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GPL Price-Fixing Lawsuit Dismissed

ansak writes "The case of Wallace vs. the Free Software Foundation has been dismissed. It wasn't entirely on the merits of the case. From PJ's analysis, 'despite the judge clearly telling him where his previous complaint was lacking, he didn't fix it.... In this case, he had five tries.' Nevertheless, the judge did make a strong statement that the GPL 'encourages, rather than discourages, free competition' and ordered Wallace to pay court costs: 'Judges do that when they'd like you to learn a good lesson. It's a signal you shouldn't have brought the case in the first place.'"

34 of 154 comments (clear)

  1. How much do "court costs" usually run? by Enigma_Man · · Score: 2, Interesting

    Just curious if anybody has any knowledge of the average court-cost payment?

    -Jesse
    --
    Nothing says "unprofessional job" like wrinkles in your duct tape.
    1. Re:How much do "court costs" usually run? by Anonymous Coward · · Score: 2, Informative

      Depends, most expensive I've seen was about a million, though the cheapest you can get is merely a photograph of a slightly compromising position. Depends on the judge really.

    2. Re:How much do "court costs" usually run? by networkBoy · · Score: 2, Informative

      Depends on the length of the trial.
      Since I pled guilty and my trial (traffic) lasted ~10 min and my court costs were $340 or so here are some assumptions:
      $340 total traffic court costs (the fine was an additional $600 BTW)
      -$100 filing fee
      -$100 bogus crap not charged per hour
      =$140/hr for court costs.
      Figure if he had 5 tries as TFS said to get it right and each try was half a day of mucking about in the courtroom:
      20hrs * 140 = $2800 (+ the filing fees and such).

      Since I'm talking out my ass on this one I'm going to figure I'm way off.
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    3. Re:How much do "court costs" usually run? by SomeoneGotMyNick · · Score: 2, Funny

      Don't worry about accuracy. Your breakdown was probably more accurate than a Slashdot Poll

    4. Re:How much do "court costs" usually run? by Ibix · · Score: 4, Informative

      Courtesy of a post on Groklaw, court costs don't include attorney fees (although they can be imposed, too). Another post in the Groklaw thread suggested a figure of about $2k (for the FSF's costs...), but PJ said probably lower. I understand Wallace has similar cases pending against RedHat, Novell, and IBM. He probably has similar chances of success. It's going to add up if he pushes...

      I

    5. Re:How much do "court costs" usually run? by friedo · · Score: 2, Informative

      People aren't found guilty in civil cases, nor do they go to prison if they lose.

    6. Re:How much do "court costs" usually run? by networkBoy · · Score: 2, Insightful

      Bingo, and in my case I got the fine portion reduced by almost a grand.
      I specifically said:

      "Guilty with an apology, your honor". The judge looked at me with the funniest expression I have ever seen and asked me why I said that. My response was simple and honest: I did what I did, and it was wrong. I would have never done it had I any inkling that it was going to cost me so much. You bet I'm sorry. She cut the fine down from $1550 to $600 + court costs.
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
  2. I love irony by hey! · · Score: 3, Interesting

    Honestly, pro se lawsuits tend to be disasters. If you can't find a lawyer willing to represent you, it usually means you don't have a case. Quoth TFA.

    I didn't know what the term pro se in TFA meant, so I went to answers.com, which helpfully corrected my "misspelling":

    Prose
    Ordinary language people use in speaking or writing...

    I guess that lawsuits based on ordinary language would be a disaster. By the way, "pro se" apparently refers to self-representation, the proverbial provence of lawyers with fools for customers.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    1. Re:I love irony by Snorpus · · Score: 3, Informative
      More or less: pro se = "for yourself".

    2. Re:I love irony by slavemowgli · · Score: 4, Informative

      "pro se" means "for himself" - in other words, he's arguing for himself, rather than having a lawyer argue for him.

