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Caldera Software The Almighty Buck Linux

SCO Wants $699 for Linux Systems 1659

walterbyrd quotes: "'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.' SCO will be offering an introductory license price of $699 for a single CPU system through October 15th, 2003." Update: 08/05 18:24 GMT by M : After October 15, SCO says they'll want $1399. Better buy now!
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SCO Wants $699 for Linux Systems

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  • by kalidasa ( 577403 ) * on Tuesday August 05, 2003 @02:10PM (#6617198) Journal
    Are they only talking about Linux 2.4? If so, is there a reason for that?
  • by Anonymous Coward on Tuesday August 05, 2003 @02:11PM (#6617206)
    We had Red Hat enter the game yesterday. With SCO requiring money for a Linux license, I think it is time for GNU to enter the game and sue SCO for violating terms of the GPL.
  • Outlandish. (Score:2, Interesting)

    by eddy ( 18759 ) on Tuesday August 05, 2003 @02:11PM (#6617216) Homepage Journal

    Pure humor. WTF is going on here? I mean, it's just PR to pump stock we all get that, but doesn't requesting outlandish sums of money put SCO at risk with regards to "extortion"?

  • Proof of ownership (Score:5, Interesting)

    by Platinum Dragon ( 34829 ) on Tuesday August 05, 2003 @02:11PM (#6617231) Journal
    SCO wants money. I want code, and I want proof that they can legally do this. No code? No proof? No money.

    It's that simple.

    I strongly suspect some major holders of Linux copyrights are about to jump in with Red Hat, demanding that SCO prove it can do this.
  • Windows! (Score:3, Interesting)

    by nherc ( 530930 ) on Tuesday August 05, 2003 @02:11PM (#6617233) Journal
    Wow, that makes a Windows 2003 Server cluster look cheap! Windows 2003 Web Edition is only like $400. The standard edition is around $600.
  • The next Microsoft (Score:2, Interesting)

    by ender1598 ( 266355 ) on Tuesday August 05, 2003 @02:11PM (#6617234)
    This seems to be costing even more than Windows! Will this outrageous cost include all the support similar to Microsoft?
  • Re:Only $699??? (Score:3, Interesting)

    by RGRistroph ( 86936 ) <rgristroph@gmail.com> on Tuesday August 05, 2003 @02:13PM (#6617268) Homepage
    I wonder if Microsoft is going to pony up for all the linux machines they have in that lab and elsewhere ?

    They likely will, to increase the FUD and fund SCO. But as a side benefit, we will find out about a lot more linux use in Microsoft than we now know of.
  • oh man (Score:3, Interesting)

    by Tumbleweed ( 3706 ) on Tuesday August 05, 2003 @02:13PM (#6617276)
    And just think, that's the special 'introductory' price!

    Linux may be free if my time is worth nothing, but my time sure ain't worth *that* much! :)
  • by afniv ( 10789 ) on Tuesday August 05, 2003 @02:14PM (#6617287) Homepage
    I notice how they list the trademarks at the bottom of the press release, except for Linux.
  • WTF (Score:5, Interesting)

    by SuperHighImpact ( 463360 ) on Tuesday August 05, 2003 @02:15PM (#6617308)
    an someone explain the logic behind this quote from the article?


    Because the SCO license authorizes run-time use only, customers also comply with the General Public License, under which Linux is distributed.

  • by CodeZombie ( 591563 ) on Tuesday August 05, 2003 @02:17PM (#6617347)
    Anyone wonder why the price just happens to be so close to that of a Windows Server?
  • Thank you /.! (Score:1, Interesting)

    by Anonymous Coward on Tuesday August 05, 2003 @02:19PM (#6617396)
    Not only that this article is not worth to read/know about... with daily spreading this SCO FUD you're doing no good to linux either.
  • Re:Too much crack! (Score:2, Interesting)

    by frane ( 630062 ) on Tuesday August 05, 2003 @02:20PM (#6617429)
    1 CPU $699...Additional single CPU $749

    This cost structure doesn't make much sense. A single CPU license (the first one) costs $699. Any more cost $749. Isn't that backwards? Shouldn't additional 'licenses' be sold at a discount to the first?
  • Re:Too much crack! (Score:2, Interesting)

    by kannibal_klown ( 531544 ) on Tuesday August 05, 2003 @02:20PM (#6617433)
    Sorta wrong comparison...

    They are claiming for all commercial uses. Since Linux is mostly used commercially for servers, this would be comparing Linux 699 for Microsoft's Windows Server (ver 2003 is currently 600 for full server). So the difference is rather small.

    However, SOME businesses do use Linux commercially, as desktops and workstations. In which case they'd also have to shell out that obscene amt of money.

    Man, I though Microsoft was evil. Compared to these guys, Billy-G is a playground bully.
  • Re:Too much crack! (Score:4, Interesting)

    by cvbear0 ( 231010 ) on Tuesday August 05, 2003 @02:21PM (#6617441) Homepage Journal
    Let me run out and buy some of that SCO stock!!!

    If you purchased $699 of SCO stock on March 7th (day SCO vs. IBM on /.), you could cash out with about $3,000 today. (enough for the 4 CPU license)!
  • by MosesJones ( 55544 ) on Tuesday August 05, 2003 @02:21PM (#6617443) Homepage

    George Soros (top investment guy who once made a billion in a day) has said that the markets represent wishes rather than reality. This is also why that "buy terrorist stock" thing from the DoD was complete rubbish.

    Look at SCO, if they were Antartica in PAM the DoD would be saying "BIG terrorist threat at the south pole"

    Markets != reality. Lets face it this is a place where analysts say Sun is in trouble and they have $5.5bn in the bank, I wish I was in that much trouble!
  • Re:Investors ... (Score:2, Interesting)

    by Anonymous Coward on Tuesday August 05, 2003 @02:21PM (#6617447)
    Keep in mind that if you short the stock, you end up driving up the stock price and making the company's CEOs, CTOs, etc (both past and present) fucking rich. In short, shorting a stock just makes the rich richer and you can see exactly how that corporate greed is destroying the United States economy right now.
  • by VistaBoy ( 570995 ) on Tuesday August 05, 2003 @02:22PM (#6617461)
    and what about once they show their evidence in court? It will be public then, and all that kernel hackers are going to do is get rid of it then. The REAL reason they aren't showing code is either they don't have any solid proof, or they want to wait as long as possible to spread a bunch of FUD. Or both. That's why I salute Red Hat for slapping SCO in the face. Their "put up or shut up" campaign will work, and either SCO has proof (we delete it) or they have absolutely nothing and lose a shiatload of money.
  • Comment removed (Score:4, Interesting)

    by account_deleted ( 4530225 ) on Tuesday August 05, 2003 @02:23PM (#6617479)
    Comment removed based on user account deletion
  • by Hamfist ( 311248 ) on Tuesday August 05, 2003 @02:24PM (#6617496)

    Just goes to show you how much Linux is worth. SCO seems to have it valued about right. Of course, Linux is GPL and FREE! Were one to charge for Linux, based on it's high end features, the price is close.

  • Re:Investors ... (Score:5, Interesting)

    by sisukapalli1 ( 471175 ) on Tuesday August 05, 2003 @02:24PM (#6617508)
    The SCO stock is so much shorted that is has become diffcult to borrow the stock to short. Datek (Ameritrade now) did not let me short SCO for a long time (it doesn't let me even now, but I stopped trying).

