get this straight:

      This is about companies that violate a license agreement being liable under legislation aimed at curbing unethical business practices such as violating license agreements?

      Is this related to the article from the other day about how the automobile made it so that nobody knows how to ride a horse anymore?

      --

      Any sufficiently well-organized community is indistinguishable from Government.

    13. Re:Not just Linux by arkanes · · Score: 2, Informative
      Lots of wrong here ;) I shall try to some up.

      One, the GPL is a license, not a contract, and violations of it fall under (federal) copyright law, not contract law (and violation of the GPL could quite likely fall under criminal copyright infringment, although such a case has never been pressed). But thats not what he's talking about - he's talking about needing to report your IP ownership under Sarbanes-Oxely, and both failing to report that and lying in it are violations of (federal) securities law. So if you're violating the GPL (note that this doesn't cover normal use, but people who're distributing products based on Linux and the like), then your SOX statements will be either incomplete or false (or truthful, but that'd be stupid. I guess it's kinda like how your IRS tax forms say you have to declare embezzled or other illegal income), so it's not just some unwashed hippies suing you that you might have to worry about, but nasty feds coming down on you for SOX violations.

    14. Re:Not just Linux by tambo · · Score: 1
      One, the GPL is a license, not a contract...

      By definition, a license is a contract. A contract is just an exchange of rights. In the case of a software license, you are

      ...and violations of it fall under (federal) copyright law, not contract law...

      They fall under both. First, your violation of the license (which, again, is a contract) creates liability under copyright law. Second, since you no longer have permission to use the copy of the software in your possession, you are in violation of federal copyright law, which creates private liability to the licensor... precisely as I wrote in my parent post.

      ...he's talking about needing to report your IP ownership under Sarbanes-Oxely, and both failing to report that and lying in it are violations of (federal) securities law.

      In the portion that I quoted, he vaguely referenced "federal law" for violating a license. I was listing the kinds of laws that typically come into play in licensing disputes - which usually do not include any kind of federal securities law.

      Next, I discussed how the Sarbanes-Oxley provision might apply, and why I didn't think that it did.

      Helpful tip: You can find all of that stuff in my original post. Hust click your left mouse button on that little scrollbar on the right side of this window, and drag it upward a bit.

      - David Stein

      --
      Computer over. Virus = very yes.
    15. Re:Not just Linux by arkanes · · Score: 1
      They fall under both

      No, absolutely wrong. Contract law is a seperate category and is not related to copyright law. A copyright license is different legal entity than a contract, and violating one is not a breach of contract - it is a totally seperate action, falling under different legislation, with different issues and different penalties.

      Second, since you no longer have permission to use the copy of the software in your possession, you are in violation of federal copyright law

      Blah blah blah, copyright doesn't cover use, blah blah blah.

      In the portion that I quoted, he vaguely referenced "federal law" for violating a license.

      If you'd use that magic scrollbar thingy and look down a couple paragraphs you'd see where he mentions securities law. Maybe you should read the *whole* article before posting next time. Of course, even if you don't know how to work a scrollbar, theres this thing called "context" that might lead you to believe he's talking about Sarbanes-Oxley.

      Next, I discussed how the Sarbanes-Oxley provision might apply, and why I didn't think that it did.

      No, you made up some random case that wouldn't be covered by SOX and knocked down the strawman iwth great strength and power, totally ignoring the actual point made by the article.

    16. Re:Not just Linux by starvo · · Score: 1

      Makes me wonder about LGPL and other GPL-derivative licenses.. if those are also violating SOX. Things like this do need to be accounted for, but in this case, it might be far too much, for far too little of a return.

      --
      http://thepoliticalgeek.com/blog/ Politics for Geeks.
    17. Re:Not just Linux by cpt+kangarooski · · Score: 1

      Copyright law and contract law are two distinct bodies of law, yes. However, contracts governing copyright licensing are absolutely commonplace, and breaching such a contract would give rise to causes of action for both copyright infringement and breach of contract.

      In the commercial field, licenses typically take the form of an exchange of a promise for party A to be free to use a work, within certain conditions, and an exchange of party B to pay for that by promising money or something of value.

      The GPL is substantially the same. The interesting part is that a condition has to arise (distribution) for party B to have to do the action it promised to do (distribute source) and that party A isn't the only beneficiary of party B's obligation. But that's about it for unusual things in the GPL.

      I don't feel like getting into it so soon again (feel free to look through my recent posts), but the GPL is a contract. And while one could sue violators under either contract law or copyright law, or both simultaneously, the smart money would be on both simultaneously. You have to prove the elements of each offense, but since lack of authorization must be proven for the copyright infringement claim to succeed, you're already doing this anyway. If you win, you can not only get extra damages (stacking the copyright and contract damages together) but may be able to get injunctive relief from the copyright action that wouldn't normally be available in a contract dispute.

      As for SOX, I'll leave that for people more familiar with it.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    18. Re:Not just Linux by Anonymous Coward · · Score: 0

      I think the reason people in the OSS community would rather pretend the GPL is not a contract is because its validity has been attacked (probably not very credibly) on those grounds before.

      Thus, I think people think it's "safer" to simply rely on the indestructible, unstoppable, rightsholders-uber-alles machine that is copyright, given the success that mass-media copyright holders have had in asserting their rights at every opportunity.

    19. Re:Not just Linux by tcgroat · · Score: 1
      But if companies violate the license, the consequences can be more severe than they think. If companies are violating the GPL, they don't have the right to use that software. And if they don't have the right to use the software, they're violating federal law if they claim that they do.

      The GPL concerns copyright: the ability to legally distribute the work to others. Companies may use software under the GPL license in any way they see fit; attempts to limit usage are the stuff of shrink-wrap EULA restrictions. The GPL specifically disclaims usage restrictions (see section 0 of the license: http://www.gnu.org/licenses/gpl.txt.

      The GPL violations mentioned in the article apply to distribution of embedded systems and derviative works containing GPL code, not to companies using GPL software internally. Keep that distinction in mind to understand the context of the article.

    20. Re:Not just Linux by mister_slim · · Score: 1

      That's the kind of shoddy work that pervades the PC world. Those guys at Penny-Arcade couldn't even get my name right.

    21. Re:Not just Linux by cpt+kangarooski · · Score: 1

      It's unfortunate that people see a dichotomy there. An actual case seeking enforcement would pretty certainly involve both causes at once. There's no reason to do only one or the other.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    22. Re:Not just Linux by ultranova · · Score: 1

      The GPL is substantially the same. The interesting part is that a condition has to arise (distribution) for party B to have to do the action it promised to do (distribute source) and that party A isn't the only beneficiary of party B's obligation. But that's about it for unusual things in the GPL.

      Incorrect. Party B has made no promises whatsoever towards Party A. Party A has simply granted Party B a permission to engage in certain activities if certain conditions are met. This is unilateral declaration, and does not equate to Party B promising anything.

      I doubt very much that me granting permission to you equates to you making a promise to or entering a contract with me, even in the crazy US legal system.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    23. Re:Not just Linux by Anonymous Coward · · Score: 0

      If it's unilateral, and the GPL is in fact no contract, then the permissions that it grants can be withdrawn, also unilaterally.

      For instance, I own the copyright in a library you use in a program you develop. My library is licensed under the GPL. Your project is, too, and it's on the basis of the GPL that you're able to distribute your program using my library.

      Let's say I meet you. I don't like your face. I withdraw the license. Under your theory, you're SOL. Your product is infringing and you have no recourse but to stop using my library. Not just "any future version" of my library, but the existing version. Immediately.

      Now, the fact is, I can't withdraw the license, just because I don't like your face. The reason that I can't is because we have a contract. I've made a promise to you (that you can use my library in your program), and you to me (that your program will be made available under certain terms), and that's why I can't just tell you to piss off. In fact, you'd probably have cause of action to sue me, if I fucked with you in such a way and actually or potentailly caused you damage as a result. And, guess what? Your cause would be under contract law.

      It goes both ways.

    24. Re:Not just Linux by tambo · · Score: 1
      Incorrect. Party B has made no promises whatsoever towards Party A.

      Look - I'll give you four reasons why every software license, including the GPL, is a contract:

      1) The obligations are entirely mutual; each party has

      • Party A promises not to sue Party B for activities that are permitted by the license (use of the software, copying, etc.)
      • Party B promises to use Party A's open-sourced software only as permitted by the license (attribution, indemnification of Party A for liability from redistributed software, etc.)

      2) The benefits are also plainly mutual:

      • Party B gets to use the software.
      • Party A gets the assurance of being attributed in redistributions, of having the original license and source code distributed with redistributions, etc.

      3) You attempt to make much of the "unilateral" nature of the contract. There's a whole body of contracts called "unilateral contracts," where an offer is made to the entire public, and anyone may take advantage of it. Commercial advertisements, for instance - the newspaper ad offering "three cans of peaches for $1" is an offer to accept the contract; you do so by showing up at the store and carrying three cans of peaches to the cash register.

      4) If there's a violation of a license, what body of law do you use? There is no body of law called "license law." There is a very large body of law called "contract law," and the cause of action for breach of contract covers all of the elements of this transaction. You might also file it as a violation of your copyright, but that would be a much more circuitous and difficult cause of action, and would foreclose some remedies that you might want (breaches of contract can lead to restitution, an accounting, an order for specific performance, etc.; copyright violations are usually relieved only with damages or injunctions.)

      - David Stein

      --
      Computer over. Virus = very yes.
    25. Re:Not just Linux by extremescholar · · Score: 0

      Unwashed Hippies? Why, I showered just last month.

      --
      Using the Freedom of Speech while I still have it.
    26. Re:Not just Linux by tambo · · Score: 1
      A copyright license is different legal entity than a contract...

      No, it's not. You grant a license to a copyrighted work - or a patented work, or a trade secret, or any other kind of IP - by means of a contract.

      See this link for a typical license - this one is in common use by the University of Texas. Note the title - "SAMPLE COPYRIGHT LICENSE AGREEMENT" - and that the terms of the instrument are purely contractual in nature.

      If you're so certain that a license is a distinct legal instrument from a contract, then go find an example of it. Or find a statement on a law-related website indicating this. Or find a court opinion, or a comment in the Restatement and Uniform Commercial Code, differentiating "license" from "contract." In other words, put up or shut up - don't just keep repeating your misconception.

      Blah blah blah, copyright doesn't cover use, blah blah blah.

      Your vitriol must be clouding your reading comprehension skills.

      I didn't write that copyright covers "use." I wrote that you no longer have permission over the software. Violation of the license negates the license, and also negates the licensor's consent to your possession of a copy. Hence, the copy in your possession becomes unauthorized, and you are in violation of the licensor's copyright.

      - David Stein

      --
      Computer over. Virus = very yes.
    27. Re:Not just Linux by Anonymous Coward · · Score: 0

      Yes i think the same!

      Pagerank

    28. Re:Not just Linux by Maximalist · · Score: 1

      Spot on. Companies that are cheating the GPL community don't think there could be serious consequences. But if they lie to their investors about cheating the license, then there _could_ be nasty outcomes. Sarbanes is great for the GPL...

    29. Re:Not just Linux by Maximalist · · Score: 1

      Unless, that is, the asset in question is the company's inventory. If a business makes devices with some GPL'ed software embedded in them, and doesn't release the code, the GPL automatically terminates their right to distribute their inventory. So they have a bunch of inventory on their books that they can't legally move. Saying it is worth anything is probably a material misrepresentation. I think that is where the SOX trap comes into play.

  2. Ownership != utilization by SIGALRM · · Score: 4, Insightful
    companies are required to "disclose ownership of intellectual property to their shareholders." How are these companies supposed to really list out all the IP owners if they were to install a full desktop or server environment - there could be literally thousands of parties listed!
    There's a big difference between ownership and utilization. For example, if McDonalds employs the use of WinXP workstations in their facilities, that does not mean that they own, but instead license Microsoft's IP.
    --
    Sigs cause cancer.
    1. Re:Ownership != utilization by Mike+Markley · · Score: 1

      Yes, and the article itself says that the risk is if the company is VIOLATING the GPL. The submitter read only the IT Observer headline before submitting this, or didn't understand the article.

    2. Re:Ownership != utilization by AltGrendel · · Score: 1
      Agreed!

      This whole thing is a Red Herring, just another spin on the FUD wheel.

      --
      The simple truth is that interstellar distances will not fit into the human imagination

      - Douglas Adams

    3. Re:Ownership != utilization by Anonymous Coward · · Score: 0

      Regardless, GP makes a valid point. You can't be penalized for not disclosing ownership of IP that you don't really own.

    4. Re:Ownership != utilization by bedroll · · Score: 5, Interesting
      There's a big difference between ownership and utilization. For example, if McDonalds employs the use of WinXP workstations in their facilities, that does not mean that they own, but instead license Microsoft's IP.

      I completely agree. Just to expand on that, it should also be noted that the GPL does not transfer ownership of IP unto you, it merely gives you license to modify and reuse it. A company would then have to disclose their IP after they changed that code.

      Reading the article, it appears that the author is a little confused. The second sentence talks about violating the GPL. You don't violate the GPL by simply using Linux. So maybe the real issue is with companies that release GPLed software without proper attribution and GPL compliance, but that's not the way the article reads.

    5. Re:Ownership != utilization by bedroll · · Score: 1
      but that's not the way the article reads.

      Actually, the article does read that way. Oops.

    6. Re:Ownership != utilization by SilverspurG · · Score: 1
      A company would then have to disclose their IP after they changed that code.
      Only to people who have licensed their product. There's no requirement that they put their changes out in the open for everyone.
      --
      fast as fast can be. you'll never catch me.
    7. Re:Ownership != utilization by Firehed · · Score: 2, Interesting
      Can't this just be as simple as "We use/have modified the xxx distribution of Linux. If you want to know everything and anything about it, here's Google/a link to a site that has every Linux contributer ever. And if you want to know how it works and exactly who wrote what line of code, here's the source code."

      In any case, do shareholders actually care? Maybe I'm not thinking about this hard enough, but I honestly doubt it. As long as the company they own a share of isn't doing anything distinctly illegal (last I knew, using free software wasn't, but IP laws are getting really wierd), I doubt whether most people care whether they're using Redhat or Mandrake as long as they're still a profitable company.