      --
      quidquid latine dictum sit altum videtur.
    3. Re:I love irony by rewinn · · Score: 3, Interesting

      >I guess that lawsuits based on ordinary language would be a disaster

      ...for much the same reason that software written in natural language can have difficulties.

      Documents that describe how something should work out and the reasons for it, whether in the legal or the engineering realms, necessarily require technical jargon and precise structure, if they are to have predictable results. The legal "programming language suffers the grave disadvantage of having been crafted over centuries by thousands of people. Some of them were dickering in court, who were often interested in dealing with their particular case, and others were working in legislatures, who are often interested in something else entirely. The result is a language with the clarity of Assembler and the efficiency of COBOL.

      All this effort, and the results may still not be substantively just, but after all engineers too can have difficulty making clear specs conform to what the customer wants. What can ya do?

      P.S. your "pro se/prose" observation was delightful!

    4. Re:I love irony by h4rr4r · · Score: 2, Interesting

      It literally means "for himself" it is a latin phrase, and as latin is a dead language you cannot change the definition with the times,even if it may offend some people.

    5. Re:I love irony by Beowabbit · · Score: 4, Informative

      No, it means "for himself, herself, itself, or oneself. In Latin, the reflexive pronoun "se" does not vary for gender, so it's every bit as accurate to translate it as "for herself" as "for himself". Completely off-topic, but the language geek in me couldnt let it go. :-)

    6. Re:I love irony by Deagol · · Score: 2
      Honestly, pro se lawsuits tend to be disasters. If you can't find a lawyer willing to represent you, it usually means you don't have a case.

      Funny. I always thought that pro se was a good option for people who felt that justice shouldn't have an obscene cover charge. At least for those with the skills to represent themselves well.

      Gotta love our justice system: by the lawyers, for the lawyers.

    7. Re:I love irony by Main+Gauche · · Score: 3, Insightful

      "The law is only hard to understand because lawyers and paralegals puff themselves up by using legalisms like pro se when writing for a lay audience. PJ could have just written, "Lawsuits where the plaintff represents himself." "

      Perhaps irony is when someone makes a post on Slashdot decrying the use of jargon. :-/

      (But I do agree with you, anyway.)

    8. Re:I love irony by h4rr4r · · Score: 2, Informative

      The point I was making is I am an idiot sometimes. Actually it is just that recently i have seen alot bad translation from latin to english for the sake of PCness and this time I jumped the gun. This means do not post on ./ while busy at work.

  3. Time for Fox News to... by Bug-Y2K · · Score: 2, Funny

    Bring on the talking heads to rile about "Activist Judges Out Of Control!"

    1. Re:Time for Fox News to... by Pharmboy · · Score: 4, Insightful

      Bring on the talking heads to rile about "Activist Judges Out Of Control!"

      Not Applicable. In this case, the judge certainly didn't behave as an Activist for either party. In spite of all the rumors and misinterpretations on both slashdot and groklaw, the judge said "A dismissal is appropriate only if the plaintiff can establish no set of facts", and dismissed accordingly. Facts had nothing to do with it, and the judge didn't consider any facts in his dismissal.

      The judge made no actual ruling in the case, except to dismiss it. People are saying that the judge "upheld the GNU/GPL" but actually it never went on trial. The opinion that "The GPL encourages, rather than discourages, free competition and the distribution of computer operating systems, the benefits of which directly pass to consumers....." is not a ruling, it is an opinion that is no more than a side comment and not a precident. The dismissal was not based on this opinion, but rather on Mr. Wallace's inability to articulate a claim.

      "For the reasons stated above, the court finds that Mr. Wallace has failed to allege an antitrust injury such that his claim under Section 1 of the Sherman Act may move forward. The court therefore GRANTS the Reasserted Motion to Dismiss (Docket No. 34), filed December 29, 2005. Mr. Wallace is DENIED leave to further amend his complaint."

      It would appear that the GPL didn't "win", but rather, Mr. Wallace failed. Nothing was decided except the fact that Mr. Wallace had a bad lawyer: himself. What you find in this that would smack of "Activism" by the judge, I have no idea.

