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
If We Send You an Invoice, Then Will You Pay Us?
Monday, August 11 2003 @ 02:58 AM EDT

Now SCO says it will send out invoices to the 1500 companies that got the earlier warning from them, and maybe you too, in the next weeks or months. What? You mean you aren't in a hurry to stand before a judge? Expected response from one and all: yawn. Here's the article:
SCO Group Inc is preparing to invoice customers running or developing with Linux, while broadening its copyright net to include manufacturers of embedded systems. . . .

Invoices will be dispatched in the "next weeks or months" a company spokesperson confirmed.

Those being billed will include 1,500 end-users who were earlier this year informed by SCO in writing they should seek legal advice as running Linux violated the company's copyright. Customers running Linux who were not on SCO's original mailing list will also be targeted."

Chris Sontag says you end user pirates better not wait for the legal case to be over, or you'll have to "face the consequences":
"SCO has the right to defend its copyright all the way down to the end user," said Sontag. "If necessary we will start picking end users to enforce our rights." Sontag warned that SCO had no qualms about enforcing its claimed rights anywhere in the world - including the UK.
And if that doesn't work, then they'll huff and they'll puff and they'll blow your house down.

With FUD galore.



Update: Speaking of FUD, SCO released a press release about an unnamed licensee:

The SCO Group Announces Signing of Intellectual Property Compliance License for SCO UNIX Rights
Fortune 500 Licensee Acquires SCO UNIX License for Concurrent Run-Time Use of Linux

LINDON, Utah, Aug 11, 2003 -- The SCO® Group (SCO)(Nasdaq: SCOX) today announced the signing of its first Intellectual Property Compliance License for SCO UNIX® Rights. This announcement comes less than a week after the commencement of the SCO IP License for Linux program. Terms of the deal and the Fortune 500 company name were not disclosed based on confidentiality provisions of the agreement, but a license was purchased for each of the Linux servers running their business.

"We've had more than 300 companies in the first four business days of this program contact SCO to inquire about SCO's Intellectual Property License for Linux," said Chris Sontag, senior vice president and general manager, SCOsource, SCO's software licensing division. "This Fortune 500 company recognizes the importance of paying for SCO's intellectual property that is found in Linux and can now run Linux in their environment under a legitimate license from SCO. We anticipate this being the first of many licensees that will properly compensate SCO for our intellectual property. After having initiated the program last week, we are very pleased with the licensing interest to date."

For more information on the SCO Intellectual Property License for Linux, contact SCO by calling (800) 726-8649 or visit the SCO Web site at http://www.sco.com/scosource/linuxlicense.html.


  


If We Send You an Invoice, Then Will You Pay Us? | 25 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 12:21 AM EDT
First I’d like to thank PJ for creating Groklaw and giving us a great source of information on the SCOLinux drama. I’ve been keeping up with this since SCO decided to take on the world. I’ve come up with a theory that may sound far fetched, but you never know. Reality can sometimes be weirder than fiction. Besides, I don’t think IBM would invest $1+ billion on something with an unproven license that could cause problems in the future. Please read on.

Here’s my theory. I think SCO is an IBMNovell pawn and they don’t even know it. Think about this, IBM and Novell each have great products and of a somewhat compatible nature. I’ll explain this later. Also, they both have something in common. They’ve been dethroned by Microsoft in one way or another in the past. They want to be on top again, but they realize they can’t accomplish this as individuals. So IBM and Novell decide to collaborate. What they need is an operating system robust and cheap enough to really have a starting point. Linux was their answer. Ok, what does each company have to offer? Novell has experience with the client/server environment (Netware), UNIX patents and experience, a recently acquired desktop environment company (Ximian), and I’m sure a whole lot more. IBM has hardware(servers, mainframes, PCs, etc..), a bunch of patents for UNIX technology, manpower, global reach, UNIX experience, and they’ve been around to block and have their tricks. Together these two make a nice couple. :-)

A drama in the form of a legal battle is just what the doctor ordered. Every drama has a protagonist and an antagonist. We all know who the protagonists this drama are (IBM, Redhat, etc..), but who’s going to be the antagonist. That job belongs to SCO who bought the “rights” to Unix from Novell and is part of the Canopy Group. The Canopy Group was founded by an ex Novell CEO (remember this). Ok, here’s the juicy part. IBM and Novell write the script for their drama.