      --
      How are sites slashdotted when nobody reads TFAs?
    8. Re:Ownership != utilization by Anonymous Coward · · Score: 2, Interesting

      For example, if McDonalds employs the use of WinXP workstations in their facilities, that does not mean that they own, but instead license Microsoft's IP.

      Actually, they do own the physical media, and they own a copy of the software. The EULA restricts what McD can do with the software.

      However, McDonalds does not own the copyright on windows XP. If they did own the copyright, McD would have to disclose that they own the copyright, because the copyright to windows XP is worth quite a bit of money - it is a significant asset.

    9. Re:Ownership != utilization by bedroll · · Score: 1
      Actually, they do own the physical media, and they own a copy of the software.

      Read his post again. He never mentions anything of the media. He only mentions IP, which is the blanket term for copyrights and patents, and I think they bundle trademarks in there too.

    10. Re:Ownership != utilization by John+Hasler · · Score: 1

      > Can't this just be as simple as "We use/have modified the xxx
      > distribution of Linux. If you want to know everything and anything
      > about it, here's Google/a link to a site that has every Linux
      > contributer ever.

      That is far in excess of what they would need to do. The don't need to say anything at all about mere use or unmodified distribution as the does not give them ownership of any "IP". If they make modifications a brief description of the program modifed and the modifications they made would suffice. There is no need for them to go on about who else contributed. If the value of their contribution is small I doubt that they are required to reveal it at all.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    11. Re:Ownership != utilization by Anonymous Coward · · Score: 0

      I do not necessarily agree. It depends entirely on how Mcdonald's obtained their copies of Windows.

      The courts have established clearly and repeatedly that software purchased in an OEM bundle, or off-the-retail-shelf (as opposed to those obtained through prior contract with the software publisher) are PURCHASED PRODUCTS, just like books. They are not "licensed" at all. In those cases Copyright law prevails. EULAS have no legal stading and are completely void.

    12. Re:Ownership != utilization by kahanamoku · · Score: 1

      Actually, they do own the physical media, and they own a copy of the software Yes, but do you truely OWN it? or are you leasing it indefinately for the initial fixed price? There are some that believe the latter to be true.

      --
      ----- Concentrate on promoting more than demoting.
    13. Re:Ownership != utilization by Anonymous Coward · · Score: 0

      This is an incorrect interpretation of Copyright law.

      If they purchased the product in any fashion other than via prior contract with Microsoft, then they own the software itself, not just the media. As this relates to your specific point: if the software is thus owned (not licensed, which is only possible by prior contract) then shrink-wrap EULAs have NO legal authority whatever. Even if they otherwise would, they would constitute "contracts of adhesion", which again are legally void.

      For example: except by prior contract, a publisher has no legal authority to tell you how to use your purchased book. The authority here is solely Copyright law, which states that you may not sell copies. However, there is no legal restriction against, say, reverse-engineering.

      The Corporate lawyers want you to think otherwise, but that does not make it so.

    14. Re:Ownership != utilization by bedroll · · Score: 1
      That's still not an IP holding. You don't own the copyright, you only own a copy. You have to explicitly buy the copyrights in order to own them, and buying a copy of Windows does not constitute Microsoft selling their copyrights. GP was right, no matter how McDonald's buys their copy of Windows they do not suddenly own the copyright unless Microsoft has sold the copyright and not a copy.

      Aside from that, your argument seems to have very little to do with what I said. I said that GPL gives you license to modify the code, not ownership of the copyrights. This is still true, and it will continue to be true as the GPL *is* a license, so all it can do is to license.

    15. Re:Ownership != utilization by cpt+kangarooski · · Score: 1

      What's the difference? A court will look at what the nature of a transaction is, rather than the label the parties choose to put on it. If you say that you're leasing something out, forever, for an initial lump sum, what you've really done is sold it.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    16. Re:Ownership != utilization by Anonymous Coward · · Score: 0
      Just to expand on that, it should also be noted that the GPL does not transfer ownership of IP unto you, it merely gives you license to modify and reuse it. A company would then have to disclose their IP after they changed that code.
      No, NO, NO. This is what that the "GPL is Viral" crowd would have you believe. You only have to disclose your changes if you DISTRIBUTE the code to others.
    17. Re:Ownership != utilization by Anonymous Coward · · Score: 0
      A company would then have to disclose their IP after they changed that code. Only to people who have licensed their product. There's no requirement that they put their changes out in the open for everyone.

      A public company has to satisfy their disclosure requirements under the act; which means they have to report what IP they own, exactly.

      When it comes to commercial use, they do have to put their actual changes out when they distribute software: either by including the complete source code with each and every copy they sell, OR by accompanying the distribution with a written offer which must be open to any third party (Not just their customers), and valid for three years, to distribute the full machine-readable source code, at no charge other than the bare cost of physically performing the source distribution, per section (3).

    18. Re:Ownership != utilization by bedroll · · Score: 1
      Oh for christ's sake, put it in context! Read the article, read the description, read the posts.

      The GPL doesn't make you disclose that. I know that, you know that, anyone who's read this website more than five times knows that. Sarbanes-Oxley is what forces the company to disclose this. That's what this entire discussion was about.

      I apologize if those who take my post out of context, or don't consider it carefully, might think that I'm saying that the GPL requires this. I should have put Sarbanes-Oxley somewhere in that sentence, but when I was writing it I knew the context was there and it seemed perfectly clear what I was saying.

  3. This makes no sense. by afeinberg · · Score: 1, Interesting

    Responsibility for this should rest with the Linux vendors. Companies can disclose their Linux distributions as packaged by [insert vendor here], the vendor should be able to easily see who write what by an examination of source code and README files.

    1. Re:This makes no sense. by Anonymous Coward · · Score: 0

      As pretty as that sounds, SOX makes no such distinction!

    2. Re:This makes no sense. by kadathseeker · · Score: 1

      Responsibility for this should rest with the Linux vendors

      Bittorent?

      --
      The 'Net is a waste of time, and that's exactly what's right about it. - William Gibson
    3. Re:This makes no sense. by bemenaker · · Score: 1
      I don't think that is what the article said. The article is referring to companies that violate the GPL, and when they do that, they are violating SOX.

      Unless I am totally missing something here.

  4. Is ownership relevant? by QuantumFTL · · Score: 2, Interesting

    As long as something has been liscenced under GPL, the owner cannot assert additional restrictions, or revoke the liscense - therefore how is the owner relevant to the stockholders, if no such change can take place?

    1. Re:Is ownership relevant? by ClamIAm · · Score: 1
      the owner cannot assert additional restrictions, or revoke the liscense

      Exactly. Also, most Free/Open software does not have a EULA attached to it that deals with personal use (is this even allowed under the GPL?). So everyone is then free to do whatever they want with it, as long as they aren't distributing it. The only reason I can see where there might be problems is if some proprietary code got leaked into a "Free" package, and the people whose code was leaked started suing people.

      IANAL.

  5. What's the point? by lunk · · Score: 1

    The shareholders already have the exact same rights to the software that the company that is using them. Does this topic really make any point that isn't just an academic exercise? I think that the entire company can disclose their open source intellectual property rights with a single all encompassing word, Everyone.

    --
    http://tf2.digitaljedi.com
  6. Can't violate the GPLv2 if all you do is use Linux by Anonymous Coward · · Score: 2, Insightful

    You have to distribute Linux outside of your organization in violation of the terms of the GPLv2 in order to have any licensing problems with Linux.

    Mere use of Linux by a company cannot ever be a violation of the GPLv2 that Linux is licensed under.

    This is FUD issued by a company that wants you to buy their BSD based embedded OS product.

  7. wait a minute... by Anonymous Coward · · Score: 0

    companies aren't doing what they're supposed to be doing???

    Doesn't sound like news to me...

  8. Reminds me this of by recoiledsnake · · Score: 0, Offtopic

    Might Linux Violate Sarbanes-Oxley. yoda talk day today on slashdot is it?

    --
    This space for rent.
    1. Re:Reminds me this of by Anonymous Coward · · Score: 0

      I can understand your confusion, as this is well-formed grammar, and thus not familiar to most slashdotters. "Might Linux Violate Sarbanes-Oxley?" is the question form. You are thinking, most likely, of the statement, "Linux Might Violate Sarbanes-Oxley." You could, in theory, simply place a question mark after this form and it would constitute a question, but the article title is clearer.

  9. explain to me again by blackcoot · · Score: 3, Insightful

    how exactly using linux in violation of the gpl is a violation of sarbanes oxley? the article does an awful lot of handwaving but doesn't actually explain any of the hows or whys.

    i'll have to read again, but it looks like this is f/oss trying its hand at the fud game.

    1. Re:explain to me again by Clived · · Score: 1

      I agree with you completely. I am in the process of bringing myself up to speed as a SOX consultant, and Section 404 which deals with internal controls leaves it up to the company in question to implement IT control processes to safeguard financial data stored on the servers. Such control processes include but are not limited to patch management, password management, server identification by platform, etc. The act does not highlight these processes specifically but insists in control processes which are relevant to any organization in the normal course of their business process. I fail to see how Linux usage would violate SOX requirements. www.sarbanes-oxley-101.com has more information on the subject.

      --
      Clive DaSilva Email: clive.dasilva@gmail.com Ubuntu 18.10 Kernel 4.18
    2. Re:explain to me again by nacturation · · Score: 1

      how exactly using linux in violation of the gpl is a violation of sarbanes oxley? the article does an awful lot of handwaving but doesn't actually explain any of the hows or whys. i'll have to read again, but it looks like this is f/oss trying its hand at the fud game.

      Possibly. People here rail when the DMCA or Patriot act gets applied to situations where the law wasn't intended to apply. Is this a stab at using SOX regulation as the stick to enforce unrelated laws? Violating the GPL is license infringement, much in the same way that downloading most MP3s on P2P is copyright infringement. There's a lot of precedent to enforcing license agreements and/or copyright law such that SOX compliance shouldn't even play a role.

      --
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    3. Re:explain to me again by Anonymous Coward · · Score: 1, Funny
      how exactly using linux in violation of the gpl is a violation of sarbanes oxley?

      IANASOXC (... SOX Consultant), but I believe the logic goes like so:

      You, as CEO, need to be able to certify that your Linux use is GPL-compliant. Otherwise you'll face the unexpected cost of paying attorneys fees, judgements and/or settlements brought by the Evil Jackbooted Enforcers of the FSF. Now you have this humungous risk-related liability that is not presented in your financial reporting to the shareholders. That means you told a lie. And that means you'll have to become Bernie Ebber's cellmate and man-wife.

    4. Re:explain to me again by iabervon · · Score: 1

      Essentially, if the company claims to its shareholders that it can do something IP-related, and they are wrong, that's now securities fraud. Think of it this way: if a company doesn't have enough licenses for their commercial software, and the BSA knocks down their door and takes their money, their shareholders can claim that they were led by the company to believe that it wasn't going to get hit by this sort of thing, and so the SEC steps in and punishes the company for misleading the investors. Similarly, if the company claims that it can have a particular business model, and tells investors that, and it turns out that the GPL prohibits acting like that, not only do the copyright holders of the code the company is using get to make the company shape up, but the company's investors (as represented by the SEC) get to punish the company.

      Of course, simply using GPL software doesn't require that you accept the GPL, since when people distribute software under the GPL, they actually give you ownership of copies of the software, which you can make use of yourself without a license at all. So most businesses have no need to accept the GPL and aren't at risk of messing up.

      Also, the owners of copyrights on GPL code are generally pretty nice about it. They tend to demand from violators things that aren't really that big a deal; most often, the company has to release a few minor changes, and has to arrange linking such that the GPL-covered parts can be replaced by users who don't have source to the proprietary parts (i.e., the proprietary parts are often either scripts, or not linked, or the OSS parts are LGPL). Much of the time, the only requirement is that the company admit to its customers that they didn't actually write any software of their own. But the investors, on the other hand, have invested in a proprietary software company with a particular business model, and may be inordinately unhappy to discover that the company isn't what they thought. So the SOX settlement may actually be much more damaging to the company than the GPL settlement.

    5. Re:explain to me again by Anonymous Coward · · Score: 0

      We are required to restrict programmers' access to production (financial system) environments and to restrict non-programmers' access to source code. With an open source system, those two requirements become much more difficult. Somebody could be working in the accounting department and moonlight on the side and we'd never realize that one of our programs was written by someone we didn't consider to be a programmer.

    6. Re:explain to me again by zcat_NZ · · Score: 2, Informative

      The article was writtent by a company that does embedded systems. In this context, 'using' GPL software means putting it into hardware and selling it; something the rest of us normally think of as 'distribution'

      Here's a semi-realworld example that probably violates several laws as well as the GPL; I'm going to assume that Taiwan has similar laws.

          Some small company in Taiwan (let's call them Edimax) decides to make a cheap wireless access point. They shop around and find a very nice, very cheap wireless chipset. Technical details are only available under an NDA but that's OK, they make hardware and don't plan to give out that kind of details anyhow. They want a nice web interface, firewall and NAT features, etc, as cheaply as possible they base it on some 'free' embedded Linux code. A few months and quite a lot of design and programming time later they have a product shipping. It works well and it's really, really cheap to build so Edimax's investors are making lots of profit, and therefore happy.

      But along comes the nasty FSF and points out that they can't ship the product unless they release the source code, complete with the modifications they made to get their cheap wireless chipset working. Oops, they signed an NDA and aren't allowed to distribute that source code which leaves them with only one option. They have to redesign the product from scratch (using BSD, which they probably should have chosen from the beginning) or kill the product line completely. Either way, the product is no longer as cheap and profitable as it was.

      The investors are no longer happy.

      --
      455fe10422ca29c4933f95052b792ab2
    7. Re:explain to me again by laptop006 · · Score: 1

      Or one of the companies that rebadge the hardware release all the source they have to the net, and get a lot of good will for them, and a lot of bad will for edimax (I in fact still have a copy of that tarball on my laptop)

      --
      /* FUCK - The F-word is here so that you can grep for it */
    8. Re:explain to me again by zcat_NZ · · Score: 1

      Cool. Although I don't feel inclined to play with the hardware, It does everything I need already. I don't suppose you could mail me a copy of that just in case I ever change my mind?