      --
      Tequila: It's not just for breakfast anymore!
  4. Re:Poor Wallace... by 'nother+poster · · Score: 2, Informative

    No worry mate. Grommit will simply build him another rocket so he can go to the moon for all of that free cheese. This time they'll take a cheese grater so that they can make "snow".

  5. I love it! A crackpot fine! by dildo · · Score: 4, Funny

    I wish I could fine every crackpot that's wasted my time.

    "Dear Sir. Your letter claiming the invention of a (perpetual motion machine/ proof of the trisection of the angle with compass and straight edge/ stock-picking program/ time cube harvester) was a complete waste of my time due to its impossibility and utter implausibility, as demonstrated by (reputable mathematics/ laws of thermodynamics/ support of your theory by George Gilder or Wired magazine, implying that it is categorically false).

    "By my estimation, it required 2 minutes of my time to read your letter and throw it in the shredder and one minute to send out this form letter invoice. At my going rate of $100 per hour, this means you owe me exactly $5 U.S., payable by check, gold bullion, or paypal. Failure to pay this sum will result in a call from my attorney. Sincerely,"

    I bet I could make a plush living on commissions if I were to handle the crank mail at a place like MIT or CalTech.

    1. Re:I love it! A crackpot fine! by generic-man · · Score: 4, Funny

      http://www.thesmokinggun.com/archive/0306061billy1 .html

      The footnote on Page 2 is the price of the ticket.

      --
      For more information, click here.
  6. Ruling Is On The Money by EzInKy · · Score: 4, Insightful

    Excerpt:

    "First, while Mr. Wallace contends that the GPL is "foreclosing competition in the market for computer operating systems" (id.), his problem appears to be that GPL generates too much competition, free of charge. The court's understanding from the GPL itself2 is that it is a software licensing agreement through which the GNU/Linux operating system may be licensed and distributed to individual users so long as those users "cause any work that [they] distribute or publish, that in whole or in part contains or is derived from the Program or any part thereof, to be licensed as a whole at no charge to all third parties under the terms of this License." (GPL 3.) The GPL purportedly functions to "guarantee [users'] freedom to share and change free software." (GPL Preamble.) As alleged, the GPL in no way forecloses other operating systems from entering the market. Instead, it merely acts as a means by which certain software may be copied, modified and redistributed without violating the software's copyright protection. As such, the GPL encourages, rather than discourages, free competition and the distribution of computer operating systems, the benefits of which directly pass to consumers. These benefits include lower prices, better access and more innovation."

    This Judge Tinder is an amazingly astute jurist. He just summed up what people have been trying to explain to the anti-GPL crowd for ages now.

    --
    Time is what keeps everything from happening all at once.
    1. Re:Ruling Is On The Money by swillden · · Score: 2, Insightful

      If Microsoft and IBM had gotten together and agreed to give away OS/2 and Windows, Apple would have sued them.

      If Microsoft and IBM had given away OS/2 and Windows in a manner that guaranteed the OSes would always be free, Apple would lose that lawsuit.

      The purpose of anti-trust law isn't to preserve competition in order to benefit competitors, it's to preserve competition in order to benefit consumers. "Dumping", selling below cost, is generally anti-competitive because its effect is to drive out competitors, after which the dumpers will raise prices in the market they now control. The effect of such dumping on consumers is positive in the short term, but very negative in the long term.

      Free Software is clearly much different from such dumping or price-fixing, because the software will always remain Free (and free). Consumers benefit both short-term and long-term.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  7. Re:the system by AlterTick · · Score: 3, Informative
    Parenthetically, double jeopardy only applies when a mistrial is declared at which point the prosecution may or may not try to try again.

    No, "double jeopardy" is when one is subjected to a second prosecution for the same offense after acquittal or conviction (which is generally unconstitutional). A mistrial ends the trial before an acquittal or conviction, so a retrial after a mistrial is not double jeopardy, it's just a retrial.

