Red Hat Takes Aim at Infringement Claims; Complaint launched against SCO

Business Wire ^ | August 4, 2003 | unsigned

[Nick Danger]

Red Hat Takes Aim at Infringement Claims; Complaint launched against SCO claims, Red Hat pledges $1MM to create fund to protect Linux

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 4, 2003--Red Hat (Nasdaq: RHAT) today made two significant announcements to protect Red Hat Linux customers and the worldwide Linux industry. First, Red Hat announced that it filed a formal complaint against The SCO Group, Inc. (Nasdaq: SCOX, "SCO"). The purpose of this complaint is to demonstrate that Red Hat's technologies do not infringe any intellectual property of SCO and to hold SCO accountable for its unfair and deceptive actions.

"We filed this complaint to stop SCO from making unsubstantiated and untrue public statements attacking Red Hat Linux and the integrity of the Open Source software development process," said Mark Webbink, General Counsel at Red Hat. "Red Hat is confident that its current and future customers will continue to realize the significant value that our Red Hat Linux platform provides without interruption."

To further protect the integrity of Open Source software and the Open Source community, Red Hat has established the Open Source Now Fund. The purpose of the fund will be to cover legal expenses associated with infringement claims brought against companies developing software under the GPL license and non-profit organizations supporting the efforts of companies developing software under a GPL license. Red Hat has pledged one million dollars to be provided as funding in this initiative.

The collaborative process of Open Source software development which created the Linux operating system has been unjustly questioned and threatened," said Matthew Szulik, Chairman and CEO of Red Hat. "In its role as industry leader, Red Hat has a responsibility to ensure the legal rights of users are protected."

[Liberal Classic]

More grist for the mill.

[kevkrom]

How long until the usual suspects come in and make unfounded complaints against IBM, RedHat, and Linux in general based on nothing other than vague accusations made by SCO that SCO refuses to substatiate?

[Lost Highway]

Let the games begin.

[Only1choice____Freedom]

The Boys have been busy.

Maybe this will put a stop the the ramblings at SCO.

Are you ready to sell short SCO?

[Ernest_at_the_Beach]

Thanks for posting the article!

OFFICIAL BUMP(TOPIC)LIST

[shadowman99]

SCO Group (NASDAQ SC:SCOX) down 1.70

[Nick Danger]

Maybe this will put a stop the the ramblings at SCO.

Probably not. On the other hand, it's only Monday. I don't think this is going to be a good week for SCO.

Down $1.85 now.

[eno_]

It ain't gonna be a good eternity for SCO.

Linux isn't like tobacco or asbestos. Their lawyers will break their pick on this one.

[Only1choice____Freedom]

Everybody's down.
My TIVO is down $1.10 - that is most painful

[Nick Danger]

just in Red Hat escalated the legal war over Linux on Monday by announcing it has filed suit against the SCO Group.

The legal strategy, announced on the first day of LinuxWorld Conference and Expo taking place in San Francisco, will likely be welcomed by the open-source community. Lindon, Utah-based SCO asserts that some of the underlying code in Linux was unlawfully copied from Unix, the decades-old operating system to which SCO claims some intellectual property rights.

-snip-

"We filed this complaint to stop SCO from making unsubstantiated and untrue public statements attacking Red Hat Linux and the integrity of the open-source software development process," Mark Webbink, Red Hat's general counsel, said in a prepared statement. "Red Hat is confident that its current and future customers will continue to realize the significant value that our Red Hat Linux platform provides without interruption."

Red Hat filed the complaint in the U.S. District Court of Delaware. Additional details were not immediately available.

[dennisw]

It's about time. Didn't you post yesterday that a Linux friendly party would do well to take this course of action? To sue SCO for creating (in so many words)unwaranted FUD and harming Red Hat's business?

[Nick Danger]

More dribbles in...

