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Three Execs Get Prison Time For Pirating Oracle Firmware & Solaris OS Update (bleepingcomputer.com)

An anonymous reader writes: Three of four TERiX executives were sentenced to prison yesterday for a scheme through which they created three fake companies to pirate Oracle firmware patches and Solaris OS updates. By doing this, the execs avoided paying a per-server fee for every Oracle product their company serviced, instead paying for one patch/update alone.

Court documents show that Oracle was aware of the scheme and eventually connected the dots between the fake companies and TERiX when one of the execs downloaded files from Oracle's servers via one of the fake company's accounts from a TERiX IP address. Oracle filed a complaint with the FBI, but also a civil suit. A judge awarded Oracle damages last year totaling $57.423 million. The judge also barred TERiX from servicing Oracle products.

55 of 119 comments (clear)

  1. Jailtime, another great reason to avoid oracle by Anonymous Coward · · Score: 2, Informative

    Seriously, now I need to go get an insurance policy to pay out if Oracle sticks me with criminal charges? Sounds like this should have been purely a civil matter.

    1. Re:Jailtime, another great reason to avoid oracle by gravewax · · Score: 1

      Probably would have been a civil matter if they were stealing the patches for themselves, Once you start reselling you have well and truly crossed the line into criminal matters.

    2. Re: Jailtime, another great reason to avoid oracle by gravewax · · Score: 1

      even if you are using the software to fix things the author sold with bugs in the first place?

      why would anyone do business with Oracle or any other company with this business model? I would expect no bugs or free patches asap.

      yes Even if. fraud is fraud no matter how immoral the individual/company is you are commiting fraud against. If you think Oracle is the devil (won't argue with that) then DON'T FUCKING DO BUSINESS WITH THEM. It isn't like they make anything that has no alternatives to them.

  2. I'd like to be a fly on the wall in cell block D by JoeyRox · · Score: 5, Funny

    TERiX CEO: So, what are you in for?

    Cellmate: I stabbed my mother to death, then fed her remains to a pack of coyotes that live in my neighborhood. And you?

    TERiX CEO: I gave away firmware and OS software patches without paying the necessary service royalties to Oracle.

  3. Should have just defrauded pensioners by Pinky's+Brain · · Score: 2

    Fake billing old people is a much safer crime.

  4. I mean, they profited off of it. by karmaceutical · · Score: 4, Insightful

    I think there is a difference between profiting off of distributing pirated software, as this was the case, and normal piracy (especially media piracy). I'm not upset with this outcome.

    1. Re: I mean, they profited off of it. by Anonymous Coward · · Score: 1

      Guess you are the typical snowflake who thinks that nobody should be punished for "non violent" crimes.

    2. Re: I mean, they profited off of it. by RealityGone · · Score: 1

      Yes hard prison time for non violent offenders seeking a profit. Clearly you are right here /snark

      Do you think fraud should not be a crime? I mean this case all sounds a bit stupid because Oracle's business model has always been ruthless and focused on selling consultation services after the customer pays through the nose for the licenses. Which is never nice. (I don't like Oracle personally and would never want to use their products. Because of price and because I usually just don't like the software either.) But did the Telerix's clients now have to go spend more money to get legitimate licenses for their servers? After paying a bunch of money to this terrible firm engaged in illegal practices. Oracle sucks but they may not be the only victim here.

    3. Re: I mean, they profited off of it. by Brockmire · · Score: 1

      Whoosh

    4. Re:I mean, they profited off of it. by gravewax · · Score: 1

      really why? these guys weren't just thieves/pirates, they were intentionally taking the goods to sell on fraudulently to others, I would have an ounce of sympathy for them if they were just trying to save some money on their patching. They got everything they deserve.

    5. Re:I mean, they profited off of it. by gravewax · · Score: 1

      It wasn't shared, IT WAS SOLD. no ifs or buts, they would not share it with you unless you paid them. these guys were as big a scumbags as Oracle.

  5. Re: I'd like to be a fly on the wall in cell block by Anonymous Coward · · Score: 1

    Not CEO, just EO - cannon fodder.

  6. Never steal from the Mafia by Anonymous Coward · · Score: 1

    If you steal from the Oracle you get hurt.

    1. Re:Never steal from the Mafia by mdhoover · · Score: 1

      Same (PostgreSQL/PostGIS on T4) though after having to maintain my own libxml IPS package fixing the solaris one
      (missing global symbol for _xmlStructuredErrorHandler on threaded builds using solaris default) for _years_.