    Very funny coincedence -- when NOVL said they own the IP for UNIX, I sold SUN and tried to short SCO. Now, after the shit SUN pulled with SCO, I put that money yesterday into RHAT (small amount of money, so it is more like a fun story)

    S
  • by reporter ( 666905 ) on Tuesday August 05, 2003 @02:25PM (#6617527) Homepage
    People who actually understand how operating-system code works should be able to earn a ton of money by shorting the stock of SCO. At some point, we just ask a group of Ph.D. students in computer science at Carnegie Mellon University to write a clean-room version of the disputed code. Problem solved. SCO stock collapses.

    Many of the Wall Street analysts hyping up the SCO stock to their clients have no idea about the ease with which the disputed code can be re-written by capable graduate students of computer science. The analysts are fools, and so are their clients.

    Let us keep this secret to ourselves, the Slashdotters. We will make a bundle of money. Some of us need downpayments on a new house.

  • by csamuel ( 607788 ) on Tuesday August 05, 2003 @02:27PM (#6617558) Homepage
    In the conference call today, SCO declared that the $699 price for a single CPU system will climb to $1399 after October 15!

    Where do I sign up???
  • by wolf- ( 54587 ) on Tuesday August 05, 2003 @02:27PM (#6617559) Homepage
    As a contractor and an consultant, I'm documenting all lost sales and damages. Should SCO lose, and it be shown in court that this was truly BS/FUD, I'll have legal recourse.

    The SCO folks are making such GENERAL statements against Linux, Linux Users, and Linux consultants, that it should NOT be hard to prove their negligence/libel/slander in court.

    But by the end of the SCO/IBM lawsuit, the SCO bigwhigs will have unloaded all their stock anyway, and there won't be much to collect on.
  • by Platinum Dragon ( 34829 ) on Tuesday August 05, 2003 @02:27PM (#6617565) Journal
    Either the next three months when the Red Hat injunction is decided upon, or April 5, 2005, the date for the SCO-IBM contract dispute lawsuit.

    Or, possibly sooner--I'm seeing rumblings on the Yahoo SCOX message board about lawsuits against Darl's crew being prepared from many quarters.
  • Re:Investors ... (Score:5, Interesting)

    by rsheridan6 ( 600425 ) on Tuesday August 05, 2003 @02:29PM (#6617604)
    At MSN money, SCOX gets a "D" for ownership, meaning that the insiders at SCO are selling their own stock. I'm sure they know things we don't know, and this would seem to indicate that they know they're full of shit (OK, so maybe we all knew that). I'm not exactly Warren Buffet, but this seems like a case of some sleazes hyping their worthless stock, finding some fools to buy it at an inflated price, and counting their money while those same fools find themselves with worthless stock.. A fool and his money are soon parted. BTW the stock is up about %1100 since this thing started so it's working admirably.
  • Re: Investors ... (Score:5, Interesting)

    by Black Parrot ( 19622 ) on Tuesday August 05, 2003 @02:32PM (#6617655)


    > PS: SCO is going down, and everybody know it (including SCO). The question is: will they drag Linux too....

    It's a kamakazi attack. Remember that these people don't have any interest in SCO as a software firm. They're ambulance chasers, jackals who bought a moribund enterprise in hopes of squeezing some cash out of it and discarding the husk. If they can get the most cash by hurling it at other companies as a bomb, then that's exactly what they'll do with it.

    And it appears that that is the course they decided on.

  • Re:Investors ... (Score:5, Interesting)

    by Anonymous Coward on Tuesday August 05, 2003 @02:33PM (#6617675)
    This was predicted yesterday...
    by dmaxwell (43234) on Monday August 04, @03:29PM (#6608641) As seen on Yahoo Finance. Time to buy? :) I know you're joking but from a strictly speculator point of view, it might not be a bad idea. I've been watching the SCOX price for a few months and have noticed a tendency of SCO's PR. Whenever the price drops or plateau's, you can count on yet another outrageous PR release from SCO to pump it back up. Before the week is out, expect SCO to make some sort of apocalyptic statement in regard to RedHat
    I think this is right on.....this is likely a response to sagging stock prices after RedHat's decision to sue. What I want to know is: Is manipulating stock prices like this legal?
  • Re:Too much crack! (Score:1, Interesting)

    by Anonymous Coward on Tuesday August 05, 2003 @02:34PM (#6617692)
    This is why some people consider stocks educated guess gambling.

    If you think you can pick and choose stock so well, you wouldn't be saying "If...". You would have bought it and be saying how you made loads of money off the SCO scheme. Maybe even some comments are what a visionary or fortuitous you are.

    What you're doing now is selectively going back and looking at stock increases. "Gee, I should have bought yahoo stock when it came out." Easy to say -after- the fact.
  • but (Score:3, Interesting)

    by jefu ( 53450 ) on Tuesday August 05, 2003 @02:37PM (#6617743) Homepage Journal
    It looks to me like SCO is really claiming that they own the idea of Unix somehow (their phrase "an operating system that is an unauthorized derivative of UNIX") and that they may then go after the BSD branch next.

    Legally this may be untenable, I don't know - but it would probably pump up SCO stock prices and I think this is all they care about.

  • by B3ryllium ( 571199 ) on Tuesday August 05, 2003 @02:38PM (#6617744) Homepage
    ... there are two problems with that:

    1) The disputed code is under NDA, and SCO are being tightwads and not letting it escape. They know that the instant the disputed code escapes, it will be re-coded and re-integrated in a way that removes this aspect of their case.

    2) SCO also claims that it has process-patents, which I think means that no matter how you rewrite the code, it still DOES the same thing, which makes it a violation of their IP.

    In summary, I think that what SCO should really do is bottle up whatever drugs they're smoking, and start selling them for these licensing prices. At least there would be a demand for the drugs, they seem rather potent.
  • Re:Too much crack! (Score:5, Interesting)

    by innocent_white_lamb ( 151825 ) on Tuesday August 05, 2003 @02:38PM (#6617753)
    A single CPU license (the first one) costs $699. Any more cost $749. Isn't that backwards?

    Doesn't SCO claim that its properties include only SMP and related technologies? If that's the case, then a single CPU license would not be required at all because SCO's technologies apply only to multiple-CPU boxes.

    Mind you, their story has changed so often it's hard to know what they actually claim now. Today's claims are probably different than yesterdays. Oh, it's after noon? Then the claims are different than they were this morning.
  • Re:Too much crack! (Score:5, Interesting)

    by DJStealth ( 103231 ) on Tuesday August 05, 2003 @02:44PM (#6617847)
    I baught CALDera stock at their IPO for $27/share.

    Since then, it has gone down to $0.20/share and did a 4x reverse split. Then merged with SCOX

    Now at $12.80/share (divide by 4 = $3.20); I've lost..

    Good thing I didn't buy too many.
  • by pete-classic ( 75983 ) <hutnick@gmail.com> on Tuesday August 05, 2003 @02:44PM (#6617853) Homepage Journal
    Could I claim I hold copyrights to code in, say, Photoshop or Windows, refuse to substantiate those claims, then extort money from users of those programs? People I don't even have a business relationship with? People who aren't even infringing on my (supposed) copyrights, but are merely using the software under license from a third party.

    That has to qualify as racketeering. It just has to.

    -Peter
  • SCO Germany (Score:2, Interesting)

    by Anonymous Coward on Tuesday August 05, 2003 @02:47PM (#6617886)
    This is what SCO Germany is saying:

    "...die urheberrechtlichen Anspruche, die SCO geltend macht, hatten kaum Substanz..."

    The copyright issues SCO is claiming don't have much substance.

    In Europe SCO don't have the Right to force money (by several court decisions).