It goes like this, Novell: I have Unix and that kid, Linus, from Finland has created linux which is free. It’s loosely based on Unix, has a nice GUI, and a growing developer community. Why don’t we team up and use linux to counter M$? IBM: Sounds good, But we need to get linux more legal credibility under the GPL, more non-geek exposure, and have its community involved in the process. We need a drama. This drama has to strengthen the GPL and it will be relatively cheap publicity. Let’s create a company and give them limited rights to Unix. Then set the stage so this company has to sue me. When they do, you (Novell) have to bail me out. Ok? Now who’s going to create our antagonist? Novell: I will. I’m not as popular as you and will get less attention. I think it’s better this way. IBM: Fine, sounds good to me. There has to be several degrees of separation between you (Novell) and this company for this to work. Novell: I’ll (Novell CEO at the time) leave my company and start a new one. Then I’ll use this new company to create our nemesis. Nobody will be able to trace them back to us. IBM: I like this plan. We’ll have to stagger our efforts in order to stay inconspicuous. Our pawn must not know our plans, ok? Novell: Ok. Now, how are they going to sue you? IBM: I’ll license Unix from them and you’ll reserve the right to overrule them if necessary. Then I’ll start a project (Monterey) with this company, dump what I’ve developed into linux, and make sure they distribute this beefed up version of linux under the GPL. The CEO for this company must not be smart enough to figure this out until it’s too late. When they do, they’ll sue me and start pointing out all of the weaknesses in the linux business model. We’ll let them rant and rave so the hole they dig for themselves will swallow them completely. This will be our opportunity to prove the validity of the GPL, unite the linux community, and get some free publicity. What do you think? Novell: Sounds good to me. You guys are really good. I’ll start immediately since this will probably take about 10 years to stage. We’ll be heroes and everyone will love us.

Novell will provide the backend apps (Netware, Active Directory, the Gnome Desktop Environment, and Mono – the linux equivalent to Microsoft’s .Net) and IBM will provide hardware (servers, mainframes, PCs, etc..), their arsenal of patents for UNIX technology, manpower, global reach, and UNIX experience. Nice couple, huh? I like linux and I know it will prevail. Even if this is true, it wouldn’t bother me at all. But I just think the recent events are just too convenient for the GOOD guys to be a mere coincidence.

That’s my 2 cents. Enjoy!!!

Leonel Santana


Leonel Santana

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 01:03 AM EDT
Let's concentrate on the juridical aspects on the case and refrain from posting complot theories. The current juridical cases provide us with enough discussion.

If I would receive an invoice from SCO, that would be a reason to see a lawyer and discuss starting the criminal procedures for a count of "oplichting". (I think it's called defrauding in English, but I'm away from my dictionary.) I have no intention to pay SCO a dime.


MathFox

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 01:23 AM EDT
I'd love an invoice. They're bound to become a collectors item in a few years!

BTW I use Knoppix and other linux bootable rescue CD's on clients PCs. Would I need a special license - since every PC & CPU(s) I use becomes a potential Linux box? (for a little while anyway) :-)


monkymind

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 03:24 AM EDT
As a holder of several Caldera - now SCO Group - Free Unix licenses - which BTW I got because I wanted to try out Unix on a bochs virtual machine on my Linux box - I would be extremely amused to receive an invoice from SCO, considering they got around to organizing a way for me to pay them and thus receive the cdroms, without breaking the bank.

And I would be extremely interested in their explanations as to why I was eligible for an invoice for a "Free" license. I can only think that NZ criminal courts would also be very, very interested in such a question, too.


