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Santa Cruz Was in the Linux Business, Not Just Caldera - Updated 2Xs
Tuesday, June 05 2007 @ 09:15 AM EDT

Do you recall at the March 7th hearing on IBM's Motion for a Declaratory Judgment on its 10th Counterclaim, the one about copyright infringement and the GPL, that SCO's attorney Stuart Singer told the court that Santa Cruz was the copyright holder in 2001, not Caldera, and at that time Santa Cruz was not in the Linux business?

Well, I did some deep digging and I have proof that in fact Santa Cruz was in the Linux business as far back as 1999. Would you like to see it?

First, here's what Singer told the court:

The facts here are such that IBM is just jumbling together in their submission actions taken by Caldera, actions taken by SCO and leaving out an important issue, which is who owned the copyrights in question at what time?

This is a chart -- Your Honor will recall this chart from last week, because it is the same equitable estoppel argument. The copyrights are owned by Santa Cruz all during this period of time. Santa Cruz is not in the Linux business. They argue, well, there is a few people who attended an X/OPEN conference. Those people did so as individuals. Each of those sets forth in their submission of facts is disputed in our response.

Santa Cruz which owned the copyrights was not in the Linux business during the time of 2001 when IBM decided to embrace Linux, to form the Linux technology center, to encourage others to use Linux, to copy Linux, to contribute technology to Linux, that could not possibly then be based on reliance of any action by the copyright owner.

What Caldera, a company that did own the copyrights during this time, was doing with respect to Linux cannot be any more of a basis for IBM to suggest that the copyright owner doesn't care. But if I distributed Linux or you distributed Linux and IBM said they saw us distributing Linux so it must have been okay,

Here is the evidence I have found, an article in ZDNet UK by Jason Perlow from 1999, "Unix forum cheers Linux":

Linux fever is infecting even the staunchest Unix advocates, as evidenced this week at SCO Forum in Santa Cruz, California.

While the partners involved in the Monterey Project -- the initiative between SCO, IBM, Intel, Sequent Computer and Compaq Computer to create a high-volume unified UNIX -- were upbeat on Monterey's prospects, they still had Linux on the brain....

SCO, too, has jumped on the Linux bandwagon, in spite of its role as one of the Project Monterey ringleaders. This week SCO announced its own Linux and open source professional services offering.

Many of the software vendors exhibiting at SCO Forum were demonstrating proudly Linux versions of their SCO offerings, and distributed demo CDs that ran on both platforms.

While Linux may have been the topic du jour in Santa Cruz, Monterey was a close second.

Here is another article from 2000, "SCO reorganizes, issues profit warning", by Dominique Deckmyn in ComputerWorld:

THE SANTA CRUZ Operation (SCO) warned investors late Tuesday that sales will be below analysts' estimates for its second quarter ended March 31.

A reorganization aims to increase investment in the company's Tarantella software and in Linux, and to reduce expenses in the company's core Unix server business. The California-based company expects to report "significant losses" after reorganization costs. ...

The new structure also will make it easier for each division to pursue the Linux market, Orr said. The company already has announced significant steps in the Linux market, including professional services and a version of Tarantella for Linux.

Orr said the company now intends to take portions of its UnixWare operating system and market them as layered products on top of other Unix versions and Linux. "That way, we get a bigger market for each product individually," Orr said. Programming interfaces for SCO UnixWare and Linux will be "virtually identical," he said, and added, "Increasingly, we will not care which one you use."

Orr did not say how these changes in plans and in structure will affect Project Monterey, the company's joint effort with IBM to develop a 64-bit Unix system for Intel's IA-64 architecture, and based on UnixWare and IBM's AIX technologies. He did say that a major announcement concerning Monterey is due in May.

The kindest way to put it would be that SCO gave the court misinformation.

Update: P.S. IBM announced at LinuxWorld in *1999* that it was embracing Linux, as Singer put it. As usual, Groklaw's readers have found considerably more. It was also in 1999 that IBM's Linux Technology Center started, so Singer was wrong about that too. Here's Santa Cruz's annual report for 1999, which states:

The Professional Services division of SCO offers a series of Linux-related services to help enterprise customers evaluate and manage the cost, benefits and risk of Open Source technologies...SCO Professional Services are available for SCO OpenServer, UnixWare, Tarantella, Linux and Open Source systems.

Another reader points out that the Santa Cruz executive Orr saying that the APIs in UnixWare and Linux would increasingly be "virtually identical" is relevant in that this is the substance of one of the SCO Group's claims of misuse against IBM. And here's a press release from 2000, when Santa Cruz became SUSE's "first global partner (emphasis mine):

SuSE, One of the World's Leading Linux Providers, Chooses SCO as First Global Partner

CeBIT, Hannover, Germany (February 22, 2000) - SCO (NASDAQ: SCOC) and SuSE Linux AG, one of the world's leading Linux providers, today announced an agreement to offer SCO Professional Services to SuSE customers, worldwide. The new offering, along with SCO's global reach, will help extend SuSE's growth into new markets. The agreement marks the first time SuSE Linux AG has partnered for professional services on a global level.

The SCO Professional Services offerings are designed to help SuSE's customers and resellers to get started with planning, installation, configuration, and deployment of their new SuSE Linux systems.