      Bug fixed in solaris-userland for over a year (I have been lobbying them to fix it for AGES), but still not in S11 SRU updates :(
      (I often wondered if they left it as a hidden symbol JUST to screw with PostgreSQL builds/installs)

      Regardless, if you are running oracle hardware, you should damn well have a hardware support contract (or you are an idiot), the OS patches and updates come with the deal.

  7. What the *Bleep*? by rsilvergun · · Score: 4, Insightful

    This gets prison time? The entire US Economy was crashed in 2008 by people lying about the value of derivatives and _this_ is what we send people to jail for?

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:What the *Bleep*? by Anonymous Coward · · Score: 1

      Nobody cares if you hurt the poors. What are they gonna do, get *angry*? Oh no, poor people are mad, woe is me. Hell, we've even graduated to killing them in broad daylight and nobody does shit. Neat country, this.

    2. Re:What the *Bleep*? by snookiex · · Score: 1

      As long as you can afford to pay for an expensive enough group of lawyers to make it happen... What is really sad about this is that they could have used some of these $57.423 million to fund an open source project/startup to develop a replacement, but now I guess Larry will be buying another yacht.

      --
      Open Source Network Inventory for the masses! Kuwaiba
    3. Re:What the *Bleep*? by ArchieBunker · · Score: 3, Interesting

      The problem is what people did to fuck up the economy in 2008 wasn't illegal. He who has the gold makes the rules.

      --
      Only the State obtains its revenue by coercion. - Murray Rothbard
    4. Re:What the *Bleep*? by FudRucker · · Score: 4, Informative

      RE:"The problem is what people did to fuck up the economy in 2008 wasn't illegal. He who has the gold makes the rules."

      bill clinton paved the way by repealing the Glass_Steagall act https://en.wikipedia.org/wiki/... bill clinton basically allowed wallstreet investment banks to use people's private money to gamble with, the Glass Steagall act should be restored

      --
      Politics is Treachery, Religion is Brainwashing
    5. Re:What the *Bleep*? by The+Evil+Atheist · · Score: 2

      Clinton? Don't you mean the Republican congress?

      --
      Those who do not learn from commit history are doomed to regress it.
    6. Re:What the *Bleep*? by OrangeTide · · Score: 1

      Corporations are people. Money is free speech. And they are free to contribute to municipal, state and federal elections. I can only wonder how many direct attorneys received generous contributions from companies like Oracle.

      --
      “Common sense is not so common.” — Voltaire
    7. Re:What the *Bleep*? by FudRucker · · Score: 1

      yup, exactly, they are all complicit and guilty of it

      --
      Politics is Treachery, Religion is Brainwashing
    8. Re:What the *Bleep*? by Uberbah · · Score: 2

      was it passed with sufficient votes to make it veto-proof?

      Not relevant for a number of reasons:

      1) What a president signs, a president owns. See George H. W. Bush and "read my lips".

      2) The vote may have barely passed or even lost without the president whipping support for it

      3) Going back to #1, if a president vetos a bill and Congress overrides, then that's 100% on Congress.

    9. Re:What the *Bleep*? by wierd_w · · Score: 2

      Do I need to pull out the youtube video were he waxes philosophical about how we don't need it anymore, or what?

      Oh fuck, here it is anyway. But go right on blaming the repub congress for this.

      https://www.youtube.com/watch?...

    10. Re:What the *Bleep*? by The+Evil+Atheist · · Score: 1

      Why didn't the Republican congress stop it then?

      --
      Those who do not learn from commit history are doomed to regress it.
    11. Re:What the *Bleep*? by Uberbah · · Score: 2

      It passed the senate 90 to 8.

      Still not relevant for the same reason's I'll copy and paste since you ignored each of them:

      1) What a president signs, a president owns. See George H. W. Bush and "read my lips".

      2) The vote may have barely passed or even lost without the president whipping support for it

      3) Going back to #1, if a president vetos a bill and Congress overrides, then that's 100% on Congress.

      Who owns Taft-Hartley? Republicans, because they overrode Truman's veto.

    12. Re:What the *Bleep*? by wierd_w · · Score: 2

      Because they wanted it too. (Honestly-- do people really not understand that money grubbing corruption is not an exclusive to republicans?)

    13. Re: What the *Bleep*? by phantomfive · · Score: 1

      Oracle is one of those companies that will make me smile when they die. In fact I will help stab. Et tu phantom? Oh hell yes. I won't twist the knife.

      --
      "First they came for the slanderers and i said nothing."
    14. Re:What the *Bleep*? by The+Evil+Atheist · · Score: 1

      Then why did you only blame Clinton? Clinton was one democrat.

