decoration decoration
Stories

GROKLAW
When you want to know more...
decoration
For layout only
Home
Archives
Site Map
Search
About Groklaw
Awards
Legal Research
Timelines
ApplevSamsung
ApplevSamsung p.2
ArchiveExplorer
Autozone
Bilski
Cases
Cast: Lawyers
Comes v. MS
Contracts/Documents
Courts
DRM
Gordon v MS
GPL
Grokdoc
HTML How To
IPI v RH
IV v. Google
Legal Docs
Lodsys
MS Litigations
MSvB&N
News Picks
Novell v. MS
Novell-MS Deal
ODF/OOXML
OOXML Appeals
OraclevGoogle
Patents
ProjectMonterey
Psystar
Quote Database
Red Hat v SCO
Salus Book
SCEA v Hotz
SCO Appeals
SCO Bankruptcy
SCO Financials
SCO Overview
SCO v IBM
SCO v Novell
SCO:Soup2Nuts
SCOsource
Sean Daly
Software Patents
Switch to Linux
Transcripts
Unix Books

Gear

Groklaw Gear

Click here to send an email to the editor of this weblog.


You won't find me on Facebook


Donate

Donate Paypal


No Legal Advice

The information on Groklaw is not intended to constitute legal advice. While Mark is a lawyer and he has asked other lawyers and law students to contribute articles, all of these articles are offered to help educate, not to provide specific legal advice. They are not your lawyers.

Here's Groklaw's comments policy.


What's New

STORIES
No new stories

COMMENTS last 48 hrs
No new comments


Sponsors

Hosting:
hosted by ibiblio

On servers donated to ibiblio by AMD.

Webmaster
SCO Wants Us to Buy Their Binary-Only License for $699
Tuesday, August 05 2003 @ 01:51 PM EDT



Um. No. Speaking just for myself, I'd give up computers altogether before I'd hand over one slim dime to SCO. I think I'd prefer to join the DoD and spend $640 dollars for a toilet seat first. Next, I was planning on buying the Brooklyn Bridge. Hey, we all have our priorities.

Here [update: you'll have to get it now from Archive.org] are their thoughts and terms:
The run-time license permits the use of SCO's intellectual property, in binary form only, as contained in Linux distributions. By purchasing a SCO Intellectual Property License, customers avoid infringement of SCO's intellectual property rights in Linux 2.4 and Linux 2.5 kernels. Because the SCO license authorizes run-time use only, customers also comply with the General Public License, under which Linux is distributed. . . .

SCO will be offering an introductory license price of $699 for a single CPU system through October 15th, 2003. Pricing for multiple CPU systems, single CPU add-ons, desktop systems and embedded systems will also be available.

Nope. Guess again. Back to GPL Summer School for you. Take your time. We'll wait.

This is, no doubt, what the teleconference will be about. Until they open up the floor for questions. Then it'll be about Red Hat, I'm thinking.

That $699 is a special introductory offer, by the way, so you probably need to snap them up quick.

Unless you think you might do better with their Going-Out-of-Business sale.

Here's their press release:

*********************

Press Release Source: The SCO Group

SCO Announces Intellectual Property License for Linux
Tuesday August 5, 12:43 pm ET

SCO Provides Commercial Linux Users With Run-Time, Binary License to Run SCO's Intellectual Property in Linux

LINDON, Utah, Aug. 5 /PRNewswire-FirstCall/ -- The SCO Group, Inc. (Nasdaq: SCOX - News), the owner and licensor of the core UNIX® operating system source code, today announced the availability of the SCO Intellectual Property License for Linux®. The run-time license permits the use of SCO's intellectual property, in binary form only, as contained in Linux distributions. By purchasing a SCO Intellectual Property License, customers avoid infringement of SCO's intellectual property rights in Linux 2.4 and Linux 2.5 kernels. Because the SCO license authorizes run-time use only, customers also comply with the General Public License, under which Linux is distributed.

SCO announced in July that it had registered the copyrights to its software releases of UNIX System V and UnixWare® with the U.S. Copyright office and that it would offer licenses to cure the SCO IP infringement issues for Linux operating systems. Beginning this week, SCO will start meeting with commercial Linux customers to present the details of this right to use SCO intellectual property binary licensing program.

"We have identified numerous files of unlicensed UNIX System V code and UNIX System V derivative code in the Linux 2.4 and 2.5 kernels," said Chris Sontag, senior vice president and general manager of SCOsource, the intellectual property licensing division of SCO. "We believe it is necessary for Linux customers to properly license SCO's IP if they are running Linux 2.4 kernel and later versions for commercial purposes. The license insures that customers can continue their use of binary deployments of Linux without violating SCO's intellectual property rights."