    So, it's an american problem only.
    Bring them to court! Everyone. Now!
  • by invalid_address ( 521011 ) on Tuesday August 05, 2003 @02:49PM (#6617911)
    i just got off the conference call with the CEO and some other chodes from SCO Group. darl mcbride used vague references and subtle threatening words, but what's new.

    -> he made use of the RIAA reference and the 'billions of dollars' in losses to the companies and artists. and how illegal copyright theft of internet music declined 30% once the RIAA layed the smack down on end users with individual lawsuits.

    -> SCO is prepared to head down that path, but would prefer to remedy the situation without this. yadda yadda lip service. expect your subpoena soon

    please send your 'special compliance synergy introductory value-added tiered schedule pricing' check to lindon, utah ASAP. failure to comply will result in you being hit by a meteor or slapped with a 6-7 figure lawsuit for 'hurting a faceless entity's feelings'.

    SCOX - +0.78 so far today. this is disappointing.

    please wsj, reuters, and other major news organizations make these evil men and women look like the corporate terrorists they are. but oh wait, darl mcbride is a CEO, he's SOMEONE!!! he's SPECIAL!!! don't hurt his or SCO's feelings, give them 700$ to go away...

    for now.
  • SCO's SEC Filings (Score:2, Interesting)

    by Trolocsis ( 319617 ) on Tuesday August 05, 2003 @02:53PM (#6617967) Homepage
    The scoop on who at the company is selling their stock can be found here [sco.com] in SCO's SEC filings. It appears that some of the chief people in charge are dumping thousands of shares of stock.
  • FAQ (Score:3, Interesting)

    by booch ( 4157 ) <slashdot2010NO@SPAMcraigbuchek.com> on Tuesday August 05, 2003 @02:54PM (#6617984) Homepage
    SCO has a FAQ [sco.com] on their website. There are also several other pages on the Linux licensing [sco.com].

    There are a lot of weird answers in the FAQ. One is a statement about not offering the license to Linux distro vendors, because that would conflict with the GPL. Also of note is that Caldera/SCO Linux users need to register for a license. It doesn't say if it's free for them or not. Embedded devices can be registered for $32, but it never says what constitutes and embedded device.

  • by marienf ( 140573 ) * on Tuesday August 05, 2003 @02:55PM (#6618001)
    Dear fellow geek,

    Consider your future as laughing-stock at your next employer. The shame in working for SCO is fast approaching that of working for Microsoft.

    Consider that you will need a job after SCO Enrons (hey, any noun can be verbed), and that I, for one, would be suspicious about taking you on, if I knew you had stayed throughout this outrage.

    So for your own good, WALK OUT NOW and make it a public walk-out! Do it while your options are still worth money, at least. Hurry!

    WKR,
    A concerned fellow geek.
  • Re:Too much crack! (Score:5, Interesting)

    by luzrek ( 570886 ) on Tuesday August 05, 2003 @03:00PM (#6618072) Journal
    This isn't even capitalism. I think that Copyright law, and anything else from the government that prevents anyone for selling anything they want for whatever they can get for it is Socialism. When the government is also the only distributor, it is called Communism.

    What SCO is doing is called extortion/blackmail.

  • Re:Too much crack! (Score:5, Interesting)

    by Thing 1 ( 178996 ) on Tuesday August 05, 2003 @03:06PM (#6618129) Journal
    And if you buy the correct series of put options on SCO, you can be 500% better off when the judge tells SCO to go fuck itself sideways with a wire brush.

    As far as I've been able to research (see CBOE) [cboe.com] there are no options of any type for SCO.

    This is too bad, because although puts have a time limit, they're much more profitable than selling short (max gain is 200%, if you use all of your margin ability which is of course very dangerous). With the right puts (I'd buy one year out), you could easily make 500%.

  • by mcc ( 14761 ) <amcclure@purdue.edu> on Tuesday August 05, 2003 @03:10PM (#6618175) Homepage
    Assuming that SCO loses this battle, I doubt there will be much left of the company to go after.

    Once SCO has lost the battle, there will still be the Canopy Group and the SCO board members, McBride and the rest. I am willing to bet that once SCO dies miserably, Canopy Group will have made more than many times over enough money they extracted from the stock manipulations they put SCOX through to have made the whole exercise more than worthwhile.

    Is there any way at all persons like Mr. Wolf- would have the ability to go after Canopy Group, as the majority shareholder and pretty clearly the one guiding SCOX through all this, for the damages he would be able to demand from SCOX had not Canopy Group and Mr. McBride driven SCOX into the ground?

    Is there any way that, once the intellectual-property thing serves useless except as a stock scam, people who were originally shareholders of Caldera and wound up with their Caldera stock becoming worthless paper after Canopy Group drove SCOX into the ground with their new "strategy" (and absconded with the money) could sue Canopy Group?

    I realize most of our corporate law seems to be designed to ensure stockholders are not responsible for the actions of the company. However, recently, in the wake of the Enron Witchhunt, CEOs and other corporates who engage in openly deceptive practices actually have been getting in trouble.

    Surely there's some sort of laws on the books to prevent individuals like McBride and groups like Canopy from taking over a small company like Caldera and using it as a shell to perform illegal actions (like libel, and barratry, and deceptive trade practices) with no intent or purpose for the company except to allow themselves to perform illegal acts without being legally liable? Surely the fact that it will be possible to show the Canopy Group's sudden majority ownership coincided with the strategies that led to SCOX being wiped out in counterlawsuits from IBM and Redhat and people like Wolf-, and the fact it will be possible to show the Canopy Group benefited GREATLY from the stock actions they performed during these strategies, means that once SCOX has been wiped out Canopy Group will be in some way liable for whatever damages post-bankruptcy SCOX couldn't be made to pay?

    Yes? No? Is there an investment lawyer in the house?
  • by FreeUser ( 11483 ) on Tuesday August 05, 2003 @03:12PM (#6618204)
    Wow, that makes a Windows 2003 Server cluster look cheap! Windows 2003 Web Edition is only like $400. The standard edition is around $600.

    That's the whole idea. Why do you think $CO priced their bogus (and illegal) licenses the way they did, so soon after Micro$oft purchased that expensive, utterly unnecessary license in order to prop them up (and $un added to their kitty as well)?

    This is about FUD and misinformation, with Microsoft as the primary beneficiary and Sun as ugly and despicable opportunist. Both had better exploit it well, because it won't last, SCO will almost certainly not survive any legal activities that actually take place within the court room, and anyone found to be in collaboration on this may well end up in prison or in debt as well.

    Which will be a delightful pleasure to watch, although if Enron is any indication, most of these rich fucks will walk away with their ill-gotten wealth, stepping over the corpses of those they defrauded on their way to the bank, laughing all the way.

    So much for capitalism, or justice, in America.
  • I called (Score:5, Interesting)

    by radon28 ( 593565 ) on Tuesday August 05, 2003 @03:13PM (#6618214)
    And they refuse to provide any information until you give them your phone number and name. Yeah, I don't see them sending me any bills in the mail.
  • by worldcitizen ( 130185 ) on Tuesday August 05, 2003 @03:15PM (#6618245)
    > Unless there is proof, there is no need to pony up to SCO and fork out the dough

    Actually, even if there is proof, this "license" is still worthless. If SCOX is finally found to have some proprietary IP (doubtful, but let's examine the possibility for the sake of the analysis) the GPL would forbid distribution of the combined result so your license would basically enable you to use only SCOX's pieces but it would effectively prevent you from legally using the rest of the kernel. You just paid for something that in the end has no use.