      --
      Those who do not learn from commit history are doomed to regress it.
  8. Re:I'd like to be a fly on the wall in cell block by dgatwood · · Score: 3, Funny

    TERiX CEO: So, what are you in for?

    Cellmate: I stabbed my mother to death, then fed her remains to a pack of coyotes that live in my neighborhood. And you?

    TERiX CEO: I gave away firmware and OS software patches without paying the necessary service royalties to Oracle.

    Cellmate: Man, and I thought I was evil.

    FTFY.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  9. Re:I'd like to be a fly on the wall in cell block by Joe_Dragon · · Score: 1

    only if you do money laundering you go that place. In the other one more like

    I ripped off A bunch of old people with my phone scam

  10. If you cannot afford by jmccue · · Score: 2

    If you cannot afford to pay for Oracle firmware, say to them "I have n customers on Oracle, how about I get these patches for free or I will go to SQLServer, DB/2, postfix, mariadb etc...". And just work the deal

    1. Re:If you cannot afford by K.+S.+Kyosuke · · Score: 1

      Are you sure? These payments for the right to eat poop tend to be pretty large.

      --
      Ezekiel 23:20
    2. Re:If you cannot afford by StormReaver · · Score: 3, Insightful

      And just work the deal

      Or even better, do what we did: Tell Oracle to fuck off, and move everything to PostgreSQL.

    3. Re:If you cannot afford by gravewax · · Score: 2

      To be fair these guys were downloading them and then reselling them, they were not just patching their servers for free. They are as big a shitbags as ORacle themselves

  11. Re:Kiss my ass Oracle. by haruchai · · Score: 2

    Yet one more reason why I won't do business with Oracle. These updates and firmware use to be free, now they're throwing people in prison because they got free updates that fixed Oracle's shitty products. Screw HPE too... Dell still offers free unencumbered firmware updates.

    Cisco pulls the same shit; no active maintenance contract on the hardware or software means no updates / fixes for you.

    --
    Pain is merely failure leaving the body
  12. Amazingly bad publicity? by Anonymous Coward · · Score: 2, Funny

    Hmm..

    When I was eight-year-old, we lived in a large hut made of uncooked brick, seven siblings of us plus our father, our mother, an aunt and three cousins.
    One week-end our dad set up a rogue Windows Update server to proxy our updates on the LAN, WSUS something, but without paying for the Windows Server 2003 or 2008 license. The next couple of weeks allowed us actual Windows XP security while saving a lot of Internet bandwith among our computers. It was great. We celebrated with a tournament of 4-player MS Hearts, which had become a little goofy ritual after our dad introduced us to 10BaseT networking.

    Two weeks after, five or six warlords equipped with machetes and AKs made irruption and massacred every single member of my family, as I was hiding behind a couch.
    The amount of blood was so breathtaking. I never thought blood would pool that way, even LAN battles and co-op with Glquake and Winquake didn't prepare me, and the mud floor was vainly trying to soak it.
    You can only imagine how life-changing and horrifying this event was. But life is life. It taught me many a lesson. But no matter the hardship, you gotta follow software licenses and copyright law to the letter. I am glad in a way my family was executed, even if I suffered obviously a decade of squalor.

    1. Re: Amazingly bad publicity? by kenh · · Score: 1

      Your littlr story is cute, but has nothing to do with the crime comitted.

      The company in question took Sun/Oracle updates that require customers to pay Sun/Oracle for and SOLD them to hundreds of clients as if they were selling legal copies bought from Sun/oracle.

      Kinda like walking into a record store and buying records pressed while-you-wait from bootlegs.

      I can't wait to hear what Oracle does to all the company's clients without support contracts.

      --
      Ken
    2. Re: Amazingly bad publicity? by Billly+Gates · · Score: 1

      Your littlr story is cute, but has nothing to do with the crime comitted.

      The company in question took Sun/Oracle updates that require customers to pay Sun/Oracle for and SOLD them to hundreds of clients as if they were selling legal copies bought from Sun/oracle.

      Kinda like walking into a record store and buying records pressed while-you-wait from bootlegs.

      I can't wait to hear what Oracle does to all the company's clients without support contracts.

      Quite easy. Send their lawyers over with scary threatening letters of injunctions to shutdown all the illegal Oracle Servers ... unless of course they sign a contract with no discount of course plus a legal fee surcharge for having to pay the lawyers to threaten you.

  13. Oracle is more evil than MS by Billly+Gates · · Score: 2

    I have been saying this for a few years now ever since the Java lawsuit against Google that no one is a bigger threat to innovation, FOSS, and software development freedom than Oracle.