Pricing and Availability

SCO will be offering an introductory license price of $699 for a single CPU system through October 15th, 2003. Pricing for multiple CPU systems, single CPU add-ons, desktop systems and embedded systems will also be available. Linux users who are interested in additional information or purchasing an IP License for Linux should contact their local SCO sales representative or call SCO at 1-800-726-8649 or visit our web site at http://www.sco.com/scosource .

About The SCO Group

The SCO Group (Nasdaq: SCOX - News) helps millions of customers in more than 82 countries to grow their businesses with UNIX business solutions. Headquartered in Lindon, Utah, SCO has a worldwide network of more than 11,000 resellers and 4,000 developers. SCO Global Services provides reliable localized support and services to all partners and customers. For more information on SCO products and services visit http://www.sco.com .

SCO and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc., in the U.S. and other countries. UNIX and UnixWare are registered trademarks of The Open Group in the United States and other countries. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

Source: The SCO Group


  


SCO Wants Us to Buy Their Binary-Only License for $699 | 24 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 11:28 AM EDT
I noticed that after the announcement, SCO stock went back up a bit (after the hammering it took yesterday.) I really worry about some of these day traders...

Note that SCO do not specify which Linux distributions and which kernels. This makes the licence meaningless in a legal context, since two Linux kernels could differ massively - for example, one could take the 2.4.20 kernel tarball and tweak it to announce its version as 2.3.1209 ;) But this is intentional, I'm sure, because SCO do not want to alledge infringement against a specific kernel.

I really can't work out how they think this license is compatible with the GPL.. perhaps they are trying to claim the GPL only covers the source code and not the result of its compilation? But even Ms Didio understands the GPL links source and binary intimately.

As an aside: Today I was involved in a pitch for an embedded Linux project. Now of course this is a lower-risk item since most embedded projects don't need any of the code under dispute in the IBM-SCO suit, but I was ready to handle any SCO questions. None arrived; all the customers considered the use of embedded Linux an undoubted plus for this application, and these were not ignorant people. Just a nice sidenote :)


Dr Stupid

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 11:29 AM EDT
SCO has an explanation of the licenses they offer on the ScoSource website. It isn't clear to me when the "Single User Desktop" License suffices or when a Commercial server license is "required". Desktop licenses are at $199 only 4 times as expensive as a distribution.
MathFox

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 11:43 AM EDT
They make it abundantly clear 1. it applies to all Linux 2.4, which by definition must include Red Hat, although it is never explicitly said. 2. Distributors of Linux 2.4, which by definition must include Red Hat (not explicitly said), are infringing in SCO's view ("SCO doesn’t offer a license to cure the infringement on the part of the Linux distributor because SCO’s source license agreement directly conflicts with the GPL.") 3. If you don't pay you might get sued (You have the option to do nothing, adopt a “wait and see” attitude, and hope that SCO is not serious about enforcing its intellectual property rights in the end user community") 4. There is an issue with the GPL ("SCO doesn’t offer a license to cure the infringement on the part of the Linux distributor because SCO’s source license agreement directly conflicts with the GPL.")

http://www.sco.com/scosourc e/description.html This new SCO license is a binary, right to use SCO Intellectual Property in a distribution of Linux. It is applies to commercial uses of a Linux operating system that contains a 2.4 or later version of the kernel

The license does not grant any rights to use SCO IP in source format, nor does it grant any distribution rights. It is therefore inadequate to cure infringements for distributors, or any entity that uses, modifies or distributes Linux source code.

Since the license pertains to SCO IP that the end user already received in the unauthorized Linux distribution, the SCO license doesn’t include a media kit.

Does everyone who uses Linux need a SCO UNIX IP License for Linux? End users running Linux 2.4 or later versions for commercial purposes need a SCO IP license.

I have Linux servers deployed in my organization. What options do I have besides purchasing a SCO IP license? There are 3 options for you to evaluate: • You have the option to do nothing, adopt a “wait and see” attitude, and hope that SCO is not serious about enforcing its intellectual property rights in the end user community

Why doesn’t SCO offer an IP License for Linux to the Linux distribution companies so that they can bundle SCO IP with their Linux distribution? The SCO compliance program is an end-user program for the right to use SCO IP in binary format. The IP License for Linux does not grant distribution rights, nor does it grant any rights associated with source code. SCO doesn’t offer a license to cure the infringement on the part of the Linux distributor because SCO’s source license agreement directly conflicts with the GPL.

