Posted on 07/21/2004 1:05:39 PM PDT by TechJunkYard
| Eyewitness Reports from the DC Hearing - SCO Trounced |
| Wednesday, July 21 2004 @ 12:23 PM EDT |
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I have just heard from two readers who did attend the DC hearing. The eyewitness accounts are subject to later clarification, simply because neither is a lawyer and that can lead to missing certain details, as they disclaim in the reports. But with that disclaimer, this is what they say happened. I know we all wish to thank them both for attending the hearing, so we can get a fast report.
What they are telling me is that DaimlerChrysler's motion for summary disposition was granted in all particulars except one, which is whether they replied fast enough or should have done so within 30 days. What that means is SCO's action against DC is over in all meaningful senses. I can't believe they will wish to spend the money to litigate over something so trivial with no conceivable damages or useful relief, even if they were to prevail, and I doubt they could anyhow. Still, this is SCO, so we will have to wait and see. But the most significant thing is, they can't do discovery the way they seemed to hope to be able to do. How much discovery do you need to do about being 30 days late? The bottom line is they were, by both accounts, trounced and trounced good. So you can get the full flavor of the day, here are both reports. REPORT 1, from eggplant37:
Well, like a wolf at a corpse, Judge Chabot has eviscerated SCO's case against Daimler. Here's my narrative of what happened in court: I arrived at 0800 to the courtroom and found that SCO v DC was 18th on the motion callsheet, nearly close to the end of the session, as there were only 22 cases to be heard this morning. . . . DC's lawyers were rather jovial during the checkin period prior to court being called into session, and SCO's attorneys looked rather concerned but cool about it. Mark Heise reminded me of Superman actor Chris Reeves in appearance. Ryan Tibbits reminded me of a big, blocky Marine drill instructor as to his appearance.
The courtroom didn't open up until 0820 and I watched the various attorneys, both from the SCO v DC case and several other cases being heard this morning, as they checked in. At 0841, the clerk called the SCO v DC attorneys up for a brief discussion, during which I was able to overhear the clerk tell them that he would "like to get [them] in and out." At 0850, the clerk came over to the SCO side of the bench and spoke briefly with them, telling them "five minutes", I think stating the amount of time that each side would be granted for arguments. DC's attorneys came over and confirmed with the SCO attorneys what the clerk had to say.
Court was called to session at 0905. Judge Chabot is a petite woman with a very short, close-cropped hairdo, and looked determined and no-nonsense in her affect. Judge Chabot heard and ruled on a motion in the first case heard in less than 30 seconds, which seemed to surprise both attorneys in that case. One attorney in that first case jokingly commented that she hoped that this ruling would set precedence in how speedily cases would be heard this morning, which was met with laughter throughout the courtroom.
Second case was heard at 0906, third case at 0917, fourth case at 0921, fifth case at 0931, 6th case at 0940 and 7th case at 0942, so this shows that Judge Chabot is one speedy lady who doesn't muck about while running her courtroom.
SCO v DC was called at 0942. Barry Rosenbaum arguing for SCOand James Feeny arguing for Daimler, and motions were heard to admit Heise and Steven Prout?? pro hac vice for SCO, and also to admit Mark Mastuchak from Massachussetts pro hac vice for Daimler, which the Judge granted.
First, DC's lawyer argued Daimler's summary dispo motion, noting from the outset that this was a more technical case, dealing with software and licensing agreements, and that he would frame the case briefly, in about 30 seconds. Chrysler says that the case is about whether or not section 2.05 of the SA requires a certification of compliance with detailed enumeration of extraneous facts outside the agreeement, or whether it simply requires a brief certification that licensee has complied with the terms of the license agreement. Mr. Rosenbaum then went on to recite the language of Section 2.05. He stated that the letter requesting the certification from SCO went quite far outside the unambiguous language in section 2.05 when it asked to enumerate information regarding DC's use of Linux. Daimler didn't file the certification until after SCO filed it's lawsuit, which on its face appeared to be about the contract provisions being breached due to DC not giving SCO their compliance certification in a timely fashion. Mr. Rosenbaum then went on to recite paragraphs 2 & 3 of DC's response letter, stating that there were *no* cpu's running SCO's software, that not providing a list of cpu's that weren't in existence and hadn't been used in more than 7 years was more than sufficient to comply with the language of 2.05. Since the language of 2.05 is unambiguous, there is sufficient grounds to grant summary judgement on all assertions in SCO's complaint. Mr. Rosenbaum's presentation was clear-cut and concise, and he finished by stating that the original letter didn't request a list of CPU's running SCO's software. Since there were no CPU's running SCO's products, DC felt it was immaterial as to whether or not they responded within 30 days. At 0951, Mark Heise then argued the SCO side of the case. He asserted that he would be brief, which surprisingly enough he was. He felt that DC's SA gave them full access to the source code, the crown jewels if you will, and that DC had been given the right to use, modify and create derivatives for their own internal use, and that the SA required that they keep the software confidential, that it should not be exported outside the US -- which in this case seems to be a concern since Chrysler's recent merger with Daimler Benz of Germany. He also used his favorite tagline about the concepts, methods, etc that they are looking to protect in this case.
