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SCO update

SCO and IBM had a new day in court on February 6, when a hearing was held to determine whether SCO had complied with IBM's motion to compel discovery. IBM's position is that SCO has failed to comply. As of this writing, the judge has not made a ruling. The preliminary indications from the transcript of the hearing (available on Groklaw, of course) do not bode well for SCO, however.

IBM noted in court that SCO is no longer alleging any sort of disclosure of trade secrets on IBM's part. SCO did provide a small number of files and line numbers of Linux code which, it says, violates IBM's contract with SCO. These files were in the expected parts of the kernel: the read-copy-update code, the JFS filesystem, etc. In every case, the code in question was indisputably written by IBM, and is owned by IBM. Some of it is even patented by IBM.

In other words, as we have noted in the past, SCO has been pushed back to one of its original claims: that it has the right to control the disclosure of any code which has ever breathed the same air as SYSV Unix. IBM sees this, of course, and isn't making it easy. From the hearing:

The notion is, Your Honor, that somehow IBM is prohibited from disclosing that code because in some way it is derived from Unix System Five. What we asked for in our responses is that they tell us, if that is the theory, exactly where it is in Unix System Five that the code derives from.

The point, of course, is that code independently written by IBM does not derive from SYSV Unix at all. This point has been fairly clear to people who have been paying attention for some time. For the rest (i.e. SCO and the bulk of the news media), IBM has to work to get the idea across.

SCO has also requested permission to amend its complaint against IBM yet again. If this change is allowed, it will modify the case in some interesting ways. Much noise has been made in the wider media about the addition (finally) of a copyright infringement charge. This charge says nothing about IBM's contributions to Linux, however; instead, SCO claims infringement because IBM continues to distribute AIX despite having had its license "terminated" by SCO. Unless SCO can convince a court that IBM has breached its contracts with SCO, this charge will evaporate.

The charges of export violations have been fleshed out. It seems that SCO has concluded that IBM's contracts never gave it the right to distribute Unix code in India. Since Linux is clearly available in India, SCO concludes that its contract has been breached yet again.

Perhaps most amusing is the new claim of "interference with contract." Those who have been following this case will recall that Novell has made some interesting claims, including (1) that it still owns the Unix copyrights, and (2) that it has the right to keep SCO from terminating Unix licenses. SCO, it seems, sees the shadowy hand of IBM behind Novell's actions, and is now charging IBM with causing Novell to act the way it has. Novell's own interest in the success of Linux seemingly does not enter into this picture.

Finally, as noted above, the latest version of the complaint deletes the charge of "misappropriation of trade secrets" which had appeared in earlier versions.

Novell, meanwhile, has sent a new letter to SCO in an (undoubtedly IBM-directed) attempt to clarify its view of the "derived works" argument. Novell has dug up some old communications from AT&T regarding its interpretation of the Unix licenses and some changes the company made to make that interpretation more explicit:

AT&T then followed up by adding to section 2.01 a sentence clarifying that AT&T "claims no ownership interest in any portion of such a modification or derivative work that is not part of a SOFTWARE PRODUCT." Even more clearly, the August 1985 edition of $ echo explained that this "sentence was added to assure licensees that AT&T will claim no ownership in the software that they developed -- only the portion of the software developed by AT&T."

SCO's view of derived works never did seem likely to stand up in Court, but Novell has thrown up yet another obstacle in SCO's path. Novell also pulls out its "override clause" from the asset purchase agreement:

Accordingly, pursuant to Section 4.16(b) of the Asset Purchase Agreement, Novell hereby directs SCO to waive any purported right SCO may claim to require Sequent (or IBM as its successor) to treat Sequent Code as subject to the confidentiality obligations or use restrictions of Sequent's SVRX license.

Novell directs SCO to take these actions by noon, MDT, February 11, 2004, and to notify Novell that it has done so by that time.

That deadline has passed as of this writing. One assumes that SCO did not comply.

Novell has also filed a motion to dismiss SCO's "slander of title" suit against it, and another motion to move the case (in case it is not dismissed) to federal court.

For those who are curious about the Red Hat (Delaware) case: it remains on hold until the judge gets around to ruling on SCO's motion to dismiss the suit. The wheels of American justice never move particularly quickly, but Delaware seems to be especially slow.

The Open Source Development Labs has published another paper on SCO by Eben Moglen; it is available in PDF format. This one is about the Novell suit:

Even if one is unsympathetic to SCO, one can't help but feel sorry for the quandary its lawyers faced in deciding whether to sue Novell. Had they not done so, their client's ultimate fate would have been sealed. But suing Novell destroys SCO's licensing campaign for the present just as fully.

Finally, Don Marti has noted that the Canopy Group has removed all mention of SCO from its web site and appears to be generally backing away from SCO. Perhaps Canopy, too, sees the end of the game on the horizon.


to post comments

SCO update down under..

Posted Feb 12, 2004 3:54 UTC (Thu) by csamuel (✭ supporter ✭, #2624) [Link] (1 responses)

SCO-ANZ is likely to be on the receiving end of legal action in Australia too.

Leon Brooks of CyberKnights in Perth has taken the fight to them, threatening SCO-ANZ with fraud charges unless they publically retract their comments.

More at the CyberNights web page about the letter and also at The Age Newspaper.

It would appear that the date on Leon's letter is wrong as Saturday is the 14th, not 13th.

SCO update down under..

Posted Feb 18, 2004 20:09 UTC (Wed) by crouchet (guest, #1084) [Link]

The root of this mess seems to be a belief on the part of SCO that they had nothing to lose so there was no reason not to persue a longshot. Nevermind the chaos and damage they caused for legitimate businesses.

In that context I think it is important that the SCO officials face some sort of penalty for their actions. The demise of SCO is not sufficient here precisely because it was SCO's imminent demise that emboldened them to commit their fraud.

There are some circumstances under which the officers, not just the company, can be subject to penalties for the company's actions. I think fraud can be one of those circumstances. I hope that will apply here, not because I dislike SCO or want revenge but because I would like to see a clear message sent that if company officials engage in illegal/actionable activity because they have "nothing left to lose" they will find themselves held personally accountable.

SCO update

Posted Feb 12, 2004 16:09 UTC (Thu) by alphajim (guest, #9856) [Link]

Actually canopy re-did their site and no longer mentions any of their "prefered partners" which include Troll Tech

SCO update

Posted Feb 12, 2004 16:36 UTC (Thu) by bjn (guest, #2179) [Link]

That deadline has passed as of this writing. One assumes that SCO did not comply.

They didn't... and so Novell did what they said they would, they did it for them. Big grin: http:// www.groklaw.net/article.php?story=20040212043026687

"Undoubtably IBM-directed"?

Posted Feb 13, 2004 13:40 UTC (Fri) by chloe_zen (guest, #8258) [Link] (1 responses)

These works seem a bit strong for speculation.

"Undoubtably IBM-directed"?

Posted Feb 13, 2004 15:37 UTC (Fri) by Max.Hyre (subscriber, #1054) [Link]

You seem to have overlooked the <sarcasm></sarcasm> tags :-).

Waiving SCO's rights on SCO's behalf

Posted Feb 14, 2004 19:32 UTC (Sat) by giraffedata (guest, #1954) [Link]

I'm extremely perplexed by this contract clause that says Novell can waive (or assign) all of SCO's rights in Unix whenever it feels like it. I've never heard of this kind of "sale." What was the intent? It sounds to me like it just says Novell continues to own the code even after the sale. So what exactly did SCO get for its money?


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