Why is SCO charging so much for the right to use SCO IP in Linux when most of the code in the Linux distribution is not SCO IP? SCO has invested hundreds of millions in the development of UNIX and is therefore entitled to a reasonable return on its investment. SCO believes that major portions of the 2.4 and later versions of the Linux kernel are unauthorized derivative works of SCO UNIX IP.


anon

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 11:44 AM EDT
Some of the quotes are from the FAQ page. Sorry I mixed up. It would probably
be good to get some certified copies of these pages in case they change
later.
anon

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 12:11 PM EDT
I listened in on the Aug 5 SCO conference call, and came away with a few observations:

1. No one has yet asked what I think is the obvious question: "I purchased a SCO OpenLinux product, accepted the terms (GPL), is SCO now revoking that license?" Surely there must be *some* paying SCO OpenLinux customers that have this running through their minds. If SCO's answer is "you are covered under this new license" the reply should be "uh uh, I'll stick with the terms of the *first* license I agreed to." 2. SCO is, I think brilliantly, lumping linux users in with the file sharing crowd, and if slashdot comments are any indicator, people are *embracing* this. I'm sorry file leachers - fight your own fight. This community *built* Linux, we have a right to distribute it under our terms, period. 3. SCO is making a big deal about indemnification and who is offering it. Is SCO offering indemnification against *other* companies who may have IP claims to Linux, or just themselves. If, god forbid, SCO wins, aren't they opening the doors to a feeding frenzy where company after company assert ownership of Linux because 50 lines of code ended up in file foo.c? Can SCO reasonably offer indemnification against that? My head is spinning, mostly I'm just outraged that reporters, the people who are supposed to be curious by profession, are pitching boring softballs like "duuuuh, how much is a TWO cpu license?"


Trent

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 12:12 PM EDT
Well if SCO's source license conflicts with the GPL, then SCO themselves cannot distribute the kernel at all - you must either distribute under the GPL, or not distribute at all. Read the GPL. Therefore, SCO are breaking the law by their own admission by continuing to distribute the kernel. Moreover, in some jurisdictions (e.g. the UK) just installing a program constitutes copying. Therefore, SCO's licence is no good to anyone in the UK. Well, I don't know anyone here planning to buy one, so that works out nicely.

No-one is "entitled" to an ROI. I could invest a trillion dollars in a product and it wouldn't give me the right to a red cent in ROI. [If the opinions expressed in several forums are to be believed, SCO's version of UNIX is the worst out there, missing several features that even in Linux.] Moreover, what SCO "believes" is utterly irrelevant to what it is entitled to.

P.S. anon, they don't make it clear from a *legal point of view*. If they referred to particular versions on kernel.org, or "versions that contain SCO IP as set out as follows" that would be another matter. I could take a 2.3 kernel (which SCO have omitted) and patch it up, off my own bat, to effectively 2.4 functionality, yet leave the version number as 2.3. Because they haven't referenced their claim to a particular source tree, they can't say "but you're using 2.4 *really*" To do that, they have to say what they *mean* by 2.4, which ultimately comes down to identifying the code they alledge infringes their copyright - something they don't want to do - or change the licence terms to be "this licence means we won't sue you, even though you may not even be infringing our IP", which puts its extortionate nature into sharp relief.


Dr Stupid

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 12:19 PM EDT
Trent, I think that SCO has said it would hold existing SCO customers harmless,
i.e. those that purchased OpenLinux. With regard to those customers, remember
that they received the kernel under the GPL and no other licence. Moreover, a
GPL licence can only be revoked as a result of the user's actions (read the GPL)
- that is, once I issue something under the GPL I cannot take it back. The
person I supply code to under the GPL can lose his/her rights by violating its
terms, but I cannot withdraw my original release under the GPL. As has been
pointed out, the doctrine of mutual mistake doesn't apply since there is no
contract. Therefore, anyone who received the kernel under the GPL from SCO can
do whatever they like with it that the GPL permits - including sending a copy to
Red Hat, SuSE, Mandrake, Lycoris...
Dr Stupid

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 12:20 PM EDT
Who said: "SCO’s source license agreement directly conflicts with the GPL."

