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Document shows SCO prepped lawsuit against BofA
c/net news.com ^ | March 4, 2004 | Stephen Shankland and Scott Ard

Posted on 03/04/2004 2:28:38 PM PST by cc2k

Document shows SCO prepped lawsuit against BofA

Last modified: March 4, 2004, 12:25 PM PST
By Stephen Shankland and Scott Ard
Staff Writer, CNET News.com

exclusive The SCO Group filed lawsuits this week against DaimlerChrysler and AutoZone, but the Unix seller's attorneys also had prepared a complaint against Bank of America, according to a document.

A Microsoft Word document of SCO's suit against DaimlerChrysler, seen by CNET News.com, originally identified Bank of America as the defendant instead of the automaker. This revision and others in the document can be seen through powerful but often forgotten features in Microsoft Word known as invisible electronic ink.

A feature in the word-processing software tracks changes to documents, who made those changes, and when they were made. These notations typically are invisible to someone reading a Word document. But as some lawyers, businesspeople and politicians have learned the hard way, Word can also display so-called metadata in the document--including the original version and all subsequent changes. This information is available by viewing the document under "original showing markup" or "final showing markup."

The presence of hidden text in the SCO document is just the latest example of this workplace issue. According to a study by market research firm Vanson Bourne titled "The Cost of Sharing," 90 percent of documents in circulation began as something else, but 57 percent of respondents were not aware that metadata may still exist in the their document. Microsoft addresses the issue on its Web site but adds that its 2003 version of Office provides a feature that lets users "permanently remove" the hidden text from Word.

In the case of SCO's lawsuit against DaimlerChrysler, the Word document identified Bank of America as a defendant until Feb. 18--at 11:10 a.m., to be exact. The location for filing the suit also was switched from Bank of America's principal operations in California to Michigan, DaimlerChrysler's home state, on Feb. 27.

According to the document, it is unclear whether SCO was serious about suing the bank, whether it still intends to, or why the bank was dropped and replaced with DaimlerChrysler.

But the hidden text indicates that SCO spent considerable time building a case against the bank and that it also considered extending allegations filed against IBM to Big Blue's high-profile customers--in this case, Bank of America.

Representatives of Bank of America and SCO, including SCO's attorneys, declined to comment on the document.

SCO has stirred up a hornet's nest of opposition within the open-source community by contending that Linux contains propriety source code owned by the company. Hackers have rendered SCO's Web site inaccessible for long periods. Picking apart the company's case and examining its motivations also has become a cottage industry on numerous Web blogs and Linux-related Web sites.

Corporate America has taken note as well, thanks largely to a warning letter that SCO sent last May to 1,500 of the world's largest companies, threatening that they could be legally liable for using Linux if they failed to obtain a license from the Utah-based company. SCO has also sued IBM, seeking damages of $5 billion.

What the invisible ink reveals

Examples of the changes made to the Word document that later became SCO's lawsuit against DaimlerChrysler include the following:

• On Feb. 18 at 11:10 a.m. "Bank of America, a National Banking Association" was removed as a defendant and "DaimlerChrysler Corp." was inserted.

• Three minutes later, this comment was removed: "Are there any special jurisdiction or venue requirements for a NA bank?"

• At the end of the lawsuit, "February" was listed as the filing date, although no exact date was given. SCO previously had said that it expected to file a lawsuit against a Linux user by mid-February.

The document contains other alterations in the margins. For example, on Feb. 13 at 2:27 p.m. a question was inserted asking: "Did BA receive one of the SCO letters sent to Fortune 1500?". That apparently was a reference to the warning letters sent earlier by SCO.

In its final form, SCO's suit against DaimlerChrysler was filed in Michigan's Oakland County Circuit Court and alleges violations of the automaker's Unix software agreement with SCO. In the original version that listed Bank of America as a defendant, the focus was copyright infringement and violations of the Digital Millennium Copyright Act, which would be the domain of the federal courts.

SCO also cited alleged copyright infringement in the suit it filed in federal court Tuesday against AutoZone, but it did not include violations of the DMCA.

In the original version identifying Bank of America as a defendant, the document also included these allegations against the bank and Linux developers, including leading Linux figure Linus Torvalds:

•  "Defendant acquired a license from IBM to use UNIX/AIX on or about December __, 2003 the ("BA UNIX/AIX License"). At the time of acquiring the BA UNIX/AIX License, Defendant knew or should have known: (a) that IBM’s license to distribute UNIX/AIX had been terminated by SCO pursuant to the UNIX/AIX Termination Notice and (b) that IBM’s distribution to it of UNIX/AIX software improperly included use of the UNIX Release 3.2 Copyrighted Materials"

• "(C)ertain of plaintiff's copyrighted software code has been materially or exactly copied by Linus Torvalds and/or others for inclusion into one or more distributions of Linux with the copyright management information intentionally removed."

In seeking relief from the courts, the original version of the document also said that it sought: "impounding all Linux software products in the custody or control of Defendant through the pendency of these proceedings;" and "statutory damages under the Third Cause of Action in a sum not less than $2,500 and not more than $25,000 for each and every copy and/or distribution of Linux made by Defendant."

This request was not made in the AutoZone or DaimlerChrysler suits.


TOPICS: Business/Economy; Technical
KEYWORDS: bankofamerica; daimlerchrysler; lawsuit; linux; sco
Just Damn!
1 posted on 03/04/2004 2:28:39 PM PST by cc2k
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To: rdb3; ShadowAce; Nick Danger; Bush2000; Golden Eagle
Pinging interested parties (and additional pingers).
2 posted on 03/04/2004 2:30:42 PM PST by cc2k
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To: cc2k
interesting!
3 posted on 03/04/2004 2:31:00 PM PST by dennisw (“The fear of the Lord is the beginning of knowledge: but fools despise wisdom and instruction.”)
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alternating waves of shyster madness wash over SCO...
4 posted on 03/04/2004 2:43:04 PM PST by D-fendr_2
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To: cc2k
Do I detect a smidgen of non-suicidal activity at SCO to not go for BoA with its legions of lawyers and fat pockets ($27B cash!) for defense? Or will they just hit BoA later?

