SCO vs. The Linux Market

The law suit SCO filed against IBM for its unlawful use of SCO-licensed code in Linux becomes more complicated to understand (or to make sense of) every day.  In recent developments:

Novell’s CEO wrote to SCO claiming that when Novell sold the rights to UNIX to SCO (actually to Caldera, but who’s counting), they did not also transfer the patents or copyrights to UNIX and that SCO obviously knows this because they’ve been trying to get Novell to transfer the copyrights for several months.  A key to understanding Novell's position may be that the new Novell is no longer strictly a Utah Valley native, but is run by Bostonians with a different point of view towards the firm's assets.

SCO held a press teleconference in which its CEO Daryl McBride claimed that (a) Novell doesn’t hold the patents and copyrights (b) its lawyers will deal with Novell’s lawyers about that and (c) its law suit with IBM (and others) is based on contractual agreements, so whether it actually holds the patents and copyrights isn’t relevant.  (Are you still following this?)

Once again, SCO offered to show some infringing (copied) code in the Linux kernel (this week), under NDA.  I’m not sure who could usefully choose to do this.  What’s the point of seeing purportedly copied code if you can’t say anything about it?  I would think the whole point would be for SCO to show it to a group of appropriate experts who would then say yes it’s copied or no it’s not.  Sounds like they’re avoiding that confrontation for now.

They have also been carefully avoiding answering any questions about what happens next.  But we’ve been asking around (IBM, the Linux and open Source community, some lawyer pals) and this is what we think is likely to happen:

  1. SCO and IBM will go to Federal Court in Utah.  IBM will ask for a change of venue to New York or Delaware.  They might get it.  Hard to predict.  In any case, this court date is mainly for the Federal Court to set schedules for the parties to take depositions and collect other information. 

  2. SCO might ask the Federal Court at this hearing for an injunction against IBM continuing to sell AIX without a license (because, they will claim, IBM is in breech of contract), but IBM will point out that they do not believe they are in breech of anything and how can someone be in breech of a perpetual contract anyway?  SCO is unlikely to get an injunction.  If they did, IBM would appeal it immediately and (our lawyer pals tell us) would be likely to win on appeal.   Likely outcome:  court says SCO will have to wait to get in front of the judge and/or jury.

     

  3. Much time passes, with continuing name calling, but not much else.  At any time, IBM or anyone else with about $30-50 million could buy SCO lock, stock, and barrel, give the UNIX code to the open source community, and be a hero.  If things get too painful, that might happen.  IBM has little or no incentive to do this as long as it can continue to sell AIX and customers continue to buy AIX and Linux.

     

  4. Eventually, there will be a day (many days) in court.  Half the open source community is likely to show up to testify against SCO.  Unless the idea of open source has been otherwise changed or tainted (not likely) between now and then, it’s going to be very hard to come up with sufficient cogent arguments for why Linux should somehow be disenfranchised because long after the fact one of Linux’s proponents decided that since it couldn’t succeed it should try to throw a wrench into the works.

The fact that Linux is managed by the public for anyone to use and can easily be changed should it infringe on SCO’s intellectual property (if it, in fact, has some) would clearly be an important issue.

  1. Of course, it’s possible that there really is infringing code in Linux.  In that case, we will eagerly await SCO’s proof that someone else, not SCO, is the cause of that infringement.

Stay tuned.  The fun has only just begun.  

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