    --
    Conclusion: the Empire squashes the Federation like a bug. Accept it.
  8. Re:WallaceOS by schon · · Score: 4, Informative

    What was the WallaceOS

    It was basically FreeBSD with all of the non-BSD licensed software removed, and no source.

    So no X, no gcc, etc.

    No, I'm not kidding.

  9. yes, this is the important thing by H4x0r+Jim+Duggan · · Score: 2, Informative

    Before this case, the GPL was taken to court twice, and it was upheld twice. Something about MySQL in the USA, and another case in Germany.

    One of the goals of the GPLv3 consultation process is to identify enforcement issues in all the legal regions of the world. Yet another win in court doesn't give us anything to fix, but it's good to know that Stallman's written a solid licence - GPLv3 should be GPLv2 but better.

  10. Only cost that matters.... by MarkGriz · · Score: 2, Informative

    [T]he GPL encourages, rather than discourages, free competition and the distribution of computer operating systems, the benefits of which directly pass to consumers. These benefits include lower prices, better access and more innovation

    Having your case dismissed while simultaneously strengthening the GPL.... priceless.

    --
    Beauty is in the eye of the beerholder.
  11. Re:the system by Kjella · · Score: 2, Interesting

    No, "double jeopardy" is when one is subjected to a second prosecution for the same offense after acquittal or conviction (which is generally unconstitutional).

    Umm no. You can appeal your conviction in the US system, but the prosecution can not appeal an aquittal. So you can have a "second prosecution" after conviction.

    Many countries in Europe don't consider let both sides appeal a ruling, moving to higher courts. That is why DVD-Jon was aquitted twice. Those uninformed enough to think US law applies abroad were talking about double jeopardy.

    Once the court case is finally settled (as in out of appeal options) I don't know of any country that lets you be trialed again.

    I guess it's a difference of opinion, in the US the idea is that "If one court can find a shred of reasonable doubt, there is", in Europe it is "The higher the court, the higher the competence and the higher the accuracy."

    Let me take a simple example, say the threshold was 90% (just to pick a number). US Courts: 92+/-2, 91+/-2, 89+/-2, any one aquittal is enough. Europe: 89+/-3, 91+/-1, 91.2+/-0.2.

    Personally I think the US lets you off way too cheaply if you're guilty and manage to sucker the court somehow. Pull it off once and you're home free.

    --
    Live today, because you never know what tomorrow brings
  12. Re:the system by hacksoncode · · Score: 2, Insightful
    Wow... Someone thinks that a 90% probability of guilt is sufficient to convict someone... I hope I never move to his country. Generally speaking in wild generalities, the US system sets that threshold at about 99% (based not on any law, but on a cultural opinion framed by a quote from a famous patriot that he would rather let 100 guilty men go free than falsely convict an innocent one).

    Also, appeals in the US (and I would hope probably most places) only consider matters of law, not of fact. Trying the facts becomes more and more suspicious as time elapses, as memories fade and trails of custody of evidence become more and more fractured and prone to error. So the presumption is that reasonable doubt can only increase with time, not decrease.

    Anyway, the point of the double jeopardy rule in the US is a reaction to a visciously unjust (European) government tactic of the time of simply trying someone over and over again if they don't like the result of the first trial. Since our particular form of justice puts supremacy on the jury rather than on appointed judges, any trial after the jury aquits would be a trial of this form. It's not a perfect system, but it's one (agan, imperfect) check and balance on the power of government to unjustly harrass an innocent that the government doesn't like for some reason.

    Not that we're really living up to those ideals these days... but I have a moderate amount of confidence in the long-term stability of the system even if it has the ability to royally screw up in the short term.

  13. Re:WallaceOS by mav[LAG] · · Score: 2, Funny

    What was the WallaceOS that he claimed he was unable to market due to the market abuse of the Linux-conglomerate?