    Companies buying this license are throwing away their money. If your company is thinking about purchasing one, it is your duty to warn the decision makers that the purchased item is unuseable.
  • by fatboy ( 6851 ) * on Tuesday August 05, 2003 @03:16PM (#6618251)
    "Linux" would probably be ruled lost by a court, because Linus Torvalds, the holder of the mark, has not enforced any rights he may have had to the mark. I am a lawyer.

    Think again. [slashdot.org]
  • Obvious things to do (Score:2, Interesting)

    by kroyd ( 29866 ) on Tuesday August 05, 2003 @03:19PM (#6618289)
    Just off the top of my mind:

    • Make a proper worldwide list of SCO resellers, and have people from each contry conntact each reseller. Just a few press releases saying "we are no longer a SCO reseller" would be worth it. (The SCO / Caldera site is not surprisingly broken for finding official resellers.)
    • Check if The Canopy group is dumping SCO stock. The used to own 65% or so, if they're dumping stock it should be worth a FP on slashdot, if not news.com.. I'm not sure how you do this, you probably have to have a bit higher market access than most people.
    • Check if Unixware contains any obvious code stolen from Linux. Later versions have ext2 support and such, and there is the linux compability layer. Is all that _really_ written from scratch? If someone can show that "SCO stole thousands of lines of code from Linux and here is the proof" it would take a LOT of the wind out of their sales. And then there is device drivers.. In 10 years I doubt that they haven't copied anything from Linux.
    • What more? Oh.. Perhaps the people at www.thesmokinggun.com could dig something up on a SCO exec? Like this mugshot [thesmokinggun.com] (not safe for work or anywhere).
    Oh, and I got the partner page to work on sco.com: For where I live the first listed is a privat person, then there is a huge dairy (i.e. milk and cheese producer).. I wonder if they know they sell SCO products ;)
  • SCO icon? (Score:5, Interesting)

    by ed.han ( 444783 ) on Tuesday August 05, 2003 @03:20PM (#6618305) Journal
    aren't we overdue for a new, less sympathetic SCO icon? i mean, if we borgify M$ surely something similar is way past warranted for these guys?

    ed
  • by Anonymous Coward on Tuesday August 05, 2003 @03:22PM (#6618339)
    What they are saying is that they are essentially making linux closed source. You can't compile your own kernels, and especially not hack the code and then compile them, because then you would be using SCO source code (not that they'll tell you which source code) and they are only selling the license to the BINARY.

    This is where they violate the GPL. If they want to sell licenses to code integrated into the linux kernel, those licenses can not be more restrictive than the GPL.

    So they are telling you to only use pre-compiled versions of the linux kernel, that you bought from a vendor. Otherwise they claim you are violating their rights by using the SOURCE to which they don't sell a license.

    The whole thing is a bit disingenious, of course. Outsource the compilation to where ? To which outsourcers have to sold a source license to, Darl ? Is SCO, by suggesting I buy a shrink wrapped box set, implying that RedHat has a source license from SCO ?

    It's clear this hasn't been thought through very far; or if it has, they are unwilling to reveal the final extent of their planned control. I think it is most likely it is poorly thought through, there is no real infringing code, and this is all a scam to dump SCOX stock.
  • by Anonymous Coward on Tuesday August 05, 2003 @03:25PM (#6618372)
    May be I didn't get it right, but from what I understand SCO "claim" that they have found bunch of their UNIX code in Linux 2.4. Even if they have show their source code to show that their claim that their code matched w/ Linux 2.4. But that doesn't mean the code have to come from SCO, it could have been the other way around. It could have been their programmers who steal Linux code. And please don't tell me the history of the UNIX is long before Linux, because I know that is true, but SCO have to prove that their code(which they claim to be inside Linux) exist before Linux 2.4 not just one of the updates they have after. And for what revision of Linux 2.4 do such changes occur. And specifically which part of the Linux that was matched w/ UNIX V code. Could it be a certain generic code for protocol, filesystem, and etc?
  • by hackstraw ( 262471 ) * on Tuesday August 05, 2003 @03:25PM (#6618373)
    How can SCO get away with charging $699 for a license to code that they claim is on your computer, when they have offered no proof that it is on your computer?

    Call them up. 1-800-726-8649 I've left a message and they are supposed to call me back.

    slashdot that phone!
  • Re:Too much crack! (Score:5, Interesting)

    by Nogami_Saeko ( 466595 ) on Tuesday August 05, 2003 @03:26PM (#6618374)
    SCO intends to use force to accomplish their goals, not voluntary association.

    Well, I rather expect that rather than SCO as a whole, it's more their board of directors/president.

    Regardless if they are eventually successful or not, the sudden stock leap after they started down the litigation path probably made all of the higher-ups in the company a big boatload of money. And they're gonna keep filling that boat as long as possible.

    As soon as things starts to turn south, losing lawsuits, frustrated "customers" etc. - I'd imagine that most of the higher-ups in the company will cut the ropes and resign and the boat-o-cash will sail-off into the sunset.

    Of course, this would leave the employees and investors of the company high and dry while the CEOs enjoy their money in the bahamas...

    But that's how business is supposed to work these days, right?

    N.
  • Re:Too much crack! (Score:5, Interesting)

    by Darth Yoshi ( 91228 ) on Tuesday August 05, 2003 @03:30PM (#6618423)
    At $699 they very obviously don't expect anyone to pay (except maybe some allies like Microsoft who will very publicly purchase some token seats).

    Well, Microsoft uses Linux in their test lab [slashdot.org]. I wonder how many licenses they'll be purchasing.
  • Indemnity (Score:2, Interesting)

    by Anonymous Coward on Tuesday August 05, 2003 @03:35PM (#6618480)
    This is a serious issue. Even if RH has a defense fund, why has no organization offered indemnity?

    An article like [forbes.com] this at forbes I think is enough to scare a CTO. We can't keep looking at this like an absurd joke, IBM needs to setup to the plate.
  • by demonbug ( 309515 ) on Tuesday August 05, 2003 @03:36PM (#6618493) Journal
    The complaint [sco.com] filed by SCO. Fairly interesting in a legal sort of way. An interesting segment from the complaint...

    Limitations of Linux Before IBM's Involvement

    82. Linux started as a hobby project of a 19-year old student. Linux has evolved through bits and pieces of various contributions by numerous software developers using single processor computers. Virtually none of these software developers and hobbyists had access to enterprise-scale equipment and testing facilities for Linux development. Without access to such equipment, facilities, sophisticated methods, concepts and coordinated know-how, it would be difficult or impossible for the Linux development community to create a grade of Linux adequate for enterprise use.

    83. As long as the Linux development process remained uncoordinated and random, it posed little or no threat to SCO, or to other UNIX vendors, for at least two major reasons: (a) Linux quality was inadequate since it was not developed and tested in coordination for enterprise use and (b) enterprise customer acceptance was non-existent because Linux was viewed by enterprise customers as a "fringe" software product.

    84. Prior to IBM's involvement, Linux was the software equivalent of a bicycle. UNIX was the software equivalent of a luxury car. To make Linux of necessary quality for use by enterprise customers, it must be re-designed so that Linux also becomes the software equivalent of a luxury car. This re-design is not technologically feasible or even possible at the enterprise level without (1) a high degree of design coordination, (2) access to expensive and sophisticated design and testing equipment; (3) access to UNIX code, methods and concepts; (4) UNIX architectural experience; and (5) a very significant financial investment.

    85. For example, Linux is currently capable of coordinating the simultaneous performance of 4 computer processors. UNIX, on the other hand, commonly links 16 processors and can successfully link up to 32 processors for simultaneous operation. This difference in memory management performance is very significant to enterprise customers who need extremely high computing capabilities for complex tasks. The ability to accomplish this task successfully has taken AT&T, Novell and SCO at least 20 years, with access to expensive equipment for design and testing, well-trained UNIX engineers and a wealth of experience in UNIX methods and concepts.