As Mr. Heise argued, Judge Chabot was looking less than impressed and certainly not entertained by SCO's argument. Heise went on to argue the point that DC's answer to the request for certification was not timely nor was it adequate in that SCO has fears that the source code still lives on disk on some computer somewhere at DC and they are entitled to know where it's stored. He also stated that DC is not alleviated from the terms of the SA once they have decided to take the CD's or tapes or whatever of the source code and toss them in a closet somewhere, and that they needed full certification that the software had been held in confidence by DC.
He went on to recite the terms of section 6.02 of the SA, stating that Chrysler, upon ceasing use of the software, was bound to either destroy all copies or return the software and to notify SCO that they did same. Again, he expressed his concern that in DC's use of the Linux software they were worried that they may be allowing SCO's methods and concepts out into the Linux community. He concluded that the fact that the client has not used the software in 7 years there is still no out from the original contract terms. He finalized that they would like to know, again, which CPU's that the source code is stored on, seeming not to believe that since decommissioning SCO's products, the software isn't loaded *anywhere* on DC's equipment.
At 0959, Mr. Rosenbaum was given another minute to answer SCO's arguments, and broadly stated, "Your Honor, this is a fishing expedition." In the original complaint, there was no claim that DC had exported the software or disclosed it to anyone outside the company, that the case is about DC's breach of section 2.05 of the SA. The language of the 2.05 section has nothing about a certification that DC kept the software confidential, at which point the judge looked rather amused.
At 1000 Judge Chabot issued her orders:
Summary disposition is granted except on the matter of breach of section 2.05, in that DC did not submit their response in a timely manner. All other claims were dismissed and she acknowledged that the contract doesn't require certifications that are outside the language of the contract. . . . At this point, the court session was concluded and the judge left the room. I headed toward the door and proceeded to congratulate the DC attorneys. The SCO attorneys all looked rather discomfitted by the Judge's rulings, realizing that she just gutted their case. I could almost hear the screaming all the way from Utah.
So, there it is. I'm hoisting a beer in celebration as I write this. Congratulations again to Daimler Chrysler and their attorneys for very successfully trouncing this case, whittling it down to the only possible claim that SCO could have -- that DC should have answered up more quickly.
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REPORT 2:
As far as I can determine, the DC's request for summary disposition has been granted. The only remaining issue is whether 30 days is an adequate time to respond.
Now take it from me with a pinch of salt, because I have never been in a court and don't understand legalese too well. Before the judge came in, the clerk told the parties that they had 5 minutes each to plead the case. DC went on first. DC stuck to the facts. Never mentioned Linux.
SCO was up second. SCO went beyond the boundaries of the case, just as in the filed doucments, about "just specifying a list of CPU is not enough" , "what if the was exported to Germany for e.g., since Daimler is German" "even if it isn't used, but sitting on a server somewhere, who knows what will happen", "what if they used the source code and made derivative works out of it", "what if they contributed to Linux?" , "DC has to certify all these issues we are raising now.". So they went on like this for a while on topics that aren't supposedly covered in section 2.05 or the agreement. DC did a brief rebuttal, mainly about the fact that it's about 2.05, and that all the arguments that SCO is putting forth have nothing to do with 2.05, DC also mentioned to the court that SCO was on a fishing expedition by bringing up all the other issues.
Then the judge ruled without further questioning. Apparenly, she had done her homework and read up about it and made up her mind, and none of the morning's arguments changed her mind. She had a prepared ruling and read from it, That's why I couldn't get it all inside my head, she read it too fast. But I seem to hear that except for the 30 day limit specified by SCO, DC's motion for summary disposition was granted, effectively throwing out SCO's case. I seem to hear that SCO could litigate whether 30 days was adequate or not. As for the other contract issues not covered by 2.05, the judge says, well, it is not part of this case. I will have to wait for the official ruling transcripts to be absolutely sure about what I heard.
Four attorneys from DC were there, and four from SCO. Heise was there. There was another attorney who came in separately and introduced herself to the entire DC team, but sat apart and did not partake in the arguments or in the other cases for the day. I suspect that she might be from IBM or Novell or Redhat.
I had the impression that Judge Chabot was a no-nonsense type that did not suffer fools too well. I got this impression from the other cases that she was ruling this same day before this SCO case -- she was pretty sharp to the lawyers. But on the SCO case itself, she did not need to cut off any of the attorneys on either side.
Neither side brought up the other cases, IBM, Novell, or Redhat. Linux got mentioned only by SCO in a contrived way during SCO's arguments.
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bush2000 and goldeneagle are deeply, deeply saddened.
LOL. and they didn't even bring up meta code.
What is SCO?
This really was a stupid case. SCO just had to sue somebody for something. At least the lawyers are happy about the billable hours.
Now they'll probably want to appeal. That'll make the lawyers even happier.
Do a FR search on SCO and you'll find many older articles which should provide you a good history of this saga.