    Their products suck, buggy, ultra expensive, and require contracts which are leased rather than rented with SAAS with all sorts of stipulations.

    MS on the other hand is moving in the other direction but still have a ways to go. Windows being free for non commercial use is one example and unlike Oracle their products are at least improving. Oracle is going the other way around and throwing people in jail who want a bug fix.

    The most outdated shit requiring insecure IE and ancient versions of Windows on desktops is all because of fucking Oracle because they charge an arm and a leg to upgrade so Java6 (last employer) is still being used with customer financial data all because Oracle wants to charge too much money to upgrade that the cost accountants won't pay. .... end rant

  14. Re:Stupid move for Oracle by Billly+Gates · · Score: 2

    That will just further alienate Oracle's customers and hasten the demise of Solaris and SPARC

    Come on. This is Oracle we are talking about. Like MS before them their customers are on lockin with P-SQL specific code and financial stuff they can't get rid of. Why bother to be nice?

  15. A lot of it was by rsilvergun · · Score: 1

    you can't lie about investments. There was tons of shady crap going on to hide the fact that those derivatives were made up of worthless loans to people who were bound to default. Most of the really bad loans were to house flippers and the like who had no incentive to keep the properties since they didn't live in them.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  16. Bill Clinton was a Republican by rsilvergun · · Score: 1

    who ran as a Democrat. He moved the Democratic party hard right so he could forge an alliance of economically right wing social librals and so he could get that sweet sweet Wallstreet money. The worst thing is that when he moved the Dems to the right the Rs had to follow suit in order to maintain their identity. That's how we got crazy shit like the Tea Partiers (well that and a ton of money from the Koch Bros.)

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  17. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  18. That's what you get ... by Qbertino · · Score: 1

    ... for skimping out on paying a little upfront for an independent IT consultant and some scripting jobs on a Linux/Postgres setup.

    Bottom line: Steer clear of Oracle. There is nothing Oracle can do that countless Foss stops can't do better and way cheaper.

    --
    We suffer more in our imagination than in reality. - Seneca
    1. Re:That's what you get ... by angel'o'sphere · · Score: 1

      The Oracle DB running on (now) Oracle hardware, is the fastest DB on the planet, by orders of 1 or 2 magnitudes over any F/OSS DB.
      Only other old behemoths like DB2 or sybase come close to it.

      I guess you are only comparing mini DBs running on a PC.

      --
      Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
  19. Re:Kiss my ass Oracle. by swb · · Score: 1

    I keep thinking that eventually security patching will be a legal requirement, but I can't quite decide whether it will go so far as to require vendors to make security patches available for free.

    I'm sure companies would howl and try to block such a requirement, but there may be counter-arguments that say you can't compel people to install patches that they can't afford, either, so any requirement to be patched probably would coincide with some level of free security patch access.

    It's obvious that fees for patches are just cheap ways to push up profits, especially firmware patches (I'd argue 1/3 or more of all hardware reaches retirement with as-shipped firmware).

    Non-security bug fixes are more compelling as fee-for-service, although only in as much as vendors play games with version numbering and features, blurring the line between fixing what they sold you that doesn't work and adding a feature you didn't pay for up front.

  20. Dum basses by Ol+Olsoc · · Score: 1

    Look - you just can't do this kind of crap without greasing the palms of the necessary politicians.

    --
    The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
  21. why not to use Oracle by NynexNinja · · Score: 1

    This is a good case of why not to use Oracle, use MySQL or Postgres

    1. Re:why not to use Oracle by pi_rules · · Score: 1

      If you want to stay away from Oracle MySQL is a bad choice. They own it.

      MariaDB on the other hand...

  22. Re:I'd like to be a fly on the wall in cell block by mysidia · · Score: 1

    Cellmate 2: I ran youtube-dl to download the latest Britney Spears song
      and shared it with my friends.

  23. Re:I'd like to be a fly on the wall in cell block by hjf · · Score: 1

    Bri-?..man you're old

  24. Re:I'd like to be a fly on the wall in cell block by mysidia · · Score: 1

    What if it was "Justin Bieber song " or "Taylor Swift song?"

  25. Re: Jailtime, another great reason to avoid orac by Brockmire · · Score: 1

    Your parents fucked up raising you. You are really fucking dumb if you think stealing only means a single, physical possession. Clearly, you don't have any ideas worth stealing nor have lived in the real world.

  26. Re: Why are they not catching them Chinese? by Brockmire · · Score: 1

    Sounds like the cast of a porno.