      --
      455fe10422ca29c4933f95052b792ab2
    9. Re:explain to me again by laptop006 · · Score: 1

      It's about 150MB, it should be up on the net somewhere, try the melbournewireless.org.au wiki

      --
      /* FUCK - The F-word is here so that you can grep for it */
  10. GPL violators are at risk by crumley · · Score: 5, Informative
    The synopsis above is misleading. Its is GPL violators, not simply GPL users who are at risk. From the article:
    "Linux is a powerful operating system," says Jay Michaelson, an author of the study and Wasabi Systems' General Counsel. "But if companies violate the license, the consequences can be more severe than they think. If companies are violating the GPL, they don't have the right to use that software. And if they don't have the right to use the software, they're violating federal law if they claim that they do."
    --
    Preventive War is like committing suicide for fear of death. - Otto Von Bismarck
    1. Re: GPL violators are at risk by Black+Parrot · · Score: 1
      > The synopsis above is misleading. Its is GPL violators, not simply GPL users who are at risk. From the article:
      "Linux is a powerful operating system," says Jay Michaelson, an author of the study and Wasabi Systems' General Counsel. "But if companies violate the license, the consequences can be more severe than they think. If companies are violating the GPL, they don't have the right to use that software. And if they don't have the right to use the software, they're violating federal law if they claim that they do."
      Which, if correct, means they're also in violation of the act if they have any unlicensed software of any type. (Which, I suspect, means every company on the planet.)

      Also, the text of the act doesn't seem to contain the phrase "intellectual property".

      --
      Sheesh, evil *and* a jerk. -- Jade
    2. Re:GPL violators are at risk by meringuoid · · Score: 1
      If companies are violating the GPL, they don't have the right to use that software.

      Yes they do. The right they do not have is to redistribute the software. Accept the GPL, reject the GPL, wipe your arse with it while shouting hosannas to Bill Gates' name if you like, you can still use Linux and the like.

      The GPL is a licence setting out conditions under which you can redistribute software to others, and incorporate it into your own products - which would ordinarily be a copyright violation. As far as I can tell, however, it says not one word about actually using the software itself.

      --
      Real Daleks don't climb stairs - they level the building.
    3. Re:GPL violators are at risk by ajs · · Score: 1
      Ah, but this too falls down. The GPL does not govern use, it governs distribution. In fact is is titled,
      GNU GENERAL PUBLIC LICENSE
      TERMS AND CONDITIONS FOR COPYING, DISTRIBUTION AND MODIFICATION
      Note the lack of the word "use" in that title.

      You do not violate the GPL by modifying software covered by it. You do not violate the GPL by using that modified software (even if you fail to ship those changes to anyone who asks). You do not violate the GPL by doing a great many things, as long as you don't distribute it. Once you try to distribute it, then you have to either a) do so within the constraints of copyright law and fair use doctrine (very hard to do with software) or b) accept the terms of the GPL.
    4. Re:GPL violators are at risk by Lodragandraoidh · · Score: 1

      IANAL

      The GPL doesn't say 'any and all' GPL'd software use is revoked if you violate the license for a particular program, revocation or your rights to copy, modify and distribute just the software that is being violated is revoked. The license furthermore states that use of the program is not covered under the GPL. That makes a big difference - and is not nearly as big a problem for businesses as the original headline indicated - particularly where use is concerned.

      So, if I (as a business) screw up and modify GPL'd program called 'gnome' and include it in my latest super-widget - without attribution, and other requirements of the license - that does not mean I have to stop using Linux or unmodified 'gnome' --- it just revokes my right to copy, modify and distribute my modified version of 'gnome'. That is how I read the license.

      I think this article is going a bit off the deep end.

      IANAL

      --

      Lodragan Draoidh
      The more you explain it, the more I don't understand it. - Mark Twain
    5. Re:GPL violators are at risk by masterLoki · · Score: 0

      How exacly are they violating GPL

    6. Re:GPL violators are at risk by level_headed_midwest · · Score: 1

      How about we form a GPL Software Alliance and carry on like the BSA does?

      --
      Just "gittin-r-done," day after day.
    7. Re:GPL violators are at risk by John+Hasler · · Score: 1

      > As far as I can tell, however, it says not one word about actually
      > using the software itself.

      It says this:

            Activities other than copying, distribution and modification are
            not covered by this License; they are outside its scope. The act
            of running the Program is not restricted, and the output from the
            Program is covered only if its contents constitute a work based
            on the Program

      Thus as long as you only use GPL software the license has nothing to do with you.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    8. Re:GPL violators are at risk by tambo · · Score: 1
      Ah, but this too falls down. The GPL does not govern use, it governs distribution.

      It's not directly covered, but it's indirectly covered to an almost complete extent.

      You're correct that the GPL disavows having any impact on whether or not a user is allowed to "run" the program:

      • "Activities other than copying, distribution and modification are not covered by this License; they are outside its scope. The act of running the Program is not restricted, and the output from the Program is covered only if its contents constitute a work based on the Program (independent of having been made by running the Program)."

      ...but if you give a copy of the program to anyone, you cannot block their right to distribute copies to world+dog with permission to run it. (They could charge any price, including $0, for extending the right to run the software to third parties.) That's why the GPL is largely antithetical to commercial software: every customer can become a competing vendor of your software simply by acquiring one copy from you.

      (I have released a good amount of software under an open-source license, but not the GPL. I require that no one can make commercial use of my software. I'm giving it away freely for other people to use, not for making a profit from it - e.g., by selling it outright!)

      - David Stein

      --
      Computer over. Virus = very yes.
    9. Re:GPL violators are at risk by jdavidb · · Score: 2, Informative

      I have released a good amount of software under an open-source license, but not the GPL. I require that no one can make commercial use of my software.

      Then what you are doing is not open source, and should not be called such. Please read the actual Open Source Definition, specifically point 6, rather than just assuming, "Well, I'm not one of those godless commies or smelly hippies from GNU, so I must be Open Source instead of Free Software."

      Do what you want to do with your own IP; that's cool. It's your right. But you are misrepresenting yourself if you claim what you're distributing is open source. Can you identify the license you used on the list of Open Source licenses? No? Then why are you calling it Open Source?

    10. Re:GPL violators are at risk by spitzak · · Score: 1

      1. That's why the GPL is largely antithetical to commercial software: every customer can become a competing vendor of your software simply by acquiring one copy from you.

      2. I have released a good amount of software under an open-source license, but not the GPL.


      You seem to be contradicting yourself. You said that you can't be a commercial vendor of GPL software because anybody can take it and redistribute it. But if that is true, that "competitor" can't be a commercial vendor either! This is because whatever reason you cannot be a commercial vendor also applies to them, they may also have competitors who will rerelease the software.

      But you have a huge advantage over your competitors (if you in fact are able to select your license, as you indicate). You really want to use the GPL on the code you send out, because you can dual license. Only you have the right to sell a copy that can be used in closed source. Only you are allowed to sell an enhanced version that has secret extra functions added. Everybody else who gets your software is operating under the "antithetical to commercial software" restriction you stated above. The GPL in this case is 100% to your advantage!

      You can of course just distribute your code with no license, so it is covered by copyright. This sounds pretty much like what you are doing, and would in fact give you even more advantage. However in todays world it is unlikely your software will get enough distribution and exposure. The GPL is probably a good compromise.

    11. Re:GPL violators are at risk by crumley · · Score: 1
      The main type violator of the GPL that is being discussed is emmbedded applications makers. The usual GPL violation in this case is that they don't make source available. So the "use" that they are not allowed to do is to distribute Linux (or other GPL software) in their embedded products.

      But yes, both I and the article were sloppy on this point.

      I don't want to waste much time defending the article, though, because it seems to me that Sarbanes-Oxley violation is at best a tangent to the issue of GPL violation.

      --
      Preventive War is like committing suicide for fear of death. - Otto Von Bismarck
    12. Re:GPL violators are at risk by tambo · · Score: 1
      Do what you want to do with your own IP; that's cool. It's your right. But you are misrepresenting yourself if you claim what you're distributing is open source. Can you identify the license you used on the list of Open Source licenses? No? Then why are you calling it Open Source?

      That's funny. Several licenses on the "list of Open Source licenses" limit the commercial use of the "open-source software," particularly as it pertains to the licensee's ability to charge fees. This prompted the following interesting exercise:

      • The Adaptive Public License:
        "A Distributor may charge a fee for the physical act of transferring a copy [of the Licensed Work or any portion thereof], which charge shall be no more than the cost of physically performing source distribution."
      • The Artistic License:
        "5. You may charge a reasonable copying fee for any distribution of this Package. You may charge any fee you choose for support of this Package. You may not charge a fee for this Package itself." ("Package" is defined as the software being provided under the license.)
      • Computer Associates Trusted Open Source License:
        "This License is intended to facilitate the commercial distribution of the Program by any Contributor. However, Contributors may only charge Recipients a one-time, upfront fee for the distribution of the Program. Contributors may not charge Recipients any recurring charge, license fee, or any ongoing royalty for the Recipients exercise of its rights under this License to the Program. Contributors shall make the source code for the Contributor Version they distribute available at a cost, if any, equal to the cost to the Contributor to physically copy and distribute the work. It is not the intent of this License to prohibit a Contributor from charging fees for any service or maintenance that a Contributor may charge to a Recipient, so long as such fees are not an attempt to circumvent the foregoing restrictions on charging royalties or other recurring fees for the Program itself."
      • Motosoto Open Source License:
        "If you sublicense the Licensed Product or Derivative Works, you may charge fees for warranty or support, or for accepting indemnity or liability obligations to your customers. You cannot charge for the Source Code."
      • OCLC Research Public License:
        "The Program must be distributed without charge beyond the costs of physically transferring the files to the recipient."
      • Open Group Test Suite License:
        "You may charge a reasonable copying fee for any distribution of this Package. You may charge any fee you choose for support of this Package. You may not charge a fee for this Package itself."
      • Reciprocal Public License:
        "Under the terms of this License You may not: Charge for the Source Code to the Licensed Software, or Your Extensions, other than a nominal fee not to exceed Your cost for reproduction and distribution where such reproduction and distribution involve physical media."

      It looks like a fair number of licenses blessed as "open-source licenses" attempt to control the commercial use of the downstream software. It shouldn't be contestible that businesses develop products for the purpose of charging an arbitrary price for them. By limiting the amounts that those businesses can charge for products based on GPLed code, these licenses certainly "discrimination" against the use of this software in the "field of endeavor" known as business.

      - David Stein

      --
      Computer over. Virus = very yes.
    13. Re:GPL violators are at risk by tambo · · Score: 1
      You said that you can't be a commercial vendor of GPL software because anybody can take it and redistribute it. But if that is true, that "competitor" can't be a commercial vendor either!

      No - they're still "commercial" vendors, but they're just bound by the same anti-"commercial" obligations under the GPL. The "commercial" value of the software is inversely proportional to the number of people who have copies.

      This is because whatever reason you cannot be a commercial vendor also applies to them, they may also have competitors who will rerelease the software.

      Correct. Hence, no one can realistically sell the software in a commercial context. Hence, "the GPL is largely antithetical to commercial software."

      Only you have the right to sell a copy that can be used in closed source.

      If we're talking about software that you developed based on other GPLed software - then, no, you can't do that. In that case, you cannot sell the software to someone to use in a closed-source context - because the obligations to keep open the original GPLed code flow down through you to your licensee.

      IF we're talking about software that you developed not based on other GPLed software - then, sure, you can license it to a closed-source developer under a non-GPL license. But now we're no longer talking about the GPL at all. Hence, I maintain my statement: "The GPL is largely antithetical to commercial software."

      You can of course just distribute your code with no license, so it is covered by copyright.

      My license goes much further: it includes a large bundle of rights for the downstream user (granted freely and without restriction) that would not be permitted under a tacit copyright distribution. About the only right offered by GPL and other open-source licenses, but withheld by my license, is the right to use it in a commercial context.

      - David Stein

      --
      Computer over. Virus = very yes.
    14. Re:GPL violators are at risk by ari_j · · Score: 1

      But use of the program "is not restricted" by the GPL. It may be restricted by copyright law in absence of a license to use it, so it is possible that violating the GPL and thus terminating your privileges under it would also revoke your right to use that particular piece of software since you would no longer have any license to it.

    15. Re:GPL violators are at risk by arkanes · · Score: 1

      The belief that copyright law covers use is a particularly odious urban legend, and it's propagated by people with a vested interest who want you to believe that. It is *not true* - you do not need a copyright license to "use" copyrighted material. The rights reserved to copyright holders are explicitly enumerated, and "use" is not one of them. It is not possible, ever, for reading a book to be (in and of itself) a copyright violation. Similiarly, it is not possible to violate copyright simply by running software (although, of course, you may have violated copyright in order to aquire that software).

    16. Re:GPL violators are at risk by jZnat · · Score: 1

      Then explain how Trolltech makes money off of selling proprietary licenses for GPL software? Legitly might I add.

      --
      'Yes, firefox is indeed greater than women. Can women block pops up for you? No. Can Firefox show you naked women? Yes.'
    17. Re:GPL violators are at risk by GigsVT · · Score: 1

      against the use of this software in the "field of endeavor" known as business.

      Selling the software is not using the software.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
    18. Re:GPL violators are at risk by ari_j · · Score: 1

      Does that definition of "use" include modifying it for personal use? How do you explain having received a copy of something to which you have no license? (This is an area of the law with which I am not that familiar.) What rights do you have to another's copyrighted work without a license, and how do you secure and make use of those rights? If the software was originally given to you in exchange for you accepting the terms of the GPL, do you still have a right to possess (forget using it, since that presumes possession) it when you violate the terms of the agreement under which you acquired it?

      It's clear that you can use software any way you want, internally, without violating the GPL. But what if you violate the GPL some other way - do you still have the right to use it? If so, why? There don't seem to be any good analogies to other copyrightable things to help this discussion out.

