SCO v IBM v ???

What happened?

• SCO sued IBM claiming that IBM illegally introduced code from AIX into Linux
• IBM eventually countersued claiming that SCO infringed IBM patents
• Red Hat sued SCO
  • Asked for a declaratory judgment [that] the SCO claims regarding copyright infringement are untrue.
  • Asked the court to hold SCO accountable for "unfair and deceptive actions."

What happened outside court?

• SCO sends 1500 "pay me" letters
  • License fees to use Linux as Unix
• Some source code reviewed and not clear some came from a Unix book.
• SCO open letter to the Linux community
  • With rebuttal from Raymond, Torvalds et al
• Raymond creates tool to compare source trees
• HP indemnifies its Unix users

Bottom line

• SCO claims 10s of thousands or more lines of code infringe
• No smoking gun, no proof, only allegations.
• What code has been released was refuted by Bruce Perens.

What makes this so complex?

• Existing software business model is based upon notion of proprietary
  • Know and well established model
• New model: open source and resulting licensing (ASF, GPL, and others)
• The intersection causes tension
• SCO started as a Xenix vendor
  • Purchased by Caldera a Linux vendor
  • Chain of custody of the IP is muddy

What are the issues?

• Chicken and egg: who really owns what?
• The fundamental question in this type of case (Intellectual Property)
  • The person bringing the claim actually owns the intellectual property
• Chain of ownership isn't clear
  • Some of it involves open-source licenses related to the IP

What are the issues?

• Multiple points of view
  • SCO says IBM did it, IBM denies and
• Eric Raymond co-authored an OSI position paper on the suit
  • Covers the background
  • Eric has a long history with Unix -- apparently longer than anyone currently at SCO
  • Also delves into Linux & advent of open-source
  • Goes point by point through the SCO filing

What if SCO prevails?

• Who has liability?
  • Is it the hardware vendors?
  • The Linux software vendors?
  • Coders? Users?
  • Would companies (individuals) have to know that they were infringing to be liable?
• This is a copyright case
  • The lesson of George Harrison...

Is the suit ridiculous?

• Take any infringement suit seriously.
  • Guarantee you, IBM does?
  • HP and Sun would not have indemnified users
• The problem: SCO hasn't shown proof
  • Conclusive proof
• If SCO prevails, they could (theoretically) get an injunction to stop use of Linux

What is the suit really about?

• Money!!!
• Caldera failed; SCO failed
• Caldera bought SCO, changed the company name and is attempting to use the only real asset they own (and that isn't clear) to generate money
• Either suit or buy-out
• Industry growing pains!

Presented to the PASUG, September 25, 2003, by David Moskowitz