Wesley Parish

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 03:27 AM EDT
Oops, corrigendum:

"...considering that they ... without breaking the bank." should read "...considering that they never got around to organizing a way for me to pay them and thus receive the cdroms, ..."

I'm not made of money, and I hoped they would be prepared to make provision for that - only they never did, they never got back to me, and now this stupidity has flared up.


Wesley Parish

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 03:44 AM EDT
I sure hope those who get those invoices quietly file them away, not destroying them.

Those invoices will be great pieces of evidence for the goverments of the world to bring charges of fraud, extortion, racketeering, etc. etc. against SCO.

It seems that Daryl McBridge, as someone else pointed out, is destined to become someone's bride in the slammer after all. =)


MajorLeePissed

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 04:12 AM EDT
MajorLee, I suggest a few changes in your first sentence:

I sure hope those who get those invoices file them at the Police Station and not destroy them.

There's no need to be quiet about the case, SCO sends out press releases before having thought about their content. Yes, monkeymind, I consider the loss of this Ebay sale a worthy contribution to the Open Source movement!


MathFox

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 06:33 AM EDT
SCO-scum's stated intention to send invoices over "the next few weeks or months"
is as limp a threat on end users as I have ever read from them. RIIA, whom they
model themselves on, would never have waited weeks or months to send their
threats. In the meantime, SCO-scum's proprietary UNIX product line is in
violation of IBM patents and if they are distributing Linux, they are doing so
in violation of the terms of the GPL. If I were SCO-scum's banks, I would be
calling in the loans just about now - while they still have the cash from M$ and
the Sun.
blacklight

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 06:53 AM EDT
I thought it was a still a crime in most countries to send out false invoices.
Since SCO has already effectively granted all downstream users the right to use
Linux kernel under the GPL, any additional charge is an unnecessary expense. style="height: 2px; width: 20%; margin-left: 0px; margin-right: auto;">David
Mohring

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 10:04 AM EDT
This is really funny. What if instead of hiring attorneys to sue those who don't buy a license, SCO makes careful records of their attempts to contact the putative "licensees" and then they sell the receivables to some collection agency which specializes in buying bad debt? At that point they don't have to pay lawyers and they have money in the bank.

All the sound and fury isn't intended to raise the stock price. It's to convince some rich dumbass to buy the receivables at a ninety percent discount without doing the appropriate due diligence. Then SCO drops the lawsuit, keeps quiet for a little while, and goes after a new group of Linux adopters after a year or so. Finally, they sell the next set of receivables to another fool.

"It's the perfect plan," said Darl.

"I love it," replied Chris, "let's celebrate with an evil laugh!"

"BWAHAHAHAHAHAHAH!!!"

The funny thing about all this is that I first thought of this idea about a week ago and here they are sending out invoices. I'd claim to be psychic, but I'm afraid it simply comes out considering just how corrupt and venal a guy like McBride might be...


Alex Roston

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 10:24 AM EDT
I was wondering

- if they do send out invoices,

- and if some of the whoever receives them doesn't pay,

- then would SCO want count the balances on these invoices as part of Accounts Receivable or Revenue?


quatermass

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 10:48 AM EDT
> would SCO want count the balances on these invoices as part of Accounts Receivable or Revenue?

An excellent question. They don't have to report financials again for 3 months, but reporting those invoices as "revenue" in the next 10-Q is yet another way for these guys to go to jail. Not even Arthur Andersen would have signed off on -that-.


Bob

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 10:52 AM EDT
Wouldn't this be a CLEARCUT case of mail and wire fraud?

Alex, "I love it," replied Chris, "let's celebrate with an evil laugh!" "BWAHAHAHAHAHAHAH!!!"

Actually the BWAHAAAAAA is the uncontrollable, blurt-out-laugh reaction,

the laugh you're looking for is "MUUAAAHAHA - HA - AHAHHAHAHAHA" (the MU and the - occasional interrupt gives it the traditional "evil laugh" imprimatur.