5 posted on 03/04/2004 2:47:56 PM PST by antiRepublicrat
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To: D-fendr_2
> alternating waves of shyster madness wash over SCO...

And a generation of Americans is introduced to a strange
new word:

barratry

Who knows, the RICO statutes might actually get used for
their originally intended purposes.
6 posted on 03/04/2004 2:50:04 PM PST by Boundless
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To: antiRepublicrat
Bill Gates is worth more than 40 Billion. I am taking the SCO way to riches. I am taking my 35 dollar filing fee and SUING BILL GATES......

Maybe he will see it will cost him some money and settle......

Then when it is over I can live in a cardboard box....
7 posted on 03/04/2004 2:52:29 PM PST by Michael121 (An old soldier knows truth. Only a Dead Soldier knows peace.)
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To: cc2k
I've always been paranoid (in business negotiations) that my word docs had 'comment trails' impregnated in the doc, and available to savvy people on the other side. I have my methods of 'cleaning' the doc, but I was never confident that those methods worked for all purposes.

Now I see what happens to 'amateurs' --amazing!

8 posted on 03/04/2004 2:57:52 PM PST by WL-law
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To: cc2k
To add to earlier post -- this has got to be INCREDIBLY embarrassing to the SCO legal team. I said in a post yesterday, after listening to Heise on the conference call, that I thought that Darl was not very bright and Heise was not too much better. Now THIS confirms my intuitions -- this is pure AMATEUR HOUR occurring in big-time litigation.

I wonder how much else has been revealed to the IBM legal team in discovery docs, in this area of 'metadata'? Hmmmm...........

9 posted on 03/04/2004 3:03:35 PM PST by WL-law
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To: cc2k
If I read this correctly, they are not suing over Linux. They are suing over licenses of Unix that were issued by IBM AFTER SCO filed its lawsuit against IBM.

These lawsuits have zero/zip/nada to do with Linux/Open Source/Copyrights. They are about IBM issuing licenses to Unix after SCO says 'we cancel your right to do that' and IBM replies 'cancel this'.

Have i missed anything here?

10 posted on 03/04/2004 3:07:17 PM PST by DarthFuzball ("Life is full of little surprises." - Pandora)
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To: cc2k
My mental picture of Darl McBride is somebody who weighs 97 pounds soaking wet and wears taped-together hornrim glasses poking his head into a biker bar and making unwelcome comments about the parentage, body odor, and sexual orientation of the patrons.
11 posted on 03/04/2004 3:10:03 PM PST by steve-b
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To: WL-law
I see a future DMCA suit against C|Net for disclosing business secrets... ;-)
12 posted on 03/04/2004 3:26:02 PM PST by TechJunkYard
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To: steve-b
My mental picture of Darl McBride is somebody who weighs 97 pounds soaking wet...

Dude, you've gotta find a new fantasy. That's just not healthy.
13 posted on 03/04/2004 5:59:58 PM PST by Bush2000
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To: WL-law
I've always been paranoid (in business negotiations) that my word docs had 'comment trails' impregnated in the doc, and available to savvy people on the other side. I have my methods of 'cleaning' the doc, but I was never confident that those methods worked for all purposes.

This is one reason we always convert our Word documents to PDF files before delivering them to clients.

14 posted on 03/04/2004 6:27:58 PM PST by justlurking
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To: WL-law
I'm not so sure that it matters now. SCO has convinced a few sucker companies into paying their extortion money. It's only a matter of time before management at other companies will follow suit out of "Well, if others are doing it, they must have merit".
15 posted on 03/04/2004 8:37:07 PM PST by Dimensio (I gave you LIFE! I -- AAAAAAAAH!)
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To: justlurking
This is one reason we always convert our Word documents to PDF files before delivering them to clients.

Here's the problem with that approach -- there's a psychological reality to negotiations that one must manage, as well as the technical/practical reality. And the psychological reality is that encouraging collaboration and mutual trust improves the chances of success.

"Trust" in the world of teleconferencing sessions means exchanging word.doc files and permitting the other side to enter their redlines in show-edit mode.

Yes, it's risky, but it's done every day, and if one were to insist on PDF files only, it would suggest an unusual level of DISTRUST which would be counter-productive.

Therein is the dilemma, and it's very real.

Understand that I'm referring to business negotiations, not litigation-pending negotiations, where the illusion of 'trust' can be put aside.

16 posted on 03/05/2004 4:56:14 AM PST by WL-law
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To: DarthFuzball
If I read this correctly, they are not suing over Linux. They are suing over licenses of Unix that were issued by IBM AFTER SCO filed its lawsuit against IBM.

This is not a suit -- it is (because we can see their work product) a "contemplated" suit.

Funny that during SCO's teleconference on Tuesday, Darl told reporters that "if you did a word search and inserted another company's name for Daimler, you would see what our future suits will pretty much look like".

He was trying to say that this will be one generic 'type' of SCO action -- but he unintentionally said alot more about who is playing around with the word docs!

17 posted on 03/05/2004 5:01:02 AM PST by WL-law
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To: WL-law
My theory as TO why/how this happened -- SCO was desperately trying to meet their self-imposed filing deadline, which had already slipped a day -- ie, file BEFORE the scheduled teleconference -- and they rushed the docs out without 'scrubbing' them.

Shows how they are operating -- not very impressive.

18 posted on 03/05/2004 5:13:36 AM PST by WL-law
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