    Full of great - if slightly whacky - ideas that look promising but it almost always needs the GromitOS to get it out of trouble.

    --
    --- Hot Shot City is particularly good.
  14. Re:Reading comprehension, man. by EzInKy · · Score: 2, Insightful

    No point is being missed. The ruling correctly states the GPL fosters, not hinders, competition and innovation contrary to the claim of the plaintiff. Microsoft and IBM can not possibly use it to freeze out other operating systems because nothing in the GPL prohibits other operating systems from being created.

    --
    Time is what keeps everything from happening all at once.
  15. Re:Reading comprehension, man. by Crispy+Critters · · Score: 2, Insightful
    "Let's say the two largest OS makers in the market are Microsoft and IBM. If Microsoft and IBM collude to fix the price of their operating systems in order to freeze out competition, that is price-fixing and it is illegal."

    There are several points that make Linux under the GPL different.

    First, the GPL sets a maximum price. This is different from setting a price. If two competitors agree to set a price, this is considered to be always anticompetitive. Setting a maximum price is different.

    Second, the GPL is by its nature a vertical agreement (between producer and distributer) rather than a horizontal agreement (between producers or between distributers). The rules are different. Horizontal pricing agreements of any sort are pretty much illegal, however certain vertical pricing agreements must be proven to reduce consumer choice or increase consumer prices.

    Wallace argued that the GPL was the kind of price fixing agreement that is per se illegal; in other words, the agreement is by its nature illegal because it can be assumed to have a deleterious effect on consumers. He was wrong. This left him having to prove that the GPL hurts consumers, which he cannot because it doesn't. Instead, he argued that he as a competitor was hurt; unfortunately for him, antitrust law protects competition, not competitors.

  16. agree in part, disagree in part by Xtifr · · Score: 2, Interesting

    It's true that this is not the grand vindication of the GPL that some may have hoped for. Nevertheless, it is (slightly) more vindication than you suggest. To file claims under the Sherman Act, one must show both personal harm and harm to the market. The judge ruled that Mr. Wallace had shown sufficient personal harm to defeat a motion to dismiss (simply by alleging that his ability to market his own OS had been harmed--the burden of proof is all on the defense in motion to dismiss). but failed to show harm to the market because the GPL is not anti-competitive. He "failed to allege an antitrust injury" because (and only because) the GPL is not anti-competitive. The GPL did win!

    The judge wrote: "the Fourth Amended Complaint does not adequately set forth an injury to competition as a whole." The Fourth Amended Complaint (and all three previous) included the full text of the GPL. The fact that the plain text of the GPL "does not adequately set forth an injury to competition as a whole" is a victory for the GPL, albeit a small and unsurprising one. You say, 'The opinion that "The GPL encourages, rather than discourages, free competition [...]" is not a ruling," when, in fact, it was the basis for the ruling that the plaintiff's case was without merit.

    In any case, this does end the "GPL has never been challenged" FUD. The GPL has been challenged (however badly or ineffectually). Even if the case em>had been dismissed for reasons completely unrelated to the GPL, it would still be true that the GPL has been challenged in court now. That is indisputable. The FUDsters have lost a valuable sound-bite. Even if the actual terms of the dismissal don't mean much, that is still one positive result of this nonsense.

  17. Re:Reading comprehension, man. by mdfst13 · · Score: 2, Informative

    "First, the GPL sets a maximum price."

    No it doesn't. I could offer to sell a copy of Fedora for a billion dollars if I wanted. Nothing the copyright holder(s) could do about it under the GPL, even if I found someone stupid enough to pay me. Even if I don't modify it at all.

    You may be thinking of the source code clause, which says that once I have distributed the binary, I must offer the source code for no more than a reasonable cost of delivery of media. However, that clause doesn't affect binary cost at all. I could still sell the binary for a billion dollars; it's just that once I've sold the binary, I'd have to sell the source code for something more like $2. Of course, if I just ship the source *with* the binary (or deliver just the source), that clause goes out the window.