The seven-count suit seeks, among other things, a declaratory judgment that Red Hat has not violated SCO's copyrights or trade secrets, Red Hat CEO Matthew Szulik said at a news conference here on Monday.

"We have asked the courts to declare no violation of intellectual property and trade secrets have occurred," Szulik said. "We've been patient, we've listened, but when our customers and the whole open-source community are threatened with innuendo and rumor, it's time to act."

Red Hat also is seeking a preliminary injunction barring SCO from continuing its assertions that Red Hat's Linux violates SCO's intellectual property.

The suit also seeks to require SCO to triple the financial damages caused to Red Hat "for harm caused by SCO's unfair competition and false advertising...unfair and deceptive (trade) practices...as well as for violations of common law, including trade libel, unfair competition and tortious interference with prospective economic advantage," the suit said.

[shadowman99]

Build your own tivo. I love mine!

[Nick Danger]

Red Hat Complaint (1.3 MB pdf file)

[Golden Eagle]

Very interesting, indeed. Yes, SCO's stock fell, but so did Red Hats...

Why is Red Hat requesting their customers donate money to pay for the defense? If I was a paying Red Hat customer, I would much prefer a promise that I was protected from any lawsuit, not a plate stuck in my face asking for more money.

Also, how does Red Hat even know if there is actually stolen code or not? They haven't yet signed the NDA to see SCO's evidence, something I might recommend before filing a suit on some sort of 'hunch'.

Here's an article that just appeared on Forbes:

http://www.forbes.com/2003/08/04/cz_dl_0804linux.html?partner=yahoo&referrer=

"So now he has gone to court asking a judge to declare that his product does not infringe on SCO's intellectual property. It's a bit like asking a judge to declare that you didn't rob a bank, even before the police have charged you with a crime. "They've gone to our customers and business partners numerous times and have said publicly that Linux is infringing. We want the truth. We want them to stop engaging in unfair business practices. Basically what we're saying is put up or shut up," Szulik says. "

So I guess Red Hat is only hoping SCO isn't right, since they aren't really disputing it, just asking that the proof be revealed. If it turns out to be valid, this will actually only have dug Red Hat's hole even deeper for themselves. Oh wait, that's right, they wanted their customers to donate to pay for this.

My recommendation - save that money in case you are required to give it to SCO later, or, buy Unix instead, and leave this Linux mess behind.

[TechJunkYard]

Why is Red Hat requesting their customers donate money to pay for the defense?

Spreading dis-information again, are you?

RH has established the fund and salted it with $1M. They're "hoping" for donations (and they'll get some) but they're not asking customers to chip in.

I'm a customer, and a RHCE, and I haven't been asked for anything.

[Golden Eagle]

Dis-information? They are asking for donations, whether you have gotten your letter yet or not.

To further protect the integrity of Open Source software and the Open Source community, Red Hat has established the Open Source Now Fund. The purpose of the fund will be to cover legal expenses associated with infringement claims brought against companies developing software under the GPL license and non-profit organizations supporting the efforts of companies developing software under a GPL license.

Interesting name, the "open source now" fund. Why not call it what it is, the "red hat linux" fund? But the reason they want donations is because they're far from sure they're going to win. To quote the Red Hat CEO (from the Forbes link above):

"Our customers are being threatened by this vague innuendo and unsubstantiated rumors...They've gone to our customers and business partners numerous times and have said publicly that Linux is infringing. We want the truth. We want them to stop engaging in unfair business practices. Basically what we're saying is put up or shut up"

So this is far from Red Hat knowing they will win. Unfortunately as a Red Hat customer, you could end up paying three times for your Linux: once when you bought it, again when they ask for donations to fight the suit, and even a third time potentially, if SCO wins all the suits and comes looking for their money.

[TechJunkYard]

You're pretty good at reading stuff that isn't there.

As usual.

[Golden Eagle]

You're pretty good at reading stuff that isn't there. As usual.

Like what? All I did was repost comments from articles linked above. As usual.