    19. Re:GPL violators are at risk by RobertLTux · · Score: 1

      um they are selling thier own software deal is a gpl have fun be happy and share b you pay U$ adn you can have fun be happy and NOT share

      --
      Any person using FTFY or editing my postings agrees to a US$50.00 charge
    20. Re:GPL violators are at risk by spitzak · · Score: 1

      I think you missed the words "dual license" in my post.

      The GPL is useful on your own code if you intend to make money but still want people to see the code. Only you can DUAL LICENSE. Nobody else can. Gives you a huge advantage, and you certainly can use the GPL on your code.

      Now I admit that other licenses such as what you propose may give you a bigger advantage, by dual licensing with something somewhat more restrictive than the GPL and thus making your commmercial version more valuable relatively. The main advantages of using the GPL are the name recognition and immediate knowledge by recipients as to what they can and cannot do with the code, and the fact that you can use third-party GPL code in your public version (unfortunately you have to replace this in your closed version, but you can either work on this while the public version is getting known, or you can use your future profits to purchase a non-GPL replacement for that portion).

    21. Re:GPL violators are at risk by tambo · · Score: 1
      Selling the software is not using the software.

      Sure, but the business is using the software for the purpose of selling a modified version. If the license hugely impacts what can be sold, then it also impacts how and why the business might use it.

      - David Stein

      --
      Computer over. Virus = very yes.
    22. Re:GPL violators are at risk by ajs · · Score: 1

      "Ah, but this too falls down. The GPL does not govern use, it governs distribution.

      "It's not directly covered, but it's indirectly covered to an almost complete extent."


      No, you're still incorrect. There is absolutely no restriction with respect to use at all. Period.

      Restrictions on distribution are not (even indirectly) restrictions on use. If you hand software to someone else, that is distribution. If you hack it up in-house and cause it to launch missiles at the FSF, you can do that, and the GPL has nothing to say about it (the law, on the other hand might take a dim view of missiles in Cambridge, MA). Of course, if the missiles are open source, you're going to have to offer source to the FSF, since you "distributed" the missiles to them ;)

      Seriously though, no matter how you feel about the GPL—like it or hate it—you need to come to terms with the fact that it starts and ends at controling distribution (and allowing modification, which is a sort of touchy question under copyright law, so the GPL allows it outright).

      If you can quote a line from the GPL which restricts use, or you can get an IP lawyer to claim that there's some hidden effect of the GPL that restricts use, please cite same. Otherwise, carry on with your "you can't make any money from my work" development (which, depending on how you word it, might actually constitute a usage restriction).

  11. What article did the OP read? by mattbelcher · · Score: 4, Informative

    Did the OP even read the article he submitted? It says that if a company violates the GPL, that this might also be a violation of Sarbanes-Oxley if they claim that they still have a right to use Linux despite the GPL violation. There is nothing about listing the IP holders. On an aside, I didn't think there was any violation to the GPL that could stop you from being able to use Linux. A GPL violation would make you lose your right to distribute it, right?

    --

    Shockwave Flash movies are the greatest thing to happen to non-sequitur humor since Japan.

    1. Re:What article did the OP read? by Hope+Thelps · · Score: 4, Informative
      There is nothing about listing the IP holders.

      Yes there is. The article says:
      According to the study, the problem lies with the requirements of the Sarbanes-Oxley Act that companies disclose ownership of intellectual property to their shareholders.

      It does go on to say:
      The study indicates that dozens of companies are discovered each year to have violated the terms of GPL, and if they are public companies, they are violating Sarbanes-Oxley.

      But that doesn't negate the first statement and the article never explains the connection between the two statements.
      --
      To summarise the summary of the summary: people are a problem. ~ h2g2
    2. Re:What article did the OP read? by __aawavt7683 · · Score: 1

      It feels like the only real way to violate the GPL is to distribute GPL software without distributing the source/copyright notice. In this violation, it is most likely that the companies would be using the GPL software source code in their own projects, but stating that they own the code or not giving the credit due to the original author.

      -DrkShadow

    3. Re:What article did the OP read? by criscooil · · Score: 1
      I didn't think there was any violation to the GPL that could stop you from being able to use Linux.
      You're right AFAIK, but in the FA, it seems clear (to me) that the author is using the word "use" for distribution, specifically in embedded systems.
      --

      My life is an open book ... up to a point.

    4. Re:What article did the OP read? by Krach42 · · Score: 2, Informative

      On an aside, I didn't think there was any violation to the GPL that could stop you from being able to use Linux. A GPL violation would make you lose your right to distribute it, right?

      By violating the GPL, you invalidate your license. Considering that the code is only offered under the GPL, if you invalidate your license, then you have no permission to use it at all. Distribute, or use, because you just simply don't have a license anymore.

      --

      I am unamerican, and proud of it!
    5. Re:What article did the OP read? by swillden · · Score: 2, Informative

      By violating the GPL, you invalidate your license. Considering that the code is only offered under the GPL, if you invalidate your license, then you have no permission to use it at all. Distribute, or use, because you just simply don't have a license anymore.

      This is incorrect. From the GPLv2:

      Activities other than copying, distribution and modification are not covered by this License; they are outside its scope. The act of running the Program is not restricted

      The FSF's position is that running a program doesn't require a license, only copying, distributing or modifying it does. It's possible that a court would disagree, since there are some rulings to the effect that since the act of running a program involves making an ephemeral copy of it (from disk to RAM, usually), running a copyrighted program without permission (a licence) from the copyright owner is infringement. In the case of GPL software, however, the fact that the license under which the software is distributed explicitly specifies that anyone is allowed to run it, and that it's not necessary to agree to the license in order to run it, an infringer could argue that the intent of the copyright holder was clearly to allow unlicensed ephemeral copies needed to run the program, thereby implying a license with no strings attached.

      IANAL, but my reading is that a company who violates the GPL loses the right to copy, modify and distribute, but can still use the software.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    6. Re:What article did the OP read? by Krach42 · · Score: 1

      IANAL, but my reading is that a company who violates the GPL loses the right to copy, modify and distribute, but can still use the software.

      My reading of the clause says the same thing. Which is far better than anything else anyone else put forward against me.

      You are correct. Right to use of a GPL program is implicitly granted by the distribution mechanism itself.

      As to all the other people who are arguing that some OTHER license gives this right by analogy are wrong. MS Windows does not have implicity right to use as long as you have a copy.

      The correct solution to the debate was to go to the source and show that the GPL declares that this right is implicit to everyone, and also unrestricted.

      --

      I am unamerican, and proud of it!
    7. Re:What article did the OP read? by cpt+kangarooski · · Score: 1

      It's possible that a court would disagree, since there are some rulings to the effect that since the act of running a program involves making an ephemeral copy of it (from disk to RAM, usually), running a copyrighted program without permission (a licence) from the copyright owner is infringement.

      Ephermeral copies aren't actionable. A MAI v. Peak sort of case would not consider the copies at hand to be ephermeral just because they're short-lived.

      In any event, 17 USC 117 provides a broad but limited exception for running and backing-up software. It would not be bad for it to be broader, however.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    8. Re:What article did the OP read? by swillden · · Score: 1

      Ephermeral copies aren't actionable. A MAI v. Peak sort of case would not consider the copies at hand to be ephermeral just because they're short-lived.

      I don't know enough about that to understand what you're saying. I'm interested, though, if you'd care to elaborate.

      In any event, 17 USC 117 provides a broad but limited exception for running and backing-up software.

      It does, but the language specifies that the "owner" of a copy of software can make copies incidental to running the software and can make backups. I've read some comments to the effect that the language might exclude Free Software from that exception. In practice, it probably doesn't matter because copyright holders of GPL software would have a hard time suing for use given the language in the GPL.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    9. Re:What article did the OP read? by cpt+kangarooski · · Score: 1

      I don't know enough about that to understand what you're saying. I'm interested, though, if you'd care to elaborate.

      If a work is fixed into a tangible medium long enough to be perceived or recopied, it's not going to be considered ephermeral. A truly ephermeral copy is not the sort that, if made, is enough to give rise to a lawsuit.

      I've read some comments to the effect that the language might exclude Free Software from that exception.

      Why? If I am authorized to make a copy, and there are no strings attached regarding who owns that copy, then I own the copy, and 117 is applicable. GPL software is some of the only software where one can absolutely rely on 117 applying. Of course, there's still the problem of third parties using the software (e.g. if I set up a public terminal running Linux, the public users are not the owners), which is something that needs to be fixed up. But generally 117 is good.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
  12. What are the Fortune 500 doing? by Syberghost · · Score: 3, Insightful

    We're using Linux and treating it just like we do Solaris, HP-UX, and Windows, where we also can't identify everybody who wrote the OS.

    The auditors don't seem to be having a problem with it. Wonder how much Microsoft paid IT Observer for that FUD?

    1. Re:What are the Fortune 500 doing? by hyc · · Score: 1

      Indeed. The article really makes no sense, someone would have to look up the specific clause in Sarbanes-Oxley they're referring to. Does the law require companies to disclose who the IP owners are of all the IP that a company uses? (That would be insane. I have no idea who owns patent #314159265 on the dinner fork I just used in the cafeteria, why should I even care?)

      --
      -- *My* journal is more interesting than *yours*...
    2. Re:What are the Fortune 500 doing? by GigsVT · · Score: 1

      Wonder how much Microsoft paid IT Observer for that FUD?

      They didn't. See my other posts. Wasabi systems is a BSD vendor with a strong bias against the GPL.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
    3. Re:What are the Fortune 500 doing? by SilverspurG · · Score: 1

      That doesn't mean that MS isn't funding Wasabe through some investment broker and encouraging them to use the freer-than-free BSD license to try and bog down the GPL machine which has started to actually mean something in the marketplace.

      Seriously. Would anyone even know if the VC firm working with Wasabe was owned primarily by big MS shareholders? For many years I've wanted to see a mapping of social connections for the leading industry giants.

      --
      fast as fast can be. you'll never catch me.
    4. Re:What are the Fortune 500 doing? by chrae · · Score: 1

      using Linux and treating it just like we do Solaris, HP-UX, and Windows, where we also can't identify everybody who wrote the OS.

      With GPL code, each contributor is appended to a (sometimes) long list of copyright holders. With proprietary code, each contributor tends to assign copyright to their parent company thus making the list of copyright owners just one.

    5. Re:What are the Fortune 500 doing? by hyc · · Score: 1

      You obviously haven't paid much attention to license statements in a lot of commercial software. Every large piece of commercial software I've run has been accompanied by docs with a long list of "Portions Copyright xxxx by yyyyy". Even Microsoft Windows uses code copyrighted by the Regents of the University of California, among others.

      --
      -- *My* journal is more interesting than *yours*...
    6. Re:What are the Fortune 500 doing? by Billly+Gates · · Score: 1

      I was just thinking of Wasabi systems when I read the article as it gives them more fud power.

      Wasibi systems makes NetBSD for embedded systems and they also do consulting contracts with embedded system suppliers. I believe Wasabi is a huge contributor to the NetBSD project as well and they pay many kernel hackers to develop and maintain it. They even had their own NetBSD distribution for awhile available for pc's. They wrote the wonderful sushi tool that fetches NetBSD packages that is included with NETBSD by default. Its a cool company actually and they make great software for those who dont want to shell out dough for VXWorks or QNX.

      Of course they are anti-GPL and Pro BSD. Embedded Linux is a threat to their product and the linksys project created a huge headache as NetBSD was alot smaller originally for embedded systems before embedded linux from Linksys came out.

      I dont think they are anti GPL in every situation but for embedded system makers its a big deal to not give out hardware details of your product. Appliances are different from general computers and open access is not as needed. Wasabi is using this to try to sell their consulting services and NetBSD software to makers who are afraid binary drivers linked agaisnt the GPL might cause IP issues.

      Most companies who have not used linux in embedded systems havent done so because they are afraid due to legal reasons or their hardware is not powerfull enough to run any OS. Many use QNX or VXWorks as well and dont want to switch. So Wasibi is trying to cater to these companies.

      They hate MS too since Windows Embedded competes with their products and they have no connection.

    7. Re:What are the Fortune 500 doing? by SilverspurG · · Score: 1

      There's no doubt that the general employees and even middle management align themselves more with the OSS than with Microsoft. At the end of the day, however, the senior executives are playing in the same ballparks as other executives who have made fortunes on the proprietary software charge led empowered by Microsoft's dominance. Everyone knows where the money is and currently it's not in GPL software. If only because the executives haven't figured out how to properly take their cut should they allow it to be financed in the business and consumer realms.

      Strategically it would be very logical for any BSD vs. proprietary software competition to be a dog'n'pony show meant to get in the way of the GPL movement. This isn't in the technology arena. This is in the financing arena. The fact that open source companies were up to $500 million in venture capital this year is a very important step forward and there's no doubt that the major players in the industry take notice.

      --
      fast as fast can be. you'll never catch me.
  13. Did you actually read the article by rminsk · · Score: 1

    "The study indicates that dozens of companies are discovered each year to have violated the terms of GPL, and if they are public companies, they are violating Sarbanes-Oxley" So only if they are violating the GPL they could be in violating of Sarbanes-Oxley. Just using linux does not put you in violation.

  14. Tough choice. by GodHead · · Score: 1

    spend an hour rounding up names and posting some code on a webserver *OR* completly re-write all the OSS code.

    I have to wonder which companies will choose.

    --
    Just wait till some crappy band steals your nic.
  15. Read the article right before submitting! by Spy+der+Mann · · Score: 1, Redundant

    "The study indicates that dozens of companies are discovered each year to have violated the terms of GPL, and if they are public companies, they are violating Sarbanes-Oxley."

    This applies only to GPL VIOLATORS.

    Move along, move along.

  16. Why companies go with commercial distros... by rkhalloran · · Score: 1

    I suppose if they "rolled their own" they might have to spell out where all the components came from, but going with Red Hat, Novell, Mandriva, etc. lets them point a finger over-there for both support and compliance issues.

  17. Publically available information? by bombshelter13 · · Score: 1

    How much should they be required to do if the information in question is already publically available and relatively easy to access? If a company is using Red Hat and wants to know who owns Red Hat and a shareholder wants to know who owns Red Hat it is very easy for the shareholder to find this information on the internet. If they want to know the owner of an individual component piece of open source code, the code's stated owner should be in the comments (the source is available, right?), shouldn't it?