A mill for baseless lawsuits masquerading as a software company that would have been out of business by now had it not been funded directly and indirectly by Microsoft to attack its opponents.
Thanks very much for the ping!
SCO needs to win one of these Courtroom Bouts before too much longer....
Thanks to you and antiRepublicrat for filling me in.
> What is SCO?
What used to be Santa Cruz Operation, who released one of
the first Unix versions for Intel x86 processors. The
current enterprise has almost nothing to do with the
former, and The SCO Group (their actual name) seems to
have as its principal business, running an IP Protection
Racket over Unix. It's far from clear that they even OWN
any significant rights in Unix.
See http://www.groklaw.net/ for the blow-by-blow.
BWAAAAAAHAHAHAHAHHAHAA.
Poor SCO. </sarcasm>
I love the smell of burning astroturf in the morning.
"The judge granted [DaimlerChrysler's] motion for summary judgment except for the claim that [the company] delayed responding to [SCO's] request for certification of compliance," said a spokesman for Judge Rae Lee Chabot.
SCO filed the lawsuit in March in the Circuit Court for the County of Oakland, Mich., claiming that DaimlerChrysler had refused to provide a "certification of compliance" indicating that it was in compliance with a Unix licensing agreement from November 1990. At the same time, SCO filed a separate lawsuit against auto parts retailer AutoZone Inc. (see story).
"We are pleased with the judge's ruling, and we look forward to finally resolving the one open issue," Mary Gauthier, a DaimlerChrysler spokeswoman, said today after the decision was handed down.
SCO spokesman Blake Stowell said that the company is reviewing its legal options based on the judge's decision.
"Apart from that, we're really not commenting on what our next steps are in the case," he said.
Stowell said the lawsuit against DaimlerChrysler could have been avoided had the automaker responded to SCO's request for a compliance certification within the allotted 30 days. "It's a little unfortunate that it took a lawsuit for them to respond to what was a real simple letter asking them to certify," he said. "We wish they would have just certified with the first request that came in to begin with."
When it filed the two lawsuits in March, SCO said it was kicking off an offensive against companies using Linux in their businesses. SCO opened its ongoing legal fight in March 2003, when it sued IBM for allegedly contributing some of SCO's System V Unix code to the Linux open-source project illegally. SCO is now seeking at least $5 billion in damages from IBM, which has countersued in that fight.
In April, DaimlerChrysler filed court documents arguing it had filed the necessary compliance certification -- even though it did not feel it was required to do so because it had not used the software for more than seven years.
In court filings dated April 15, the automaker argued that it had "provided SCO with the only certification required under the license demonstrating that DaimlerChrysler is not even using and has not used the licensed software for more than seven years." The filings referred to two letters dated April 6 that were sent by DaimlerChrysler to Bill Broderick, Lindon, Utah-based SCO's director of software licensing.
One of those letters, written by Norman Powell, DaimlerChrysler's senior manager of technology services, and addressed to Unix System Laboratories Inc. in Summit, N.J., certified that DaimlerChrysler was no longer using the software licensed under a 1990 agreement between Chrysler Motors Corp. and Unix System Laboratories.
The second letter, written by DaimlerChrysler Senior Vice President and CIO Susan Unger and addressed to Broderick, said that SCO had no right to seek such a certification and that the first letter "should cause SCO to dismiss its suit."
The judge threw out all of SCO's claims except the question of whether the auto manufacturer should have responded to SCO's request within 30 days, and whether SCO suffered any damages from the delay. DaimlerChrysler didn't respond until after SCO had filed its lawsuit.
It is unclear what SCO's next move will be or whether that remaining issue will go to trial.
"I think the judge just sort of saw through what SCO was doing, particularly its public comments around copyright violations, and I think she took the prudent course here," said Dion Cornett, an analyst at Chicago-based Decatur Jones Equity Partners LLC. "SCO hasn't provided any evidence out there to convince IT managers that Linux violates its intellectual property rights."
I was wondering what their spin on this would be. They're hoping that people won't forget the other 90% of their suit that they just lost, which was that DC misappropriated UNIX "methods, code, and the ASCII character set it was typed in" and put it into Linux. They wanted to go fishing through DC's entire IT infrastructure. If they only cared about certification, they would have dropped this as soon as they got the reply.
However, with even this snippet of the suit getting through I'm a little worried. That means that if you've ever in your life licensed software, then the owner of that software has a sword hanging over your head forever. Should Unisys be able to require certification from a company that used a Burroughs mainframe in the 1960s? Should Borland be able to go after a company that licensed dBASE and Multi-Mate in the 1980s?
Correction, I just remembered that Borland transferred dBASE to another company set up to handle the dBASE IP.
There are 50,000 lawyers out of work. Don't give 'em any ideas.
"What is SCO?"
SCO used to be a computer company, but is now just a rotting carcasse waiting for disposal.
That sounds about right. I believe another question could have been "Who the hell is SCOG and why are they requesting certification IAW a license we had with AT&T?"
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