    86. It is not possible for Linux to rapidly reach UNIX performance standards for complete enterprise functionality without the misappropriation of UNIX code, methods or concepts to achieve such performance, and coordination by a larger developer, such as IBM.

  • by mhesseltine ( 541806 ) on Tuesday August 05, 2003 @03:36PM (#6618499) Homepage Journal

    On my system:

    #find /lib/modules/`uname -r` | grep smp

    #find /lib/modules/`uname -r` | grep numa
    #find /lib/modules/`uname -r` | grep rtc
    #grep NUMA /usr/src/linux/.config
    #grep RTC /usr/src/linux/.config
    CONFIG_RTC is not set
    #grep SMP /usr/src/linux/.config
    CONFIG_SMP=n

    Nothing found. The software isn't on my system. I'm not paying SCO a dime.

    As to your blender analogy, if you take my blender, I don't have access to it. If I have SCO's IP, they still have access to it.

    As to the illegal copy of Photoshop, that's a little closer. However, since I'm not using it, I could just as easily delete it, and therefore not be out of compliance. If, however, I use the software, then yes, I owe Adobe the license fee for the use of the software. The point being, since I'm not using any of SCO's IP, I don't owe them anything.

  • by The Lord of Chaos ( 231000 ) on Tuesday August 05, 2003 @03:40PM (#6618533)
    Then why are SCO charging for single processor licenses? Sure a SMP compiled kernel will use SMP code but a kernel compiled without SMP should be exempt since it doesn't use the SMP code that SCO allegedly owns.
  • My analysis (Score:5, Interesting)

    by mec ( 14700 ) <mec@shout.net> on Tuesday August 05, 2003 @03:43PM (#6618572) Journal
    Read McBride's opening statement closely:


    What is at issue is more than SCO and Red Hat.
    What is at issue is intellectual property rights in the age of the Internet. ... important debate ... [about] proprietary or communal property according to Richard Stallman's vision.


    He is calling out RMS by name. This is a lot worse than "hey your product infringes on our product". This is a declaration that proprietary source and open source cannot co-exist in the same world.

    In his closing remarks, McBride likens SCO's actions against Linux end users to the RIAA's actions against P2P copyright infringers.

    This is some lethal FUD here. There is a huge difference between music thieves and open source developers. Music thieves are in fact making using other people's work without their consent, whereas open source developers create their own independent content and distibute it on their own chosen terms. We are indies. We are not warez d00dz.

    Back to SCO ... the key part here is that SCO has developed a new business model.

    Classical company: make products and services, sell them to customers for money, profit.

    F/OSS community: make products and services, give them away, self-generating funding, community rewards (but not much profit).

    SCO: generate FUD, sell "ScoSource licenses" to Microsoft and Sun, profit.

    Classical companies took some time to adjust to the radically different approach of the F/OSS Community. We don't breath the same oxygen that they do, so strategies that worked against, say, Netscape, do not work against, say, Apache.

    Similarly, SCO has a radically different model. SCO throws shit like a mad monkey at the Bronx zoo. For a classical corporation, there is huge backlash to this, because customers tend to avoid the products and services of the shit-thrower. But SCO doesn't care, because they don't make their profit from selling products and services ... they make it by filing lawsuits (Caldera International versus Microsoft) and by selling their services as fudmongers!

    How to fight something like this?

    Well, Linuxtag did something effective. Red Hat's lawsuit may or may not be effective, but it sure is good for morale. I asked RMS to boycott SCO -- remove support for SCO operating systems from GNU products -- but he replied that he didn't think it would be effective (because SCO can just maintain their own branch). I disagree with that and I urge more developers to follow Fyodor's lead and remove OpenServer and UnixWare as configuration options in their software.

    SCO makes money by throwing shit at Linux -- not indirectly by increasing sales of their products (which does not work very well), but directly, in the form of checks from Microsoft and Sun.

    SCO has essentially two assets and is fighting on two levels. They have legal claims and are pursuing those in court. But they also have PR assets. It is deadly for us to reply to their PR attacks with legal defenses. We have to attack SCO's PR assets.

    Some ideas for an attack:

    . SCO claims they spent hundreds of millions of dollars developing and purchasing the rights to Unix. Well, actually, they probably spent a lot less than that. Check how much they raised in their IPO and how much revenue they've made since then and how much they've actually spent on engineering.

    . SCO even bought their name! The SCO Group didn't build a reputation on that name. They used to be Caldera International, but when that didn't work, they bought the name from the Santa Cruz Operation.

    . SCO isn't a product and service company. Their revenues are tiny and declining. Their VP of Engineering sold all his stock (and I've heard a rumor that he left the company, haven't tracked it down yet). It's not enough to point out that they are litigious. Point out that they have nil legitimate technology to bring to the table.

    Sorry this rambles a bit, I should write an essay instead of just rambling in a comment box.

  • by Anonymous Coward on Tuesday August 05, 2003 @03:46PM (#6618605)
    Let's see:

    Mac OS X: $129
    Mac OS X Server v10.2 (10-User Lic.) $499.00
    Mac OS X Server v10.2 (Unlimited) $999.00

    And SCO wants what for what?! $1399 for a SINGLE processor after October 15th?!

    Pass the popcorn, this is getting amusing.

  • Re:Too much crack! (Score:5, Interesting)

    by zerocool^ ( 112121 ) on Tuesday August 05, 2003 @03:47PM (#6618619) Homepage Journal
    The amount required to purchase a licence (at the discount rate) for every linux 2.4 machine on Netmar's (my employer) network would set us back about 18% of our yearly gross. At that rate, we'd end up going through and compiling 2.2 kernels for everyone.

    But, think about it large scale - think about people who have many many servers, a. la. RackShack.

    RackShack claims 14,000 servers online. Do the math.

    It would cost RackShack 9.8 Million Dollars ($9,800,000) to come into compliance w/ SCO.

    SCO, go fuck yourself.

    Sincerely
    ~Will
  • Re:v2.6 is safe! (Score:2, Interesting)

    by vt0asta ( 16536 ) on Tuesday August 05, 2003 @03:51PM (#6618668)
    Well, luckily for me I am running Kernel v2.6 so I am free from the chains of SCO! What I plan to do instead is start charging everyone the fee of $6.99/license so that you can all run Linux v2.6 (binary only so that you can be in compliance with the GPL!)


    You bring up an interesting point that isn't being well addressed. SCO has stated in the conference call that their intentions are to release a binary only run time license. Since the code is covered under the GPL, they are then required to provide you the source code free of charge except for reasonable media expenses. If they fail to do so, they are in violation and their license can be revoked, and if I remember correctly, this would mean they are infringing on all of the linux kernel developers copyright.

    Once they cross the threshold of denying you the source and your ability to freely modify and distribute the source normal developers can turn on the hot water. I think what is needed is a Linux Legal "Offense" fund, to help developers go after companies that violate the GPL.

    SCO needs to be reminded of which end is up. Distributing binaries, without releasing the code under the GPL is in direct violation of the GPL. Apparently they are going to directly test the very thing that needs to be tested in the courts with regards to the GPL.

    Stallman wasn't awarded the title of Genius for creating the GPL for nothing. Stallman designed it so that if the GPL ends up not holding water, then basic Copyright laws take effect (which includes the often feared DMCA). Red Hat and others are not actually selling you a license, they are just charging you for the cost of putting the source code onto the media, documentation, and a nice pretty box if you would like.