    1. Re:Publically available information? by _Hiro_ · · Score: 1

      Hence why it's only GPL violators who fall afoul of the law.

      Since they're not including source in re-distributed GPL code, the IP ownership isn't being reported properly.

      --
      -Pope Peter Porker, S.O.W., K.M.K.R., U.G.O.A., F.S.G.S.D.
  18. This is not different by Anonymous Coward · · Score: 0
    This is not different from ANY kind of equipment. There are patents used in your chair. In your screwdriver. In your lightbulb. I don't see why software should be special in this regard.

    Oh, and can you provide a list of all patents that are used in MS Windows?

  19. Pure FUD by elfguy · · Score: 1

    This is pure nonsense. Every software program has various parts owned by various companies and individuals unknown to the user. Windows itself has hundreds of parts licensed from various other companies over time that Microsoft paid for and which we have no idea. The difference with Linux is we can look at the source and we know everything, with closed software we cannot. If anything, using open source is the right thing to do here, and using closed software is not possible if you want to comply to this law, so all companies should dump closed software right away.

  20. I knew this was a Microsoft plan!!!! by Tsunayoshi · · Score: 0, Offtopic

    Damn, I wonder if Microsoft backed the SOX act in order to get this very outcome...I mean, if companies are unable to run linux because of IP disclosures, then Microsoft would rule the corporate world, because we all know that the other option, Solaris, is doomed since Sun will dissappear any time now, and Macs are only for fanboyz.

    I knew I should have bought that Microsoft stock....

    --
    "Get a bicycle. You will not regret it, if you live." - Mark Twain, "Taming the Bicycle"
  21. Research by schlichte · · Score: 1

    "published by Wasabi Systems."

    WASABI!!!!!

    1. Re:Research by Anonymous Coward · · Score: 0

      god is it just me or are the 800K's really that unfunny?

  22. Uhm... by Black+Parrot · · Score: 1

    Do companies know who all the IP owners for other operating systems are? And application software? And computer and communications hardware? All this stuff includes components licensed from third (or higher) parties.

    --
    Sheesh, evil *and* a jerk. -- Jade
  23. irrelevant by Anonymous Coward · · Score: 0

    Do you list all the IP holders for your corperate phone system, your company car (lots of SW and computer goodies there), the company who owns the font your yearly statements are printed on?

  24. What a stupid misleading article by molarmass192 · · Score: 1, Insightful

    From TnotFA:

    "But if companies violate the license, the consequences can be more severe than they think. If companies are violating the GPL, they don't have the right to use that software. And if they don't have the right to use the software, they're violating federal law if they claim that they do."

    Well no poop? So they're saying that violating the GPL is like violating an EULA ... wow ... stop the presses!!! The GPL is eeeeeeeevil!!! Morons.

    --

    Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws-Plato
    1. Re:What a stupid misleading article by Lodragandraoidh · · Score: 1

      GPL does not cover USE.

      morons/agreed!

      --

      Lodragan Draoidh
      The more you explain it, the more I don't understand it. - Mark Twain
  25. It's just whining by bas.westerbaan · · Score: 1

    IMHO this is just whining.

    If people eventually really do make a problem about it you could hack your package manager to print out the author, or if not available an url to the website containing author information.

    Although I wonder whether it would be usefull to know all the authors of the linux kernel for instance.

  26. If it is free, then you 'own' it by digitaldc · · Score: 1

    "According to the study, the problem lies with the requirements of the Sarbanes-Oxley Act that companies disclose ownership of intellectual property to their shareholders. The study indicates that dozens of companies are discovered each year to have violated the terms of GPL, and if they are public companies, they are violating Sarbanes-Oxley."

    If you are given something for free, then you own it - do you not? The solution is to have anyone using it say that they are the 'owners,' being respectful to the creators of the software, of course.
    Either that or they need to change the regulations to allow the lawful use of free software.

    On a side note, Sarbanes-Oxley is a huge headache....THANKS ENRON!

    --
    He who knows best knows how little he knows. - Thomas Jefferson
    1. Re:If it is free, then you 'own' it by the+chao+goes+mu · · Score: 1

      Place the blame where it belongs. Thanks Oxley! Thanks (ugh, my senator) Sarbanes!

      --
      Boys from the City. Not yet caught by the Whirlwind of Progress. Feed soda pop to the thirsty pigs.
  27. Article Title Misleading by hattig · · Score: 5, Informative

    Instead of "Might Linux Violate Sarbanes-Oxley?" which it doesn't, it should be "Non-compliance to terms of GPL might violate Sarbanes-Oxley".

    Which makes sense.

    I.e., if you claim to have the right to use Linux for your product, but you aren't complying with the license, you might be violating Sarbanes-Oxley.

  28. Simple by jgardn · · Score: 1

    Even if they are required to do as you say and list the owners of all the software they use, this is easily handled.

    Add a field for ownership on each software package in RPM or DEB format. A good distro that wants to support the corporate environment will go through each package and list the owners in that field, not to mention upstream providers who package their own content. Then run a script on any installed computer to list the owners.

    This will result in thousands and thousands of names and such. But it will satisfy the requirement.

    If the companies are violating the law, then they will be given a warning and given time to comply, just like if they file the wrong forms or if they report something that isn't quite correct.

    --
    The radical sect of Islam would either see you dead or "reverted" to Islam.
  29. Wasabi Systems? by GigsVT · · Score: 2, Insightful

    according to a research published by Wasabi Systems.

    The same Wasabi Systems that sells products based on NetBSD?

    Yeah, no bias there.

    In the past, such violators were merely required to release their code to the public

    The article is also wrong in that it spreads the "forced open source" myth. GPL violators aren't required to release their source code. They FSF generally asks them stop infringing on the copyright of the GPL software.

    One way to do that is to comply with the GPL, another is to stop using GPL software. They don't have to release any code they don't want to.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
    1. Re:Wasabi Systems? by GigsVT · · Score: 1

      Oh I found a choice quote from Wasabi's main site:

      "Wasabi Certified BSD, a certified, tested, and optimized version of the BSD operating system, offers the rich functionality of BSD Unix without Linux's troublesome GPL License."

      Hah, come on now.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
    2. Re:Wasabi Systems? by poot_rootbeer · · Score: 1

      GPL violators aren't required to release their source code

      Being that the GPL is a license, not a contract, I don't see how a party could be forced to release their source code as a consequence of violating the terms of the license.

      Reasonable remedial actions reulting from a violation of the GPL would for the product in violation to be removed from the marketplace to the extent possible (aka "stop profiting off the work you stole from us") and/or damages (aka "pay us all the profits you've made thus far off the work you stole from us").

  30. TFA was talking about GPL violations by Secrity · · Score: 1

    TFA was talking about Sarbanes-Oxley problems that could occur when a company distributes software in violation of the GPL. TFA wasn't talking about companies that use or distribute GPL'ed software in compliance with the license.

  31. GPL Violation == Sarbanes Oxley Violation by panda · · Score: 3, Insightful

    I think a lot of folks here have missed the point. The article's author is making an intellectual exercise in asking out loud and in public if companies that violate the GPL in their software are not also violating Sarbanes-Oxley.

    This is because they are required to list what intellectual property the company owns to shareholders and if it is later found out that the company doesn't really own it, because it is based on a GPL'd software, then is that a Sarbanes-Oxley violation.

    I'd have to say, it looks like one, but I'm no MBA, nor a JD.

    --
    Just be sure to wear the gold uniform when you beam down -- you know what happens when you wear the red one.
    1. Re:GPL Violation == Sarbanes Oxley Violation by DRJlaw · · Score: 3, Informative

      This is because they are required to list what intellectual property the company owns to shareholders and if it is later found out that the company doesn't really own it, because it is based on a GPL'd software, then is that a Sarbanes-Oxley violation.

      Wrong.

      A corporation is required to account for intangible assets that the company owns, and timely and accurately report the acquisition cost, book value, and sale value, if any, in aggregate as part of its normal financial reporting. Refer to SOx sec 302 and FASB statements 141 and 142. SOx requires that existing financial reports be more accurate, not more detailed, in general. Those assets will be reported in categories, as part of particular transactions, or both, but not item by item in most corporate financial reports. IBM does not list the value of the individual patents held in its portfolio in its reports to investors, and I can fairly confidently say that it never will. GPL software is no different in that respect.

      GPL software is different in that it should not even be an issue in most cases because it has no intrinsic acquisition cost, no book value, and no sale value. If a corporation pays for GPL software, they are almost certainly paying for a SERVICE supporting the GPL software, which is an expense, not an asset. Remember all those "You really can make money off GPL software" discussions that have cropped up on Slashdot over the years? This point alone makes the SOx argument almost laughable.

      The issue is not whether a company has violated the GPL, but whether a corporation knows that is has violated the GPL and failed to account for the potential liability, artificially inflating the value of the corporation. This information is not necessarily even going to be public, as it can be lumped into a litigation reserve along with every other potential liability associated with identified assets. Assuming that there is no pending or probable litigation, you are not going to find a corporate report that identifies the separate 'potential liability' associated with, say, products liability suits over Tickle-Me-Elmo dolls as well. It's the same reporting detail issue described above.

      Remember, SOx is about accuracy and certification -- it's requires that corporations display an accurate external appearance, not provide a CAT-scan like view of the entire workings of the business. You are not gaining additional transparency, you are supposedly gaining assurance that the corporation is not lying about the gross and net numbers under the existing reporting style. If there's no accounting irregularity, the software compliance issue is almost meaningless to SOx (although still important to operations).

    2. Re:GPL Violation == Sarbanes Oxley Violation by panda · · Score: 1

      Like I said, I'm no MBA or JD. ;) I was just making assumptions based on what was in that little summary that passed for an article at the main link. Guess, I'm wrong again. :)

      --
      Just be sure to wear the gold uniform when you beam down -- you know what happens when you wear the red one.
  32. I am a SOX IT auditor by kalpol · · Score: 4, Informative

    Rather new at it, it's true, but so far if we find a company has a problem of this sort, it's generally not a very big deal especially if they rectify it before their fiscal year ends. This is just one little piece of the huge SOX pie and often there are other controls in place that mitigate the effect of a finding anyway. Now if the company practiced systemic licensing violations then that's a different matter.

    --
    12:50 - press return.
    1. Re:I am a SOX IT auditor by kalpol · · Score: 1

      I should say, 'systemic licensing violations that affect their financial reporting'. SOX is there just to make sure the financial reports are complete and accurate.

      --
      12:50 - press return.
    2. Re:I am a SOX IT auditor by Celandro · · Score: 1

      IANAL but I like to pretend I am one sometimes despite a lack of any formal education or training or experience in the field....

      Licensing violations are a potential liability that would need to be reported. You can be sued for licensing violations and if a corporation with 1 million computers didn't have any Windows licenses for example, that would be a huge liability that the shareholders should be aware of. Of course you'd be an idiot not to just fix the situation before that you would ever report it, and then you just classify the license purchasing as a one time business expense for new equipment.

      As far as GPL licensing violations go, if your only product was an illegal modification without redistribution of code, that would be a major problem.. Imagine if Microsoft had secretly created Windows off of Linux source instead of BSD.

    3. Re:I am a SOX IT auditor by mattwarden · · Score: 1

      I am a SOX IT auditor

      My condolences.

  33. This is wierd by Anonymous Coward · · Score: 0

    You don't really own software now adays, you just buy a license that lets you use it. Since everyone has the ability to use free software, wouldn't by that same logic mean that they would all have to list it as their IP whether or not they use it? Wow, IP is such a stupid term...

  34. Poor headline by shogarth · · Score: 3, Informative

    Come on people, let's pay attention to the article. Contrary to the poster's headline, nothing in it even hints that using Linux would violate Sarb-Ox. Sarb-Ox is supposed to make investing a bit safer by forcing companies to audit their practices and disclose potential problems.

    If someone is building products on GPL code (like, say broadband router/NAT boxes based on Linux) then they are supposed to disclose that tidbit to their investors. The important part is that they don't own all of the intellectual property for that product and investors should know since that could change the company's value. If they fail to disclose the data, then they have violated Sarb-Ox.

    1. Re:Poor headline by georgewilliamherbert · · Score: 3, Informative

      Right. The source article at http://www.wasabisystems.com/gpl/ is not intended to discourage the use of GPL software; it's a not-so-subtle slam on some of Wasabi's competitors who are using Linux (with the GPL) in embedded systems and possibly not properly disclosing the IP issues to their investors. That might be a SOX violation, yes. But doesn't matter to Joe Linux User on the street. They aren't claiming there's anything wrong at the user end; just at the distributor end, if you improperly distribute modified Linux (or other GPL) products and don't release the source. In this, RMS and the Free Software Foundation agree. Wasabi is correct that their use of a Berkeley license makes their operations safer that way. But it also doesn't make a difference to a Linux-using vendor if the vendor obeys the GPL as the GPL requires...

  35. Huh? by booch · · Score: 2, Interesting

    Does he really think that Microsoft owns all the "intellectual property" in Windows? They sub-license a ton of stuff. For example, IE was based on licensed code from Spyglass. The "About" panel for IE also lists NCSA, UIUC, RSA, Independent JPEG Group, Intel, and Mainsoft. And that's just a single program within the OS. And what about all the submarine patents on the stuff in Windows? How about all the copyrighted stuff in all the malware that's probably running on some of their Windows systems? How about the BSD copyright on the TCP/IP code used by Windows? How are companies expected to find all that information?

    I think the problem may be that the author of TFA hasn't a clue what he's talking about. I suspect that the law says that companies have to disclose what "intellectual property" they own, not what they use. Or perhaps I'm mistaken, and it's Congress that hasn't a clue; that's a distinct possibility. But even then, I'm sure it would follow the spirit of the law to worry about what the company owns, instead of what they use.

    --
    Software sucks. Open Source sucks less.
    1. Re:Huh? by Jerry+Coffin · · Score: 1
      I suspect that the law says that companies have to disclose what "intellectual property" they own, not what they use.

      Sarbanes-Oxley says a lot, but as far as I can see, the law itself doesn't directly talk about intellectual property at all (e.g. a search for "intellectual" turns up no hits at all).