Oh it was SCO, on their web site, in their FAQ. Funny thing, I got the impression they were saying there was no conflict between their license and the GPL on their conference call.


anon

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 12:20 PM EDT
Mathfox, I'm sure the distinction between desktop and server licences is
deliberately obscure to induce people to pay the higher price ;) style="height: 2px; width: 20%; margin-left: 0px; margin-right: auto;">Dr Stupid

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 01:22 PM EDT
There is a new login message on the SCO ftp server:
 NOTICE:  SCO has suspended new sales and distribution of SCO Linux until
 the intellectual property issues surrounding Linux are resolved. SCO will,
 however, continue to support existing SCO Linux and Caldera OpenLinux
 customers consistent with existing contractual obligations. SCO offers at
 no extra charge to its existing Linux customers a SCO UNIX IP license for
 their use of prior SCO or Caldera distributions of Linux in binary
 format.  The license also covers binary use of support updates distributed
 to them by SCO.  This SCO license balances SCO's need to enforce its
 intellectual property rights against the practical needs of existing
 customers in the marketplace.
  
 The Linux rpms available on SCO's ftp site are offered for download to
 existing customers of SCO Linux, Caldera OpenLinux or SCO UnixWare with
 LKP, in order to honor SCO's support obligations to such customers.
It wasn't there on Sunday 03 Aug...

Who mentioned GPL summerschool?


MathFox

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 01:43 PM EDT
What's the betting the kernels on SCO's ftp site still have all previous copyright and GPL notices intact?

Even so, this is far too late for SCO. They could have pulled the kernel from their ftp months ago (and offered, say, to send CDs to existing customers.) Far too little, far too late.


Dr Stupid

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 02:04 PM EDT
No, they can't send CDs either if they contain any kernel code. The only way they could meet their supprt commitments would be to either supply a complete new kernel containing no GPL components under a new license or to rewrite or remove all the bits they claim infringe their IP and release the modified kernel under the GPL.

They cannot distribute something which they claim is a mix of GPL code and their proprietary code in any medium. Anyone who has an OpenLinux license with a current support contract could request them to do this - it would be interesting to see the reaction but as pj always says, ask your lawyer first.


Adam Baker

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 02:16 PM EDT
I am considering making a phonecall to sco.nl tomorrow and ask them what licence is valid for the kernel source I downloaded last week from ftp.sco.com.

*looks at glass of beer* Dutch courage!


MathFox

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 04:38 PM EDT
If SCO alleged that kernel version 2.4 or later are tainted, would it be
possible to narrow down the alleged tainted codes by running a diff between
kernel version 2.3 and 2.4? Would it then be possible to determine if any of
such code has what SCO alleged 'enterprise class'? Would it then be possible to
determine whether the alleged tainted can be removed? or not possible per SCO
claims?
Quan

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 05:12 PM EDT
No that would'nt help. There are backports of 2.4 stuff to 2.2 SCO talks about anuthing from 80 lines to hundreds of files and hundreds of thousand of lines of code, it changes every day.

Main point is that it is up to SCO to identify to us, the alleged infringers, what code is infringing. If I (in good faith) uses property belonging to somebody else, then they cannot charge me for that without identifying what it is and give me the chance to give it back (remove it from the kernel).

Of course they can also send me a bill for the usage of their property, that I can contest.

Magnus.


Magnus Lundin

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 05:37 PM EDT
Magnus,

Even there are backports stuff from 2.4, could they still be identifiable by review the history log? I am not interested in doing the proof for SCO but rather to see if it is possible to satisfy the curiousity.

I am not a programmer. So I was just asking aloud.


Quan

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 05:56 PM EDT
Thinking aloud ! Probably not, their claims are very wide and consists of basically three different parts.

Identical code from their codebase - can be found and removed

Similar code to old SysV Unix - the "common knowlege" that is taught in university classes BUT SCO claims as "obfuscated". This is probably all over the kernel, we basically all had the same education based on the same operating systems priciples as in Unix. And Linux is similar to Unix in many respects. In the sense of ideas and principles for an operating system I would say taht it is a derivative (more precisely a reimplementation) of Unix, but as for the actual code (copyright) it is not a derivative of Unix

Enterprise class stuff - RCU, NUUMA, SMP can be found and removed but we dont think SCO has the rights to this stuff.

So we still need SCO to clarify their claims.