    SCO intends to take the work of others (which is currently protected by copyright) and sell it. At that point, at the very least they are infringing on copyright of linux developers, and they will have to reap the whirlwind of _all_ of the IP they are violating.

    I believe there is more than enough kernel developers over the course of linux, to warrant a class action lawsuit against SCO for copyright infringement.

    If SCO collects one penny for any binary distribution sans offering GPL'd source code, they are in direct violation and damages and other remedies can be sought under copyright law and the DMCA.
  • by axxackall ( 579006 ) on Tuesday August 05, 2003 @04:15PM (#6619020) Homepage Journal
    The license insures that customers can continue their use of binary deployments of Linux without violating SCO's intellectual property rights

    I guess the keyword here is binary - those who compiled Linux from scratch may relax and safe money. Perhaps that's b/c the "secret IP" code of SCO is only in binary format. I wonder, do they petent x86 instruction code set? If so, how about Linux users on PPCs and SPARCs? If not then what makes the binary deployment to be so special comparing to the source-code based ones?

  • Re:Too much crack! (Score:3, Interesting)

    by jbr439 ( 214107 ) on Tuesday August 05, 2003 @04:16PM (#6619024)
    Yes, but by my read of said FAQ, the mere act of running a SSH service on your desktop Linux magically transforms it into a $699 Linux server.

    From the FAQ:

    What is the definition of a client vs a server system? How do I know which license to purchase?

    A Linux (Client) Desktop system is a single user computer workstation running Linux. It may provide personal productivity applications, web browsers and other client interfaces (e.g., mail, calendering, instant messaging, etc). It may not host services for clients on other systems.

  • Re:Too much crack! (Score:3, Interesting)

    by nobody69 ( 116149 ) on Tuesday August 05, 2003 @04:17PM (#6619037)
    Luzrek -

    You may want to be a little more careful with your use of the words 'anything' and 'anyone'. From a strict interpretation of your post, if I can't sell your CD collection on the street for $50, we're living in a socialist society. (How'd I get your CDs? I bought them from this guy whose name and description I have suddenly forgotten.) That would mean that capitalism is actually a kleptocracy, which is probably not what you had in mind.

    nobody69
  • by Znork ( 31774 ) on Tuesday August 05, 2003 @04:24PM (#6619162)
    The FSF definitely has the resources and the legal counsel, in Eben Moglen, itching to wipe the courtroom with a GPL violator.

    However, depending on wether any developers have or have not signed over their copyrights the FSF may or may not be able to file a lawsuit.

    However, again, the severity of SCO's violation falls well within the range of criminal copyright violation which means our good friends the feds will have the privilidge of dragging Dear Darl in chains to prison where he gets to be some nice big guys McBride. Civil lawsuits for damages would be easier to file after criminal charges have gone through.
  • Put it in escrow! (Score:4, Interesting)

    by gbulmash ( 688770 ) <semi_famous@yah o o . c om> on Tuesday August 05, 2003 @04:26PM (#6619202) Homepage Journal
    How about this? Anyone who is truly wetting their pants over this should buy a license, but should put the $699 in an interest bearing escrow account with payment being conditional on SCO winning their cases on all counts and proving unequivocably that they own all the necessary rights to make the demands they've made.

    It's actually a fairly well-used method of payment in cases of dispute.

    If I live in California and dispute my phone bill, I can put the full payment on deposit with the Public Utilities Commission pending resolution of the dispute. This way my local telephone service provider can't file a negative credit report on me for not paying my bill, but they don't get any of my money until the dispute is resolved. Once it's resolved, the PUC gives the phone company the amount to which they're entitled, and if I've successfully argued my case, I get the disputed portion back.

    If SCO is so sure of their claims, they should have no problem with this solution. Your only loss is getting passbook-style interest on the money rather than the interest you could get from more aggressive investments.

    - Greg

  • by Markos ( 71140 ) on Tuesday August 05, 2003 @04:34PM (#6619342)
    From the Linuxtoday article [linuxtoday.com]:


    Thomas C. Carey, a partner at of the Boston IP and business law firm Bromberg & Sunstein and chairman of the firm's Business Practice Group, thinks Red Hat has a very good case. "Assuming for the moment that SCO is off-base in its allegations, this complaint is enough to rock SCO to its foundations." Still, "A lot will depend upon the vigor with which the matter is pursued. My presumption is that the suit is serious and will be pursued with full force."

    But Carey warns, "SCO is in some danger even if its allegations are correct, simply because SCO has put everyone in an impossible position. What can they (a Linux distributor or end-user) do if they don't know which code is infringing? If, to that unfairness, you add a conclusion that SCO has its facts wrong, then SCO's liability to Red Hat and others could be very substantial. And if SCO knows (or should know) that its facts are wrong, then you can kiss the company good-bye."

    Last, but far from least, Carey thinks that there's "a potential securities fraud action is buried within the pleadings. Red Hat speaks of Canopy Group (SCO's primary owner) having raked in millions in cash since the start of this affair. Red Hat notes that its own stock price has declined 20% in a month. This is the stuff of securities lawsuits. Red Hat could amend its claims to include a securities law claim, or another law firm could bring a class action lawsuit against SCO on behalf of selling Red Hat shareholders who have been harmed by the low price they get. Finally, it is conceivable that the SEC or the Justice Department could take an interest in this, viewing it as market manipulation."
  • by defwu ( 688771 ) on Tuesday August 05, 2003 @04:43PM (#6619485) Journal
    Maybe some of us should try complaining to someone who actually looksinto bad business practices?
    http://complaints.bbb.org/Welcome.asp [bbb.org]
    I am going to file a complaint.
    They do take these things seriously, and I firmly beleive that these announcements amount to nothing more than misleading business practices.
  • by Kaa ( 21510 ) on Tuesday August 05, 2003 @04:55PM (#6619681) Homepage
    Yeah what is capitalism? From what I understand a simplified definition of capitalism would be a system where investors put money in and expect a return on investment.

    Basically, capitalism is a system where individuals are personally free (as opposed to feudalism) and can own means of productions, e.g. factories (as opposed to socialism/communism).

    Investors were putting money into ventures and expecting a return long time before capitalism.
  • Simple (Score:5, Interesting)

    by booch ( 4157 ) <slashdot2010NO@SPAMcraigbuchek.com> on Tuesday August 05, 2003 @04:56PM (#6619697) Homepage
    The GPL explicitly states that agreeing to the GPL license is not required to use the software. It is only required to modify or distribute the code (in binary or source). The SCO license only applies to running the software, not distributing or modifying it. So the 2 licenses are for completely separate things -- they can't conflict. From section 0 of the GPL:
    Activities other than copying, distribution and modification are not covered by this License; they are outside its scope.
    Of course, there are a few problems with SCO's attempt to steer clear of a conflict with the GPL. Section 6 of the GPL states:
    You may not impose any further restrictions on the recipients' exercise of the rights granted herein.
    and section 7 says:
    If you cannot distribute so as to satisfy simultaneously your obligations under this License and any other pertinent obligations, then as a consequence you may not distribute the Program at all.
    The question is whether "The act of running the Program is not restricted" in section 0 is considered to be one of "the rights granted herein". Technically, it is not, since the right to use a software program is not one of the rights granted to a copyright holder. The GPL relies on the fact that the right to run a program is not restricted by Copyright law. But if somehow that turns out not to be the case, SCO may have found a loophole in the GPL.

    SCO is not distributing any Linux code (source or binary) with this license. They are assuming you've already purchased "infringing" software. So they're not distributing anything. Of course, they've already modified and distributed the Linux code, so they've already agreed to the GPL on that code.