      From reading through it, it looks to me like the basic requirements are 1) if the company in question is claiming part of the company's value is based on intellectual property, they need to report what it is and substantiate their claim, and 2) if they have liabilities, they disclose what they are.

      With GPL software, they could be breaking either (or both) of the two. If they claim to own software that really falls under the GPL, that would probably violate the first part. If they don't report the fact that their violation of the GPL exposes them to liabilities, that would probably violate the second part. Note that the second only involves violation of the GPL, but the first could happen even if the GPL was actually being followed (i.e. they could be distributing source code to users who want it, but still claim in their annual report that what they were distributing belonged to them).

      Keep in mind, however, that the summary I've given above is basically of what look to me like relevant parts of a long (66 pages) law that's mostly amendments to existing laws, so parts are hard to read. Worse, a lot of it directs the creation of a board, and then gives directions about what kinds of rules that board will make and enforce -- but a lot of the details are really in the board rules, not directly in the law itself. IOW, while I've tried to be reasonably accurate, if you're in a position where this matters much to you directly, you certainly do NOT want to take my word on any of this.

      --
      The universe is a figment of its own imagination.
    2. Re:Huh? by booch · · Score: 1

      Thank you for an excellent analysis!

      I still don't think this is any different than commercial software though. If you claim that you own all the IP involved with a computer program, and it has portions licensed from someone else, you're in the same boat. The same with using someone else's code without following their license.

      The GPL really isn't very different than commercial licenses. In fact, in many ways it's actually simpler. Either you follow the terms and may copy/modify/distribute it, or you don't agree to the terms, and you may not copy/modify/distribute it without breaking copyright law. One nice thing about the GPL is it does not restrict anyone's right to use the software, even if they don't agree to the terms.

      --
      Software sucks. Open Source sucks less.
    3. Re:Huh? by Jerry+Coffin · · Score: 1
      I still don't think this is any different than commercial software though.

      In theory it's not. You have various software under various licenses, and you have to follow those licenses and report appropriately.

      From a practical viewpoint, I can see where mistakes may be easier with OSS. To somebody with an accounting mentality, the fact that we spent money developing this (for one example) translates to "it's ours and we control everything about it." If they have (for example) a license agreement from MS that says what they can do with particular code, they have no major problem taking that into account, but that's mostly because they've (usually) been involved in, or are at least aware of, negotations over terms and such. Something like the GPL that may never have made it into their files, and isn't really open to negotation (who'd you negotiate with?) is easier for them to miss.

      F/OSS just doesn't fit their mentality at all though -- for example, if a company takes Linux and tailors it for their market, their derived code to tailor it for that market will typically still fall under GPL.

      Differences in mindset also makes miscommuncation easy. To a coder, ownership mostly implies responsibility. To an accountant, ownership mostly relates to money. When an accountant asks a coder "how much is our code worth", the coder will do his best to answer. A decent project manager (for example) will have a fair idea of what's been spent on development, and a product manager will know about the size of the potential market and such, so between the, they try to give an answer of what the code's worth -- all without thinking or realizing that when it's all GPL, there simply IS no such thing as "our code" at all, at least from the accounting viewpoint.

      --
      The universe is a figment of its own imagination.
  36. Any OS? by mattro · · Score: 2, Insightful

    Have any of you looked at the list of licenses that are included in major packages? In any commercial OS? Pick your favorite app, click Help-About, and many times you'll get a nauseating list of patents, copyrights, and other licenses for technologies that make the app work. If disclosing IP in the apps in an office is required, using OSS isn't going to be any harder to document than trying to find the IP in some commercial product.

  37. No - some Linux *Modifiers* violate Sarbanes-Oxley by ardle · · Score: 1

    The article states - although not in its misleading headline (repeated as a misleading headline for this topic) - that, in short, if a company is violating the GPL it is violating Sarbanes-Oxley and hence committing a federal offence (of course, I don't have any idea what Sarbanes-Oxley is :-). The only bad news I can see in the article is the headline - which is erroneous.

    On a side note, I'm not sure how easy it is to unwittingly violate the GPL these days, so the article is cutting GPL violators quite a bit of slack!

  38. A few lines by RichMan · · Score: 1

    Dull Disclosure of Dependancies:

    We use the following systems under the legal licenses listed.
    We are not aware of any violations of the agreements by the companies and constantly monitor employees to ensure no laws or licenses are violated.

    Pencils - Federal Copyright laws
    Xerox copy machine - Federal Copyright Laws
    Windows XP - Vendore License. Updated monthly, hard copy stored in vault. 3 interns manage the database and 2 lawyers on retainer to review.
    Linux - GPL. 2 pages attached.

  39. Re:Can't violate the GPLv2 if all you do is use Li by GigsVT · · Score: 1

    Modification can also trigger copyright protections. The FSF has said they don't care about modifications that you don't distribute, but legally the GPL does apply to you if you merely modify without distributing, since it is the only license that grants you rights that you would not normally have under copyright law.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  40. Wasabi is a Bad BSD Vendor by puppetluva · · Score: 2, Insightful

    Basically, this is FUD from a BSD vendor who wants to hurt linux and promote BSD by Fudding the GPL.

    Although started by some really bright netBSD folks, they've ejected all of their really bright founding engineers and are resorting to scare-tactics and other garbage like this to try to gain market share.

    Stupid tricks like this hurt free software in general. I hope Wasabi garners enough ill-will from this stunt to hurt their business in a serious way.

  41. Mod this up by Linus+Sixpack · · Score: 1

    I don't see any further exposure or problem. Companies using Linux have the right to use linux just like they have the right to use something they bought. Linux has contributors who have a copyright relationship with distributions of Linux and those who write software based on their work.

    Guess what. Microsoft has contributors who have a copyright relationship with distributions of Windows and those who wrote software based on threir work.

    Considering the terms for Linux are more generous not less and dont affect end users anyway how is this something for companies to worry about? This is a canard!

  42. Technicality! /usr/src/linux/CREDITS by redelm · · Score: 1
    If SOx says to name, then name'em: cat /usr/src/linux/CREDITS >>SOx_report.

    The same can be done for all the system components, although I'd just guess many will simply name RedHat.

  43. A little misunderstanding by Anonymous Coward · · Score: 0

    "Ownership" of IP means exactly that. If I am a company that produces software, I own the IP of that software, GPL or not. If another company uses that software, they don't "own" it, and therefore don't have anything that needs to be disclosed.

    The point is to prevent companies from hiding a potentially valuable but unexploited assets from shareholders - not to give an inventory of every piece of software they bought.

  44. I had to document OSS licenses,it's not impossible by wsanders · · Score: 1

    It is a slanderous urban legend that the license terms for OSS are impossible to enumerate. They are hard to find sometimes, and if you really want to be thorough about it you need to just give up and buy a supported OS.

    But all the licenses you are likely to encounter are listed here:

    http://www.opensource.org/licenses/

    And once you have those the risks with "unlicensed" or "non-GPL" compliant software isn't any greater than any other OS.

    --
    Give a man a fish and you have fed him for today. Teach a man to fish, and he'll say "WHERE'S MY FISH, YOU IDIOT?"
  45. The difference between Linux and Windows. by Anonymous Coward · · Score: 0
    The reason Linux is at risk and Windows isn't is that Windows is so primative that there is no meaningful IP in Windows.

    More seriously - Just because you get Windows from Microsoft doesn't mean that all the IP in Windows is from Microsoft. At least with Linux it would be possible to track down the original sources of the IP.

    If that is indeed required for Sarbanes Oxley, then it would be *Impossible* to comply using Windows because Microsoft'll never tell you where all the IP contained in it came from.

  46. Survey says, "Black Duck" by sweetser · · Score: 1

    There is software to look through all the source code a company claims to own, http://blackducksoftware.com./ I'd rather have software do it than have to look by hand.

    --
    Working on new views of old physics at http://VisualPhysics.org
  47. Great news! by drasfr · · Score: 2, Interesting

    That is a great news...

    Take the example of a random company, let's say... Linksys, a publicaly traded company, owned by Cisco.

    They release an appliance with Linux in it... They don't release the source code. It is GPL. They are in violation of Sarbannes Oxley. It's a big deal if this is discovered, could put them into trouble. It is probably the best way to force a company to comply with the GPL.

    Now it is too bad it only applies to publicaly traded companies...

    1. Re:Great news! by Anonymous Coward · · Score: 0

      Or an even better way to get a company to completely stop using Linux or other GPL infected software...

    2. Re:Great news! by Anonymous Coward · · Score: 0

      Well, if all they are going to do is rip off the GPL programs, why do we want them using GPL tools?

  48. Why not sue the companies that violate the GPL? by level_headed_midwest · · Score: 1

    Why don't the people who wrote the GPLed software sue the companies that are in violation if it for a lot of money? As it is right now, parties use GPL code as their own with about no repercussions, such as First4Internet did in its XCP rootkit. If OSS is even going to be taken as seriously by everybody, the OSS programmers need to sue infringement like Microsoft or SCO do.

    --
    Just "gittin-r-done," day after day.
  49. Re:Can't violate the GPLv2 if all you do is use Li by MntlChaos · · Score: 1

    right, but you only have to provide source code to others who you distribute to.

  50. Applause by Anonymous Coward · · Score: 0

    Thanks, Thanks, Thanks!!!
    Eventually someone figured out, what the article is about. I wonder why there were so many (excuse me, but it is appropriate here) stupid comments were written before. I don't think it is really difficult to figure it out. :)

  51. Re:Can't violate the GPLv2 if all you do is use Li by Krach42 · · Score: 1

    Mere use of Linux by a company cannot ever be a violation of the GPLv2 that Linux is licensed under.

    It can if you violated the GPL, and thus made your license void. That's what TFA is talking about.

    All the comments are wildly confusing, and go figure, the summary sucks, but TFA makes it clear that for a public company violation of the GPL invalidates their license, and makes the issue not just copyright infringement, but a securities violation.

    This wouldn't be any different than saying "by installing one copy of Windows on two separate machines you break your license, and thus it becomes a securities violation."

    --

    I am unamerican, and proud of it!
  52. Re:Can't violate the GPLv2 if all you do is use Li by GigsVT · · Score: 1

    Correct. While you may indeed trigger the GPL with mere modification, it doesn't have many practical implications.... yet at least.

    If GPLv3 includes some stuff about using GPL code in a server-side capacity of a network application, you won't have to comply with any of that stuff unless you modify the app, then you would have to comply with the GPL in those regards even if you weren't distributing the app itself.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  53. Let the SEC do all the work by Dachannien · · Score: 1

    This gives the FSF and other copyright holders who license their work under the GPL an easy way to make claims against offenders. Let the SEC bust a company under Sarbanes-Oxley, and then when they get a conviction or a settlement, swoop in and file a claim against the company citing the criminal case for most of your evidence.

  54. Re:Can't violate the GPLv2 if all you do is use Li by GigsVT · · Score: 1

    The GPL doesn't grant you use rights. You got those if the person that distributed it to you complied with the GPL.

    Even if you violated the GPL, mere use would still be legal. You don't need the GPL to have the right to use the software, only to have the right to modify, copy, or distribute the software.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  55. Missing the bigger picture by davidsyes · · Score: 3, Insightful

    I think a lot of people are missing the bigger picture by not asking the question:

    "WHAT is the main reason and who are the authors behind the SOX wording" about this disclosure requirement.

    It COULD be a specious attempt by lobbyists on the part of their supporters to FORCE the companies using GPL/FLOSS/Linux to disclose themselves so that ms and their henchmen can start targetting the companies that (public or private) are using Linux/free/free software. It has the 'beneficial' effect of causing their competitiveness or chance of success to be diminished or at least perceived as rogue, reckless, uninformed...

    Moreover, it indirectly helps ms by causing the commercial (non- or anti-Linux/GPL/FLOSS) companies/developers to target and entice those companies 'back into' the fold if they have escaped or managed to get one foot out of the field.

    This isn't to say that employees don't talk. Of course employees talk, whether complaining or bragging about their companies. BUT, by forcing companies to list that they are anti-ms or unwilling to be 100% in ms' farm, then the shareholders who WANT to be in ms' fold (for stock/portfolio reasons) just MIGHT call for the necks of the IT managers.

    Just one jaded/cynical/scary thought...

    Anyone else can add to or refine my ideas here...

    --
    Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
    1. Re:Missing the bigger picture by robertjw · · Score: 1

      ...so that ms and their henchmen can start targetting the companies...

      Am I the only one that thinks the idea of Microsoft and henchmen sound funny. Some army of nerds in glasses is going to beat on your door and carry you off into the night.

  56. Re:Can't violate the GPLv2 if all you do is use Li by John+Hasler · · Score: 2, Insightful

    > Modification can also trigger copyright protections.

    That's a nonsensical statement. Copyright protection does not need any triggering.

    > The FSF has said they don't care about modifications that you don't
    > distribute, but legally the GPL does apply to you if you merely
    > modify without distributing, since it is the only license that
    > grants you rights that you would not normally have under copyright
    > law.

    A distinction without a difference. Modifying without distribution does not require anything of you.

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  57. Not using, abusing by xarak · · Score: 3, Insightful

    The study indicates that dozens of companies are discovered each year to have violated the terms of GPL, and if they are public companies, they are violating Sarbanes-Oxley.

    The article said that if you violate the GPL, you violate SOx. This would therefore be A Good Thing (TM) as it would give even more power to the FSF to clear up abuses.

    Misinterpreting articles in this way sends the wrong message to managers, however, who might think they're better off with M$. And no, managers don't read the article.

    IMHO, the same company would be violating SOx as much if they bundled any M$ or other proprietary DLL/EXE/bitmap image into their software without explicitly mentioning it.

    --
    Atheism is a non-prophet organisation
  58. Response to your sig by kadathseeker · · Score: 1

    Well, of course Linux is part of every sunrise. You wouldn't what Windows running something important like that would you?

    --
    The 'Net is a waste of time, and that's exactly what's right about it. - William Gibson
  59. MOD parent UP... by advocate_one · · Score: 1

    just ignore the first sentence... it's daft.