Magnus Lundin

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 06:02 PM EDT
About finding the infringing code. It's a waste of time. f'gedaboudit. Really. SCO's story has shifted so often it's like SCO is a desert, the dunes always moving and shifting. I've seen this posted in a couple of places, and it really resnates with what I've seen of SCO's antics

SCO's whole game plan revolved around never showing any infringing code. 1. sue IBM 2. by spreading a ton of FUD get IBM to settle, never having shown the alleged code (AC from here) 3. use the cash from IBM to go after the Linux distributors. Most of these are poor so many would settle or go under. AC never shown 4. use more FUD to get the remaining distributors to settle, AC never shown.

In the end, SCO gains control of Linux without ever having proven the case, basically by gaming the legal system. And why do it this way? Because there really is very little to the claims. SCO has no case.

Anyway, that's the one explanation that best comports with the available facts. The other stuff (Vultus, execs dumping) is just opportunistic money grabs.

Anyway, About finding the infringing code. f'gedaboudit. Really.

Because aside from the above, Sontag made some statements about SCO going after the BSDs too - find the article by Trevor Marshall in Byte. It's not about protecting legitimate IP rights. It's a premeditated money grab with very tenuous links to reality. (the tenuous links being the AT&T contracts)

Spend your time brainstorming some way to reach people who may be thinking of getting SCO's licenses and convincing them NOT TO DO IT.


Sanjeev

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 06:14 PM EDT
Correct myself

Spend your time brainstorming ....

Should have been "please consider spending your time ......"

I ask myself this question constantly ..... It's frustrating not to have a good answer .... SEE ALSO ....

http://twiki.iwethey.org/twiki/bin/view/Main/SCOvsIBMSCOLicensingJustSayNO

http: //twiki.iwethey.org/twiki/bin/view/Main/SCOvsIBMLawEnforcement

I need to update those, or you can, if you have better (more convincing ) wording, better ideas ....


Sanjeev

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 06:51 PM EDT
> P.S. anon, they don't make it clear from a *legal point of view*.

I am not a lawyer, but would have thought it depends on which legal point of view. If it's from a view of removing an alleged infringement, yes there is not enough detail to do it. If it's from the point of view of Red Hat saying, "look they are after our customers", I would have though it's pretty clear?


quatermass

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 07:27 PM EDT
Help me out here. Isn't SCO violating the IP rights of the independent Linux developers (non SCO contributors) and in effect stealing their code by attempting to distribute the non-SCO code under a non-GPL binary license? The non-SCO code certainly was and still is under GPL which requires distribution use etc. of the source code. Am I missing something here? In laymans terms, it looks to me like SCO is stealing from the open source community.
sn

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 05 2003 @ 08:12 PM EDT
>>> In laymans terms, it looks to me like SCO is stealing from the open source community.

I've been saying this for months, it's the thing that's 2nd most disturbing to me about this affair.

on the LicensingJustSayNO page (link above) , look at the 2nd last entry.


Sanjeev

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Wednesday, August 06 2003 @ 12:22 AM EDT
Yes, I did make the phonecall to SCO.nl (around 09:00 MEST, 07:00 UTC), not that they were very helpfull... It was clear anyway that they had been briefed about the situation and that some procedures were in place to handle licencing inquiries.

They couldn't offer me a quote for the price in Euro's in the Netherlands; the only thing the salesman had to say was that "prices would be in line with the US prices". It could be that they ment they would just bill the dollar amount, anyway the exact price didn't have my priority.

On the question of whether or why I would need a license the only thing SCO had to offer was FUD. I should ask legal advice and check whether the licenses we currently had were good enough. They didn't confirm or deny that they distributed Linux kernels under the GPL. They refused to confirm that I needed a SCO licence. And then the "seek legal advice" came up again.

I forgot to ask them whether their licence would indemnify me against similar IP claims from another company... If some of you would do that for me? I allready decided that I don't buy the SCO licence and I don't feel any need to deal with them.


MathFox

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Wednesday, August 06 2003 @ 03:33 AM EDT
Thanks for doing this MathFox. It's significant, I think, to note that SCO
wouldn't tell you that you needed a licence. It's been pointed out here and
elsewhere that if SCO told people they *must* get a licence and it subsquently
is established this was untrue, they would be in hot water. Whereas, if SCO says
you /may/ need a licence and your company lawyer advises you to buy one, then it
would just be bad advice on the part of your lawyer should it turn out you
didn't need it - at least, that would be their argument.
Dr Stupid

[ Reply to This | # ]

Groklaw © Copyright 2003-2013 Pamela Jones.
All trademarks and copyrights on this page are owned by their respective owners.
Comments are owned by the individual posters.

PJ's articles are licensed under a Creative Commons License. ( Details )