Sanjeev

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 11:30 AM EDT
It seems to me that any company or person that receives an invoice from SCO
should be filing a complaint with the FTC. With all the controversy with SCO's
claims of ownership and it's rights to license Linux. It seems that as soon as
they send out actual invoices that they are opening themselves up for
investigation by the FTC over whether or not they are actually selling
something more that protection.
Just my 2 cents
-Mike
Mike BMW

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 12:16 PM EDT
I found an old article on silicon.com announcing Calder'a purchase of SCO's server products and services. ("Caldera buys SCO for $145m", Aug 2, 2000, by Joey Gardiner) My comments are offset by "> ".

"Caldera is paying for the deal with 17.54 million shares, $7m in cash and a loan of $18m to SCO from Caldera investor Canopy.

"Tony Lock, senior analyst for Bloor Research, said Caldera had made the purchase to exploit SCO's distribution channels. 'Caldera will also be able to exploit SCO's current customers, and use the credibility they have as a well respected Unix vendor.'"

> Respect? Credibility? Well, they got the "exploit" part right.

"Clive Longbottom, analyst for Strategy Partners, said the deal represented the end for SCO. He added: 'Caldera have removed a fly in their ointment by buying a rival OS vendor, and will use the Monterey technology to gain influence with IBM.'"

> I don't think that the current fracas is the sort of influence that wins friends.


Brian

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 02:58 PM EDT
After thinking about the recent press releases that SCO has made in regards to licencing, and the requirment to pruchase license Linux for corperate users. It looked obvious that according to SCO as a comercial I was required to purchase a license, with or without a invoice. So any of you other corperate Linux users that are willing to fill out a FTC complaint form here is the URL. https://rn.ftc .gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
Mike BMW

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 09:24 PM EDT
File this under "rumor". According to a poster on Slashdot, he called SCO this afternoon to inquire about an SCO IP License for Linux and was that the licensing program has been suspended indefinitely.

If this is true, I can't help wondering if it's a coincidence that this occurred just a couple of hours after SCO announce their first license sale. Or maybe it's just a coincidence. Assuming that the Slashdot poster isn't mistaken, of course.


Calibax

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 09:32 PM EDT
Hmmm, according to the comment from Brian above, Tarantella owned 17.5 million
shares in the new SCO at one point. That would make them a huge beneficiary of
the current inflated price of SCO shares, assuming they haven't sold them. They
might even have sold some of the shares to pay off the loan from Canopy that is
mentioned in the comment. It would also give them a pretty substantial motive
for keeping quiet about the terms of the sale.
Calibax

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 09:33 PM EDT
I saw that too, so I've contacted the guy and I'll let you know what I find out.
I'm on it like white on rice.
pj

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 11 2003 @ 11:31 PM EDT
"like white on rice"
<ponders>
I guess it must be an American thing....
Calibax

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 12 2003 @ 08:38 AM EDT
Invoices are something new. Before it was a threat: "buy our licenses or we
will sue you" An invoice says, "you already bought something from us, and now
you have to pay for it." If you hadn't actually bought it, is that fraud? style="height: 2px; width: 20%; margin-left: 0px; margin-right: auto;">David L.

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Tuesday, August 12 2003 @ 03:56 PM EDT
Does anyone know whether or not the claim from LinuxWorld AU that

http://ww w.linuxworld.com.au/index.php?id=782728010&fp=2&fpid=1

Boies took the SCO suit on contingency is true?


Pookie

[ Reply to This | # ]

radiocomment
Authored by: Anonymous on Monday, August 18 2003 @ 09:30 PM EDT
SCO sending invoices would be great. Although the Australian Consumer and Competition Commission is interested in SCO's F.U.D campaign they've made it clear to us that they'd be doubly interested if we received an invoice.

It's also clear from the previous mail-out that SCO has made no attempt to cull from the 1,500 firms those that already have paid-up source licenses for UNIX. A mass mailing of invoices to those firms is simply fraudulent.


Glen Turner

[ 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 )