    Since the right to use a software program is not specified as a restriction in the Copyright Act, there's really no reason you need to buy a license from SCO to use the Linux code in question. And I'd suspect that their license will put restrictions on your modification and distribution of Linux. Which of course would conflict with the GPL. And they'd probably turn around and sue you for breaching their license. Sounds more risky to accept their license offer than to risk being sued for violating their copyright, for which their case is very weak.

    But there is some logic in what SCO is doing, trying to weave their way around the GPL.

  • by maxmo74 ( 597969 ) on Tuesday August 05, 2003 @05:00PM (#6619770)
    We tried to purchase the licenses we need for our offices. In order to we looked in their site anything about the possibility to buy them (online or with other methods). We didn't succeed so we posted a couple of questions to SCO online (that was possible, even if their site seems to be a little slow).

    One of the requests we made:

    Hello,

    We would like to purchase Linux licenses for our servers.
    We couldn't find a link on your home page. Is online payment possible?
    Can we keep using our RedHat linux installations in the meanwhile?

    Thank you.


    We are now waiting for a quick answer from them (their form [sco.com] said You will be hearing from us soon), and very very curious about their answer.
  • by SlashDread ( 38969 ) on Tuesday August 05, 2003 @05:19PM (#6620027)
    Capitalism means what the speaker intended to mean when he utters the word. Nothing more nothing less. I dont want to go into a semantics discussion if it wasnt crusial.
    Its like socialsm: Europens have a vastly different view on what socialism is than Americans. Americans predominantly see Socialsm as a central governement thing (where all is arranged in favour of some social belief), but Europeans belief it just means governing with a social face, and in fact the "less regulation" wing is the more dominant right now. So simply put Americans think "Ethics first" then money == Capitalism, whereas Europeans think "Money first" then maybe some law (but not ethics) == Capitalism.

    Well from my European POV it seems anyway... /Dread
  • Buy SCO (Score:4, Interesting)

    by Knaldgas ( 587891 ) on Tuesday August 05, 2003 @05:33PM (#6620174)
    LinuxCounter [li.org] estimates approx 18 million Linux users (=linux machines?).
    Whats the worth of SCO? $200 mill.?

    Let's put in $20 for each Linux we have, then:

    • buy SCO
    • license all their IP/code to GNU
    • and if we are in a real evil mood: dissolve the company.
    Let me see, I have 3 Linuxes running = $60
    SCO wants $699 per Linux = $2097
    I save $2037 and probably will get an even better Linux ;-)

    Perhaps it's time for the world to meet Open Capitalism

  • Re:Give em a call! (Score:3, Interesting)

    by chrisatslashdot ( 221127 ) <spamforchris@@@yahoo...com> on Tuesday August 05, 2003 @05:35PM (#6620194)
    I did. When I asked if it was true that I had to pay SCO $699 to run RedHat Linux the operator chuckeled and said 'Yes, sorry about that sir.' It was not a sarcastic laugh, she actually found the situation funny.
  • by Anonymous Coward on Tuesday August 05, 2003 @06:10PM (#6620557)
    So, as I understand it....

    1) Random Developer puts SCO code into Linux. Not me or anyone else I know who uses Linux. But a developer.

    2) Companies distribute Linux not knowing about SCO code (well, I assume they didn't know...)

    3) Members of the Public use Linux without a f*cking clue that they are using SCO's code. Not because they ignore licence agreements (a la many Win2K copies...), but because they don't know and can't read code.

    4) SCO sues users because it's their fault they're using unlicenced software. Of course it is, everyone can read code and pick out the juicy copyrighted bits!

    --- start stupidity here ---

    Yeah, I'm really gonna check 000's of lines of C++ code just to find the line "/* Copyright of SCO. SCO ownz j00 */" every time I buy obtain a new OS.

    Maybe Microsoft should learn from this and start embedding licence agreements in source code, after all no-one reads the damned things when they HAVE access to them :-)

    --- end stupidity ---
  • by Khyeron ( 670581 ) on Tuesday August 05, 2003 @06:51PM (#6620981) Journal
    Capitalism has NOTHING to do with FREEDOM. Capitalism deals with making money and that is that.
    Same goes with democracy, do recall a famous quote
    "The greatest tyranny of all is that of the ignorant majority."-Author Unknown

    -Khyeron
  • by dstone ( 191334 ) on Tuesday August 05, 2003 @08:00PM (#6621570) Homepage
    For those interested or those who couldn't get through on the phone today...

    I just called their toll-free number 1-800-726-8649, hit option 5 to speak to a representative. I explained that I may be interested in purchasing license(s) but needed clarification on their policy. Note that I don't currently own or operate any Linux systems that their license would apply to, but that I'm calling for some clarification of their policy.

    Anyways, they wanted my company name, my name, and a return phone number. A sales rep will call me back. When I asked how long it would take, I was told it probably would not be this week since they've been backlogged with so many calls. Their sales director wasn't prepared for this large of a response. So either sales are going to be great for SCO this quarter, or their staff is going to be talking to a lot of time-wasters, money-wasters, and tire-kickers.
  • by Anonymous Coward on Tuesday August 05, 2003 @08:26PM (#6621769)
    I can't shake this feeling that we are all being taken for a ride.

    Consider what has happened up till this point:
    - SCO is bought up by some investors
    - SCO makes some nebulous claim regarding intellectual property in linux
    - SCO opens up a lawsuit against IBM, a rather large and powerful company, demanding a ridiculous amount of money.
    - Upen receiving challenges from the public to show the offending code, they offer it only under an incredibly restrictive NDA, and even those who agree to it don't see any relevant infringement.
    - SCO begins hinting at licensing fees for linux users
    - Redhat sues SCO
    - SCO immediately countersues Redhat
    - SCO unveils an incredibly high priced license scheme with a time limit.

    From these events, a few things stand out:
    First, IMB's non-response to SCO. SCO is obviously looking for a fight, and yet IBM is completely ignoring them. Why?
    Second, SCO is playing hide-and-seek with the evidence, and playing NDA games which almost appear to be designed just to piss people off.
    Third, their ridiculous countersuit against RedHat.

    In my opinion, this countersuit was originally designed to be filed against IBM when they countersued SCO. IBM must have smelled a rat and so did not respond to their challenge. After their first volley failed, SCO then continued to heap on the insults to get SOMEBODY pissed off enough to sue them. In this case it happened to be Redhat.

    It would seem that somebody in a position of influence wants to get as many legal actions involving SCO as possible.

    We all know there's a scam afoot, but can you see past the sleight-of-hand?
    The magician performs his trick by controlling the viewer's eye.
  • by stock ( 129999 ) <stock@stokkie.net> on Tuesday August 05, 2003 @08:30PM (#6621798) Homepage
    FYI:

    Last year Caldera Inc. changed its Company name into a new Company name called "The SCO Group Inc." In 2000 Caldera Inc. publicly announced to donate their UNIX stuff into the Linux 2.4 kernel. That was just after Caldera Inc. had bought the orginal SCO Inc. company.

    bottom line : "The SCO Group Inc." today has no rights whatsoever to charge $699,= for a Linux License

    Robert

  • by cluckshot ( 658931 ) on Tuesday August 05, 2003 @10:38PM (#6622571)

    Sorry but Microsoft including their recent "Dividend" still fits this category probably better than any other company in history. They have "Made the most money" and paid literally NOTHING until this year in dividends. The largest company in America pays a dividend of 0.25% return on investment. Come on! Wake up this is stock fraud to the limit.