"We are very excited to be SuSE's first global partner and are ready to assist their customers," said David Taylor, vice president of the SCO Professional Services Division. "SuSE is especially strong in Europe and is increasing its popularity in the United States. We feel that our new offerings will give SuSE's customer throughout the world the confidence to rapidly deploy their SuSE Linux systems. This agreement, together with business initiatives with other Linux companies, increases the business opportunities for SCO's Professional Services Division and cements its role as a global leader in services for Linux."

"SuSE's customers are asking for a quality professional services offering to help deploy their systems and understand their business computing needs," said Roland Dyroff, CEO of SuSE Linux AG. "We are confident that our customers will benefit greatly from working with SCO, a global company with more than 20 years in the software and services business."

SCO, Linux, and the Open Source Movement

As a corporate sponsor of Linux International, SCO is a strong proponent of the Open Source movement, citing it as a driving force for innovation and business opportunities.

SCO has strategic alliances with, TurboLinux and Caldera and has taken equity positions in all three companies. During the last year SCO introduced new Linux and Open Source-related professional services. SCO is also a driving force in raising funds and awareness for the Linux Standard Base (LSB).

See for more on SCO's Linux and Open Source activity.

And here's another also from 2000, where Santa Cruz teamed up with Caldera, for heaven's sake, to sell some Linux together:


New OpenLinux eServer and Tarantella Express Bundle Enables
Cross Platform Web Access to Applications

OREM, UT and SANTA CRUZ, CA-July 24, 2000-Caldera Systems, Inc. (Nasdaq: CALD), and Tarantella, Inc. a wholly owned subsidiary of The Santa Cruz Operation, Inc. (Nasdaq: SCOC), today announced the first bundling of Tarantella Web-enabling software in the Linux space. This solution, Caldera OpenLinux Application Server with Tarantella, provides centralized management and deployment of applications on a fast, stable and low-cost platform simplifying IT responsibilities while reducing business costs.

OpenLinux Application Server enables authorized users with a Java technology-enabled browser to run existing Windows, Linux and UNIX applications through the company's local area network or remotely through the Internet - even on a dial-up connection. In addition, companies can instantly deliver new Web-based and existing legacy applications to their users without code rewrites.

"Much of IDC's research has shown that Linux is finding a home supporting Web and network infrastructure in many organizations," said Dan Kusnetzky, vice president of system software research for IDC. "The combination of SCO's virtual user interface serverware, Tarantella, and Caldera's OpenLinux eServer allows organizations to take that one step further. Now users will be able to access applications running on Windows, UNIX or Linux as easily as the new Web-based applications."

"I know many companies who want to keep their existing infrastructure in place and yet take advantage of the low-cost, stability and reliability of OpenLinux. This specialized server allows them to do just that," said Ransom Love, president and CEO for Caldera Systems, Inc.

"I can't think of a better way to leverage your existing infrastructure than using Tarantella on OpenLinux to make applications running on multiple servers available to your employees or customers through a single Web-enabled client."

"We're pleased to team up with Caldera to promote Tarantella Express on OpenLinux eServer in a totally integrated package," said Mike Orr, president of Tarantella Inc. "We see a lot of synergy between Tarantella software and OpenLinux eServer. This bundle provides Caldera's expanding reseller channel with a powerful application server platform to offer their customers, and makes it easier to deploy their customized solutions."

Caldera OpenLinux Application Server with Tarantella includes five user licenses. Businesses may purchase additional licenses providing application access for up to 45 concurrent users per server. Enterprises requiring more than 45 concurrent users may purchase or upgrade to Tarantella Enterprise II.

OpenLinux Application Server is available July 20th. To purchase the solution, dial 1-888-GoLinux or e-mail or call Tech Data at 1-800-237-8931 (TD part number 404161). Caldera Systems and Tarantella, Inc. are demonstrating OpenLinux Application Server on Caldera's 12-city OpenLinux Power Solutions Tour 2000 across the U.S. and Canada, finishing in Dallas, TX on July 27th.

Caldera Systems, Inc.
Caldera Systems, Inc. (Nasdaq: CALD) is a "Linux for eBusiness" technology leader in developing and marketing successful Linux-based business solutions, including its award-winning OpenLinux, NetWare for Linux, Linux technical training, certification and support-with free 30-day phone support and on-site consulting. Caldera OpenLearning Providers offer exceptional distribution-neutral Linux training and certification based on Linux Professional Institute (LPI‘) certification standards. Caldera Systems supports the open source community and is a leader in, and advocate of Linux Standard Base (LSB) and LPI‘.

Caldera, Inc. was founded in 1994. Caldera Systems, Inc. was created in 1998 to develop Linux-based business solutions. Based in Orem, UT, Caldera Systems has offices and 800+ resellers worldwide. For more information, see or in the US call 888-GO-Linux (888-465-4689).

About Tarantella
Tarantella, Inc. is a wholly owned subsidiary of The Santa Cruz Operation, Inc. which provides enabling technologies connecting clients, server-based applications, and networks. The Tarantella product line includes Tarantella Enterprise II for large companies and organizations, Tarantella Express for workgroup and departmental environments, and Tarantella ASP Edition for Application Service Providers. Tarantella products provide access to Windows, mainframe, Linux and UNIX applications, and are available today for all popular RISC and Intel processor-based UNIX servers and selected Linux servers. For more information, see

I think we've established the point.

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