    --
    Donald 'Duck' Dunn: We had a band powerful enough to turn goat piss into gasoline.
  60. Stupid Qestion... by doctorjay · · Score: 1

    I dont know too much about GNU... But who enforces GPL violations?

    1. Re:Stupid Qestion... by swillden · · Score: 1

      I dont know too much about GNU... But who enforces GPL violations?

      The short answer: The copyright owner.

      The longer and more interesting answer: Copyright law says that only the copyright holder has the right to copy, modify or distribute a copyrighted work. Anyone who performs these actions without permission from the copyright holder is breaking the law, and can be sued by the copyright holder.

      The GPL is, quite simply, permission from the copyright holder to copy, modify and/or distribute the copyrighted software, but only if done in a particular way. It grants those permissions to everyone who is willing to follow the rules, and does *not* grant permission to anyone who does not follow the rules.

      In one sense, there's really no such thing as a "GPL violation", because no one is actually required to agree to follow the terms of the GPL. The GPL isn't like a contract that you agree to and then later choose to violate. Rather, the GPL is the only thing standing between someone who distributes GPL software and a copyright infringement suit. As Eben Moglen puts it, what makes the GPL so strong is that when the copyright holder and the alleged infringer go to court, the GPL is the only *defense* the infringer has. The infringer actually needs to argue that the GPL gave him permission to distribute the copyrighted code, because otherwise he has no permission, and is clearly guilty of copyright infringement.

      That makes pretty clear why the GPL hasn't seen much courtroom time: The infringer's attorneys would have to demonstrate that the GPL is somehow invalid, but only a little. They would need to invalidate the GPL's requirements without also trashing the GPL's grant of permission. SCO has tried to argue (in public, not in court) that the GPL is completely invalid and that it should be struck down in its entirety... but that to do so would be an injustice to all those poor developers who want their software to be distributed, so the court's only "reasonable" remedy would be to place all GPL-licensed software in the public domain (except for Linux, which should be given to SCO, since it's mostly theirs anyway). They haven't tried that argument on a real judge. I hope they do... I'd love to watch the judge try to fit his head around that warped argument.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    2. Re:Stupid Qestion... by Vo0k · · Score: 1

      Interesting, how SCO imagines the software would go public domain.
      If the current license on software is somehow invalidated, the fallback case is the "default license" which definitely is NOT public domain, but straight opposite, full copyright, leaving anyone but the author (and possibly FBI etc) without any rights to do anything with given work whatsoever. Only then the authors could re-license their works under some other less restrictive license (like EULA).

      So in most lucky case, SCO would get full rights to the kernel version 1.0 and so 2.6 as a shared-copyright derivative work (containing contributions by many others than SCO) is NOT wholly a property of SCO, no matter how they twist it so they may forbid distribution of it, but they aren't allowed to sell it. (Think illegal fanart, the studio can forbid the author to publish it or even seek compensation but they can't just take and sell/distribute it. Despite being illegal by itself, it's still protected by copyright!)

      And of course after such action, authors relicense their software on new terms: Use freely, like GPL, etc, but you lose all the right to use it if you ever do any business with SCO. SCO is left with the kernel and no userspace software.

      I wonder what kind of idiots works at SCO.

      --
      Anagram("United States of America") == "Dine out, taste a Mac, fries"
  61. Yum yum yum, I love FUD by MoxFulder · · Score: 4, Insightful

    The title of the post is pure FUD, "Some Linux Users Violate Sarbanes-Oxley!!! TFA is only slightly better...

    Why stop at Linux, or free software in general? If a company makes an embedded device that uses a pirated copy of a proprietary RTOS, that would violate the Sarbanes-Oxley law too.

    This seems to me a fundamentally good law (at least this provision): companies must not claim to have rights to use or distribute software, unless they actually do have those rights!

    So why is anyone linking this provision to Linux?????? The only reason is because it's easy to get Linux for free, so incompetent people think they can do whatever they want with it. No one would make the same mistake with Microsoft software, simply because it's wrapped in a menacing 10 page EULA.

    1. Re:Yum yum yum, I love FUD by cHiphead · · Score: 1

      Just imagine if a company makes an embedded device that uses a priated copy of a proprietary RTOS, which in turn stole half its code from GPL software, which in turn was based on BSD code that was stolen from the original Unix now owned by SCOX...

      Cheers.

      --

      This is my sig. There are many like it, but this one is mine.
    2. Re:Yum yum yum, I love FUD by freedom_india · · Score: 1

      SCO: Prepare to be Sued !

      You: LOL ! Yu3 r 0wned

      --
      "Doing what i can, with what i have." ~ Burt Gummer
    3. Re:Yum yum yum, I love FUD by MoxFulder · · Score: 1

      Wasn't there a site called fuckedcompany.com? Sounds like that would be the place for your hypothetical company :-)

      I can't believe these folks are worrying about the legal consequences of miscontruing the Linux license. Just imagine what would happen if they misuse a Microsoft Windows CE license. Hell hath no fury...

    4. Re:Yum yum yum, I love FUD by Maximalist · · Score: 1

      Bingo. SOX should be great for GPL compliance... anybody looking to embed any GPL'ed code is going to think long and hard about whether to release the source or not now.

  62. Nothing to do with Linux, windows, etc. by ZOP · · Score: 1

    *OWNERSHIP* is the term used, not Licensed, not used, IP *Ownership*.

    Microsoft Owns Windows. Not it's licensees.

  63. Fair play? by Anonymous Coward · · Score: 0

    Well, we all pirate their proprietary software... I guess it's only fair to let them have something.

  64. Thats nonsense and/or FUD by spitzak · · Score: 2, Insightful

    Copyright law says nothing about modification. It does not prevent it, and therefore the GPL does not, either. Go ahead and modify all you want.

    1. Re:Thats nonsense and/or FUD by DRJlaw · · Score: 1
      Copyright law says nothing about modification.

      It most certainly does. Modification of a copyrighted work produces a derivative work, and is a presumptive infringement of the owner's rights under 17 U.S.C. sec. 102.

      17 USC Sec. 103 - Subject matter of copyright: Compilations and derivative works

      (a) The subject matter of copyright as specified by section 102 includes compilations and derivative works, but protection for a work employing preexisting material in which copyright subsists does not extend to any part of the work in which such material has been used unlawfully.
    2. Re:Thats nonsense and/or FUD by Anonymous Coward · · Score: 0
      Replying to myself is poor practice, hence the anonymous post, but in view of the grave error in the grandparent post, which suggests that the poster has no knowledge of the owner's rights, I think that my parent post was a bit obtuse...

      The owner's rights are set out in section 106, which provides an exclusive right to produce derivative works:

      17 USC Sec. 106 - Exclusive rights in copyrighted works

      Subject to sections 107 through 121, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:

      (1) to reproduce the copyrighted work in copies or phonorecords;

      (2) to prepare derivative works based upon the copyrighted work;

      (3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;

      (4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly;

      (5) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; and

      (6) in the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission.
    3. Re:Thats nonsense and/or FUD by spitzak · · Score: 1

      Okay, copyright law says nothing about modification without redistribution.

      That paragraph says that you are still in violation of copyright if you distribute a modified version, modifying it is not a way to get around copyright restrictions.

      But a modified copy sitting in your own machine means exactly the same as the unmodified copy in your own machine. It does not violate copyright.

    4. Re:Thats nonsense and/or FUD by DRJlaw · · Score: 1

      17 USC Sec. 106(2). Please review the entire reply chain under your post.

    5. Re:Thats nonsense and/or FUD by Khyber · · Score: 1

      Copyright says nothing about modification? What about the unauthorized modification of artwork that is used on a website for profit?

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  65. I've done the internal IT side of SOX by MrNougat · · Score: 1

    Oh is the IT part of SOX a circle jerk!

    The IT clause is very vague, saying a couple of sentences about "adequate security." No one knew how to interpret SOX anyway, so the Public Company Accounting Overight Board (PCAOB) was created.

    The PCAOB put out some pretty equally vague statements, finally saying (in essence):

    "The company you hire as the external auditor to give you a pass/fail on SOX has the final say on how the law is interpreted. Oh, and if you disagree with anything they want to put upon you, then they can A) fail you, or B) consider you 'difficult.' Or both. In the case of B, they can give you lower marks based on your being difficult - even if you fully comply with everything they've requested, and they may charge you a higher fee for their service."

    SOX ends up being not a protection against the likes of Enron, but a bailout for the remaining auditing firms (since Arthur Andersen got caught and tanked).

    Now, on topic:

    When my former employer was going through SOX compliance, there was never any question or requirement that we disclose IP owners of software we had purchased licenses for. I wholly agree with the previous statements saying, "If you're not complying with the GPL, then you have to disclose, but if you are complying with the GPL, you are licensing." Beyond that, if you're not complying with the GPL, you should get in trouble for that.

    --
    Web 2.0 == Giant Blogspam Circle Jerk
  66. Business as usual by ebvwfbw · · Score: 1
    "disclose ownership of intellectual property to their shareholders."

    This is business as usual and it should be obvious. McDonalds may be violating IP someplace, so could Mercedes or even Barney the TV show. Take the case of a car, how could one enumerate all the possible IP holders or possible violations? They probably mean the IP that the company knows about. This could be a real problem for companies that cross license portfolios like IBM and Lucent.

  67. More incorrect information! Or FUD. by spitzak · · Score: 1

    Yes, if you violated the GPL, your license if void. That is your license to distribute copies! You can still use the GPL software yourself.

    Legally, violating copyright means you are liable for monetary damages, and you may be forced to cease and desist distribution of the violating item. However it says nothing about the original item. If you plaguarize the NY Times, they may sue you. However you are still allowed to read the NY Times.

    1. Re:More incorrect information! Or FUD. by Krach42 · · Score: 1

      Legally, violating copyright means you are liable for monetary damages, and you may be forced to cease and desist distribution of the violating item. However it says nothing about the original item. If you plaguarize the NY Times, they may sue you. However you are still allowed to read the NY Times.

      That's because you don't have a license to copy the NY Times, and you have an implicit permission to read the contents. The NT Times implicitly gives that right to read per edition to everyone who purchases a copy of their edition.

      Software is used/distributed under licenses, and the copyright holder dictates allowed use through such licenses. The GPL is what grants you right to use, right to modify, and right to distribute. If you violate the GPL, and make that license void, then you have no license or right to do anything with the code, even to use it.

      If you disagree, I'd like to know what mythical license you're imagining that grants you right to use appart from the GPL.

      --

      I am unamerican, and proud of it!
    2. Re:More incorrect information! Or FUD. by spitzak · · Score: 1

      You have really bought into the FUD, haven't you.

      You do not need a "license" to use software!

      You need a "license" to copy it because otherwise you are in violation of US and international copyright law. The GPL simply says "hey, I'll let you violate copyright law on my software here if you follow a few rules". If copyright law was repealed, the GPL would be meaningless, since you could copy the software whether or not you adhered to the GPL restrictions.

      There is no law that says you cannot use software without permission, so there is no need for a "license" that says you can violate that law, and it is impossible to legally make you unable to use it unless you sign a binding contract saying you agree not to use it. The GPL (and all those EULA's you click "I agree" on) are not binding contracts.

  68. what IP issues? by the_B0fh · · Score: 0

    What a bunch of crap. So, if you use linux, you can be SOX incompliant because of IP issues. But, if you use Windows, you won't be, even though Microsoft has been proven to have used other people's IP illegally? Because you paid Microsoft $$?! Much as I loathe redhat, I'm sure Redhat will be glad to take your money too.

    REDHAT LINUX - because charging a metric assload for an operating system works so well for Microsoft

  69. Remember kids... by Anonymous Coward · · Score: 0

    There is no such thing as Intellectual Property. It is a completely artifical concept used to mis-apply property laws to information.

    There are no IP owners. There are only copyright holders, trademark holders, and patent holders.

    It is important.

  70. Who ownes the Stolen code in Windows? by Lost+Penguin · · Score: 3, Interesting

    By the same token;
    What IP is in Windows?
    We already know Microsoft has been caught stealing code many times, what is still lurking?
    Without a full source to any OS how can anyone know whose IP they are using?

    --
    I am the unwilling control for my Origin.
    1. Re:Who ownes the Stolen code in Windows? by Phil+John · · Score: 1

      We already know Microsoft has been caught stealing code many times, what is still lurking?

      Um, care to elaborate some on that? As far as I know Microsoft has never been "caugh stealing code". If you mean them using BSD code for the telnet and ftp programmes, well, that's perfectly fine and allowable under the BSD license. The copyright (Regents of the University of California, Berkeley) is still clearly visible if you run strings on the exe, and they probably have acknowledgement of the origin of those apps in the documentation, buried somewhere.

      --
      I am NaN
  71. Wrong, wrong, wrong, wrong, wrong! by spitzak · · Score: 1

    The GPL is a license to violate the copyright on the code, if you follow certain rules. Using the code does not violate copyright, so the GPL cannot prevent it.

    If you plagarize the NY Times, you may get sued, you may not be able to sell your book. But you are still allowed to read the NY Times.

  72. Actually about basing product on it AND violating by Ungrounded+Lightning · · Score: 1

    The synopsis above is misleading. Its is GPL violators, not simply GPL users who are at risk.

    And to clarify further: The issue is about basing a product on GPLed code without disclosing that you are doing so.

    If you do this, get it wrong, and get caught, you have a choice between stopping distribution of the product or releasing the source to its guts (or some fraction of it) to the public (including your competitors and potential customers) for free (as in speech AND beer) reuse.

    This may be perceived as a risk to your business model - and thus is something that must be disclosed to your investors and potential investors if your company is publically traded.

    Maybe it's not a risk. But corporations are required to give enough information to their current and potential investors for them to make their own determination.

    = = = =

    Meanwhile it's NOT an issue AT ALL for companies using Linux on the desktop. or even in internal processes (as long as they don't make changes to its guts that are key to their competitive advantage and then do something that counts as distribution - which is unnecessary if it's just being used as a platform for applications and services).

    Yet the article - even with the clarification - makes it seem this is an issue for desktop and server USERS - and many comments are responding to that bogus threat. Oops!