    So they make 8 Billion in profit but they don't pay it to their stockholders do they? This is prima facia evidence of what I am talking about but as usual people are not looking closely. They are just ignorantly going about squalking with all the intelligence of three rocks and one large brick.

    There is practically no company in America of any size which in any way resembles capitalism. At this time, most big companies are sucking down massive tax exemptions. Their facilities as with MS are paid for and built by the Taxpayers who they intend to defy at every turn. They will refuse any request that they pay this back. Just to set you streight, what I am talking about is called "Jobs" by your Congress critters and is called "Industrial Development" by your city or town or state and is nothing of the sort. It is Faschism or National Socialism Pure and simple. Doubt me? Try financing an operation with real investment money with you at risk. The bank will say NO!

    In the Case of MS everyone forgets a company set in business essentially by the US Department of Defense with massive help and "Deep Black" support who now ships all this tech off to our sworn enemy China in return for our generous support and assistance. China is openly planning Nuclear War with the USA and this is not an accusation, it is their word.

    No MS is the worst of the lot. They took the most and have paid back such a small amount that it is a bad joke. The fraud at MS is MILES DEEP. But the "Capitalists" at the stock market are all believers who are awaiting even bigger suckers to follow their bad investment with more money.

    In the case of MS those who chose "Appreciation" over Dividends will find that the "Profits" of $8 Billion are easy to report but when they have to be shelled out in cash, they will evaporate like Verga. It will never hit the ground. This is why Linux is a threat to MS. The top heavy structure is hollow to the core riddled with mechanisms where the big guys can take it all leaving the stockholders in the shorts. The organization is like a great oak fully hollowed out by termintes. When the wind blows it falls to splinters. It is already happening just watch.

    If MS is your idea of capitalism, hold tight it is going to be a bumpy night. (Just a Hint: I am a true capitalist who has run businesses for may years with my own money until they were essentially crushed by these "Tax Advantaged" companies given advantages under Industrial Development Boards)

  • What a Coincidence ! (Score:2, Interesting)

    by richg74 ( 650636 ) on Wednesday August 06, 2003 @12:43AM (#6623270) Homepage
    After October 15, SCO says they'll want $1399. Better buy now!

    So the price is going to go up in October. And it just so happens that the restrictions on the common stock that was given to the SCO directors expire on October 31. (Once the restrictions expire, they can sell it.) Here is the relevant paragraph from SCO's 10-Q filing with the SEC:

    During the six months ended April 30, 2003, the Company issued 218,000 shares of restricted stock to certain key employees and 150,000 shares of restricted common stock to members of the Company's board of directors. The restricted common stock issued to the board of directors was in lieu of cash compensation for their services to the Company during the 2003 fiscal year and the restrictions lapse at October 31, 2003. The restrictions on the restricted stock awards granted to key employees lapse over a period of 24 months. The fair value of the restricted stock awards granted of $549,000 was recorded as a component of deferred compensation and is amortized to stock-based compensation as the restrictions lapse or as the services are performed.

    Isn't it odd how these strange coincidences occur?

  • by MichaelCrawford ( 610140 ) on Wednesday August 06, 2003 @02:10AM (#6623563) Homepage Journal
    While the lawsuits being defended by IBM and filed by Red Hat are likely to put an end to The SCO Group's [sco.com] menace to the Free Software community, I don't think simply putting the company out of business is likely to prevent us from being threatened this way again by other companies who are enemies to our community. I feel we need to send a stronger message.

    If we all work together, we can put the executives [sco.com] of the SCO Group in prison where they belong.

    If you live in the U.S., please write a letter to your state Attorney General [naag.org]. If you live elsewhere, please write your national or provincial law enforcement authorities. Please ask that the SCO Group be prosecuted for criminal fraud and extortion.

    It makes me very sad to write this, because I lived in Santa Cruz for fifteen years. Sam Sjogren, a close friend from Caltech, was one of SCO's first programmers, and for a little while my only friend in town after I transferred to UCSC. Many of my best friends use to work for SCO either writing code or doing tech support. I even used to sit in the company hot tub with my friends who worked there from time to time.

    Before I ever used Linux, I was a happy user of a fully-licensed copy of SCO Open Desktop on my 386.

    You wouldn't think the SCO Group of today is the same company that once had to tell its employees that they shouldn't be naked at work between 9 and 5 because they scared the visiting suits from AT&T. That's because it's not - the SCO Group got its name and intellectual property from SCO through an acquisition. I don't think any of the friends I once knew at the company are likely to still be working there. The SCO Group is in Utah. SCO was originally called The Santa Cruz Operation, a small father-and son consulting firm named for a beautiful small town between the mountains and the ocean in central California. The Santa Cruz Operation was once as much a bunch of freethinking hippies as any Linux hacker of today.

    Yes, it makes me sad. But I digress.

    It seems that SCO is asking a license fee of $699 [slashdot.org] for each Linux installation. Take a look at SCO's press release [sco.com] announcing the licensing program. That's just the introductory price - if we don't purchase our licenses before October 15, the price will increase to $1399.

    I have three computers that run Linux. That means SCO claims I must pay $2097 today, or $4197 if I wait until after October 15. SCO says their fee applies even to devices running embedded linux, many of which were purchased by their owners for far less than SCO's "license fee".

    My response is that SCO is guilty of criminal fraud and extortion. I didn't violate SCO's copyright or acquire their trade secrets through any illegal means, and it is fraud for them to claim that I did. It is extortion for them to tell me I must pay them money to avoid a lawsuit.

    Rather than paying their fee, my response will be to write a letter to the Maine State Attorney General to ask that they prosecute SCO. I'm going to include substantive documentation, like a hardcopy of SCO's claim that I must pay them this fee, as well as IBM's and RedHat's responses to SCO.

    I'm also going to write to the Federal Trade Commission to ask that SCO be investigated for illegal trade practices.

    If you live in the United States, I ask you to write a similar letter to your state Attorney General, as well as to the Federal Trade Commission. If you live in a state where a Linux distro vendor is located, or a company that has a lot of Linux installations - doesn't Amazon use it? - write to your elected representatives to ask that they work with the state and fede

  • Well *BSD is safe (Score:2, Interesting)

    by bsdguy ( 512724 ) on Wednesday August 06, 2003 @03:25AM (#6623746) Homepage
    One thing that many folks that have come to Linux in the last 5 years may not be aware of is that AT&T about 10 years ago (around the time of the first releases of Linux) brought suit against the now defunct BSDI claiming that there was ATT code in BSD. BSDI spent lots of $$, on it and in the end it was found that AT&T had grabbed BSD code and stripped out the copyright notices. In the end the court said the BSD folks can't call their stuff Unix (thus we no longer talk about BSD Unix, only *BSD) and AT&T had to respect the BSD license and put the notices back in the code.

    So what does this have to do with the price of ice in Alaska? Glad you asked..... BSD development got very slow and many good developers that I know went over to doing Linux development durring the years of the suit, thus giving Linux a much needed boost. These folks did this because they did not want to lose their code to AT&T if BSDI lost the case. Since then the BSD family has not had the popular or press following that Linux has, but it has still grown to become the robust system it is today and the great thing is that SCO/Caldera can not move against the BSDs because the court already ruled against them (they bought what AT&T had). So while the new owners of Unix, like many recent Linux converts, have not learned from history and are doomed to repeat it the BSD groups do not have to go through it all over again!

    I sure hope that discovery in these trials shows that SCO is in violation of the GPL. Sure would love to see the FSF or some one get some damages on that one!

    -bsdguy

    --
    DRM is theft! We are the stakeholders! - http://www.nyfairuse.org/

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