    The editors should clarify the article further.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  73. Re:Not just Open Source by darkonc · · Score: 1
    If you don't install the latest Microsoft update when Redmond offers it to you (say, because it blows up your financial reporting system), then you are in violation of their EULA, and must clean all your hard disks of their OS. If, at this point, you don't warn your shareholders that your company is running on unlicensed copies of MS Windwos, then you are also in violation of SOx.

    What do you mean, you didn't read your EULA? --- ah, pathetic humans.

    --
    Sometimes boldness is in fashion. Sometimes only the brave will be bold.
  74. laws can be changed by mxronin · · Score: 1

    Even if that were the case, I am certain that the federal courts would see the flaw and change the law as it is obviously outdated.

  75. Counterevangelism by MAXOMENOS · · Score: 1
    Well, let's look at your objections to other OSes one by one:

    1. True, but if you use XP, you get something that looks like a Fisher-Price toy.
    2. I seem to recall that SCO mentioned something about suing the University of California over BSD, too, so the unquantifiable risk of forcable buggery isn't a net minus. Plus, strlcat() and strlcpy() are easy to implement yourself.
    3. You never know when you might need that Apple ][e for a mission-critical application. Also, NetBSD isn't responsible for your friend Bob's house burning down. Your friend Bob voted Republican, and God punished him.
    4. OpenBSD is a very secure OS written by very unpleasant people who think that things like device drivers and state of the art X Windows System configuration utilities are for the hopelessly stupid. The untreatable brain cancers are a feature, not a bug.
    5. Wearing black polo shirts would be a fashion step up for most Slashdot readers.

    In conclusion, FreeBSD isn't as innocuous as you claim. It's not just a real UNIX that failed to catch on like Linux due to some fact of history. No: FreeBSD will give you Hantavirus. In a big, bad way. I'd give you the names of everyone that can confirm my story, but they're all dead because they got Hantavirus. I didn't get Hantavirus because I was running Kubuntu Linux.

    1. Re:Counterevangelism by Hal_Porter · · Score: 1
      http://www.doh.wa.gov/topics/hanta.htm


      What are the symptoms of Hantavirus Pulmonary Syndrome?

      Symptoms usually begin one to three weeks after exposure to infected deer mice. HPS is characterized by fever, chills and muscle aches, followed by the abrupt onset of respiratory distress and shortness of breath. The muscle aches are severe, involving the thighs, hips, back and sometimes the shoulder. Other symptoms include nausea, vomiting, and abdominal pain.


      Well I always feel like that. I figured it was just the cigarettes and bad diet. Which reminds me, bit early for lunch, good job someone's left a few cheetos on my desk, behind the monitor.

      Damnit, some smartass has put cheetos in mouse traps all over the place. Very funny, fratboy.


      Where is hantavirus found and how common is it?

      The deer mouse (Peromyscus maniculatus) is the main carrier of hantavirus in the western United States; however, all wild rodents should be avoided. The deer mouse can carry and shed the virus without showing any signs of being sick. In Washington, about 14% of over 1,100 deer mice tested have been hantavirus positive.


      Hmm, I'll be on the look out for those fuckers.


      What does the deer mouse look like?

      The deer mouse is about six inches long to the tip of its tail. It is grayish to light brown on top, with a white belly, large ears, and a furry tail that is white on the underside. Deer mice live in all parts of Washington, but mainly in rural areas. In comparison, the house mouse (Mus musculus) is grayish to light brown entirely (not white on the belly), with scales showing on its tail.


      The other week, I think I saw a rodent in the server room. It's a good job I put down those traps with poison bait. I guess these deer mice will eat cheetos and rat poison will kill 'em, right?

      Oh shit.
      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  76. Re:Can't violate the GPLv2 if all you do is use Li by Krach42 · · Score: 1

    There exists nothing in current US copyright law to allow private use appart from any license.

    GPL code is generally only distributed under the GPL.

    Being that you violated the GPL, you now no longer have *any* license for that software, and thus have no usage rights.

    If you disagree, I'd like to know what mythical license you're imagining that grants you right to use appart from the GPL.

    --

    I am unamerican, and proud of it!
  77. It's the Penguin! by Bellum+Aeternus · · Score: 1
    I say just attribute it all to 'The Penguin' and be done with it. ^_^

    FBI, CIA, and SEC should have fun looking him up.

    --
    - I voted for Nintendo and against Bush
  78. Re:Can't violate the GPLv2 if all you do is use Li by arkanes · · Score: 1

    This is incorrect - mere "use" is not a right reserved for copyright holders. You don't need a license (implicit or explicit) to read a book, and reading a book cannot (in and of itself) be a copyright violation under any circumstances. Years go people tried to argue that copying to a hard drive (installation) and into RAM (use) were "copies" under copyright law and you therefore can't use software without a license, but thats been untrue since 1977, when "copying essential to use" was explicitly placed under fair use.

  79. errr.... no by smash · · Score: 1
    If they use linux as a desktop OS, then no i don't see any requirement for disclosure of this, as it's not "their IP" as such, it's a commodity OS.

    However, if they use Linux in an embedded device, etc then the IP owners are disclosed anyway, because their names will be listed in the credits/comments of the source, which being GPL has of course been released to the public for anyone to see.

    No issue.

    smash.

    --
    I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
  80. Easy to list, anyway by leonbrooks · · Score: 1

    Most packaging systems list authors. At worst, you'd download the source packages and grep them for email addresses to produce a seriously long list of names (guessing of the order of 100,000 names for a typical distro) upon which the SOX advocates can happily choke.

    --
    Got time? Spend some of it coding or testing
  81. Re:Can't violate the GPLv2 if all you do is use Li by GigsVT · · Score: 1

    Fine, I'll rephrase. Modification is not allowed of work that you do not own the copyright on, in the absence of a license of some sort.

    Use of a lawfully recieved copy is not a protection granted to the copyright holder by copyright law, which is why mere use of GPL programs does not require you to agree or comply with the GPL.

    Modifying without distribution does not require anything of you.

    Under the current GPL, correct. My point is they can and probably will add requirements that are triggered by modification in the absence of distribution in GPLv3.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  82. If you read TFA by endeavour31 · · Score: 1

    It would be apparent that the author, a lawyer, explicitly says that this scenario does not apply to companies who simply use Linux.

    He is warning software vendors who make changes to open source software and might violate the GPL.

    Wasabi targets OEM vendors for sales of platforms and such and from a legal standpoint this paper raises real issues. So everyone stop assuming that this applies to any shop which has a Linux server - it does not.

    Perhaps expectations should be lowered for /.r's. Knee-jerk reactions to a topic header indicates carelessness or cluelessness. There is no third option.

  83. Better Headline: by darkonc · · Score: 1
    "License Violators Could be Breaking Securities Law"

    Some people think that just because someone is being nice to you, you can walk all over them. People who think like that could find them selves in a deeper pile of doo-doo than they expected if they treat GPL software like it was Public doman and try to 'steal' the code by putting it into closed-source products. .. . . .
    (of course, if you were trying to do this with Microsoft software, you would have had BSA people all over you 6 months before this point.)

    --
    Sometimes boldness is in fashion. Sometimes only the brave will be bold.
  84. Re:Can't violate the GPLv2 if all you do is use Li by GigsVT · · Score: 1

    Since you are being pedantic I better clarify:

    [Controlling the] use of a lawfully recieved copy ...

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  85. Re:Can't violate the GPLv2 if all you do is use Li by GigsVT · · Score: 1

    Anything not granted to the owner under copyright law is assumed to be allowed.

    Copyright law does not create a right to control most uses, it only grants a right to exclusive control over distribution, copying and modification, with a few exceptions such as public performance that don't apply here.

    --
    I've had enough abrasive sigs. Kittens are cute and fuzzy.
  86. Hire lawyers by EVil+Lawyer · · Score: 1

    "How are these companies supposed to really list out all the IP owners if they were to install a full desktop or server environment - there could be literally thousands of parties listed!" Easy.... hire lawyers. "What are the current Fortune 500 companies doing, as many of those use Linux in one form or another?" Hiring lawyers.

  87. Re:Can't violate the GPLv2 if all you do is use Li by ajs318 · · Score: 1
    [R]ights that you would not normally have under copyright law
    And that's the important bit. In the days when licence agreements try to pretend they are giving you permission to do things {and, sometimes, withholding permission to do things} that the Law of the Land already says you can do, it's easy to forget this, but: copying a legitimately-acquired program into a computer's RAM for the purpose of running it has already been held to constitute Fair Use. Modification of legitimately-acquired software is also Fair Use {but extraordinarily difficult without source code}. You would only breach copyright by distributing copies {modified or not} to third parties without prior permission.

    It's good that the FSF don't care about you making private modifications so long as you keep them private, because they couldn't stop you anyway, even if they did care. You have a statutory right to do that, so long as you keep your modified version to yourself. Basically, they insist for you to release to everybody under the same terms, or nobody under any terms. What could be fairer than that?
    --
    Je fume. Tu fumes. Nous fûmes!
  88. Boy, its a good thing NetBSD doesn't have this by Billly+Gates · · Score: 1

    After all its not like there are hundreds of kernel and userland developers developing free software for Wasabi's NetBSD OS.

    And its a really good thing no gnu tools like GCC and autoconf are included with NetBSD by default that are actually Gnu.

    So I.T. folks? Stay away from free software and use Wasabi ... oh wait a minute? Hmm

    {yes this post was made in sarcasm to the people who funded the study}

    I feel their own fud probably backfired? Just because NetBSD is free doesn't mean some IP from companies such as Wasabi or google have not made it into the kernel. So yes you could still be screwed for unreporting this to your SOX auditor.

  89. Learn to read by RomulusNR · · Score: 1

    The very first sentence of the article says "companies using Linux for EMBEDDED APPLICATIONS" (caps mine, for those who apparently can't read lower case).

    --
    Terrorists can attack freedom, but only Congress can destroy it.
  90. Interesting thought... by Khyber · · Score: 1

    it looks like this is f/oss trying its hand at the fud game.

    1. Create GPL

    2. Stir up FUD to get more support to it's cause

    3. Profit????

    Disclaimer: I'm just trying to make a parody out of something that popped in my head the second I read the quoted part.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  91. Re:Can't violate the GPLv2 if all you do is use Li by Krach42 · · Score: 1

    Then the entirety of every EULA is wrong, and Microsoft can't stop me from using Windows? Sweet to know, thanks.

    --

    I am unamerican, and proud of it!
  92. Proof this article is pure FUD - Wasabi's agenda by walterbyrd · · Score: 2, Insightful

    The author, who has an obvious agenda, ignores the fact that violating *any* software license (including Wasabi's) can get you into trouble.

    Although you would never know it from the title, the article refers exclusively to people who *violate* the GPL. It's like saying that people who drive cars may face jail terms for DUI.

    Take a look at Wasabi Systems website: "Wasabi Certified BSD, a certified, tested, and optimized version of the BSD operating system, offers the rich functionality of BSD Unix without Linux's troublesome GPL License." In other words Wasabi is a direct competitor with GPL'd software. Right on the front page of Wasabi's web-site they are bashing the GPL. Nothing like an unbiased "study" I always say. I wonder who wrote the article, no mention of that. Hmmm.

    "If companies are violating the GPL, they dont have the right to use that software."

    Is that even acurate? My understand of the GPL is that it does not restrict, only distribution.

  93. Re:Can't violate the GPLv2 if all you do is use Li by arkanes · · Score: 1

    EULAs have a different legal basis, and it's not founded on needing a license to use software. It is, in fact, the ubiquity of EULAs that have contributed to the perception that you do need a license to use software (a perception which is not supported in any way in written law). In fact, I believe, as do many people, that EULAs are on extremely shaky legal ground, and the main thing supporting them and convincing judges to allow them to have legal force is the fact that they've existed so long without serious challenge - we allowed them to become the norm and now, despite the weakness of EULAs, people (including judges) grant them power because "everyone knows" about them. In a recent case where someone argued against an EULA because he wasn't shown it (ever), the judge rejected his argument because he should have assumed there was an EULA and sought it out before installing the software.

  94. Re:Can't violate the GPLv2 if all you do is use Li by Krach42 · · Score: 1

    EULAs have a different legal basis, and it's not founded on needing a license to use software.

    Please, explain if you would. I'm confused. If I don't need an EULA to be granted permission to use the software, then what do I need it for? and how does it have any legal standing at all?

    --

    I am unamerican, and proud of it!
  95. Re:Can't violate the GPLv2 if all you do is use Li by arkanes · · Score: 1
    If I don't need an EULA to be granted permission to use the software, then what do I need it for?

    Because the owner of the copyright won't give you a copy unless you agree to one.

    and how does it have any legal standing at all?

    Because judges have tended to agree that clicking that "I agree" box in the installer is legally equivilent to signing a contract. There are *tons* of very persuasive arguments against it (contracts of adhesion, lack of consideration, and a term I forget about post-conditions on sales), but for some reason those have never proved effective Personally, I think it's a miscarriage of justice.

    Software distributed without an EULA loses none of it's copyright protections (it's just like a book or music CD) and it's perfectly feasible to commercially sell software with only those protections. EULAs are one the nastier little bits of social engineering foisted onto society.

  96. SOX problem for all sw, just like sw patents by SgtChaireBourne · · Score: 1
    It would also appear to apply to all software. Closed source can even be more difficult since it is harder to be sure of what's actually in the packages and who owns it.

    So, any company that runs MS Windows is also in violation of Sarbanes-Oxley, unless they get full disclosure from Microsoft on all the technology Microsoft has licensed or otherwise taken into use.

    Interesting how legitimate questions like the problem of software patents or Sarbanes-Oxley compliance get spun into anti-FOSS FUD.

    --
    Beta is broken and the link to classic doesn't work. Stop wasting our time or there won't be anybody left here.
  97. Re:Can't violate the GPLv2 if all you do is use Li by Krach42 · · Score: 1

    Thanks for th info. It's been by far one of the most learningful experiences I've had on slashdot.

    Now that I understand EULAs, yeah, it's stupid. "Because the owner of the copyright won't give you a copy unless you agree to one." But, I already have the copy, and I already bought it. Yeah, that as a legal arguement doesn't make any sense to me. (I understand it, and how it works now, but it's still f*in stupid.)

    --

    I am unamerican, and proud of it!