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SCO Sets Price For Linux Licenses Aug. 5, 2003
Information Week ^ | 8/5/03 | Larry Greenmeier

Posted on 08/05/2003 2:44:19 PM PDT by MineralMan

The SCO Group Inc. moved forward Tuesday with its plans to offer Linux users protection against a lawsuit by making available a license that gives them the rights to run the open-source operating system. The company is offering a SCO Intellectual Property License for Linux that permits the use of Linux without violating SCO Group's copyrighted Unix System V source code. SCO Group claims this code and derivative Unix code have been used without its permission to develop the Linux 2.4 and 2.5 kernels. Each run-time-only license will cost a one-time fee of $699 for a single-CPU system until Oct. 15. After that, the price of the license will jump to $1,399.

"What's at stake here are intellectual-property rights," SCO Group president and CEO Darl McBride said at a press conference. Linux has to this point been used according to a "don't ask, don't tell" model, he said. "We're absolutely, 100% going to protect our intellectual-property rights, which we've spent hundreds of millions of dollars to buy and further develop," he said.

SCO Group hasn't defined pricing for systems using more than a single processor. If Linux users don't sign up for the new license, SCO Group has the ability to pursue individual users, McBride says, although he adds that the whole purpose of the licensing program is to avoid lawsuits.

SCO Group's contention is that it needs to collect fees from users for its intellectual property because vendors such as IBM and Red Hat Inc. don't indemnify their customers against intellectual-property infringements contained in the Linux kernel. "There's a shell game going on here about legal Linux liability," McBride said. "The rock is showing up under the shell of the end user. Vendors have shifted liability to their customers. IBM and Red Hat have painted a Linux liability target on the backs of their customers."

The SCO IP License for Linux announcement comes one day after Red Hat filed a formal complaint against SCO Group in U.S. District Court in Delaware. Red Hat is looking for a "declaratory judgment that Red Hat Linux does not infringe any copyright owned by SCO and does not utilize any trade secret owned by SCO." Red Hat is also seeking damages as well as injunctive relief, attorneys' fees, and costs for harm caused by "SCO's unfair competition and false advertising."

Red Hat on Monday also established a $1 million Open Source Now Fund, which will be used to cover the legal expenses associated with infringement claims brought against companies developing software under the General Public License and nonprofit organizations supporting the efforts of companies developing software under a GPL.

Red Hat's suit against SCO Group shows that the company is very serious about preserving its market, says Melise Blakeslee, a partner with law firm McDermott, Will, & Emery. "Red Hat is trying to reassure its customers that the accusations aren't true and that they're not going to sit idly by while IBM and SCO are tangled up in court."

Red Hat's suit also serves a practical purpose, Blakeslee says. Red Hat all along has said it's willing to examine SCO Group's evidence, while SCO Group has claimed it has offered Red Hat the opportunity to view the evidence under a nondisclosure agreement. This lawsuit will bring such bickering to an end by forcing SCO Group to "show their cards," she says.

McBride says his company is not at fault for any business Red Hat has lost since SCO Group in March filed its lawsuit against IBM and introduced the idea of Linux intellectual-property licenses. What's more telling is Red Hat's "faulty business model," he said. "Red Hat distributes under the GPL and has no power to prevent infringing code."

In response to Red Hat's suit, SCO Group says it can file a motion to dismiss or to file counterclaims against Red Hat. Either way, the company doesn't expect the suit will be settled before the start of its lawsuit against IBM, which is scheduled to begin April 11, 2005.

SCO Group claims it had pursued discussions for a global resolution to its intellectual-property problems, but the company won't say which companies were involved in those talks. Now that the process has broken down, McBride says, "It's time to march forward with our legal claims."


TOPICS: Business/Economy; News/Current Events
KEYWORDS: linux; sco; unix
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Holdup!
1 posted on 08/05/2003 2:44:20 PM PDT by MineralMan
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To: MineralMan
Do they expect an individual end-user to pay them $700 for linux?
2 posted on 08/05/2003 2:46:58 PM PDT by Petronski (I'm not always cranky.)
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To: MineralMan
Holdup!

Yeah, but they're pointing a squirt gun.

3 posted on 08/05/2003 2:47:57 PM PDT by Right Wing Professor
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To: MineralMan
They'll get my kernel when they pry it from my cold dead hard drive.

There's no way I'm going to pay for something that developers the world over created for FREE. I'm using Suse right now, but I'm beginning to think it's time for me to go back to Redhat 7.3, or even dig up Caldera 2.4. It doesn't like my soundcard, but I don't like being swindled, so I guess that makes it even. :(

4 posted on 08/05/2003 2:50:02 PM PDT by dandelion
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To: Petronski
Do they expect an individual end-user to pay them $700 for linux?

One time or annually?

5 posted on 08/05/2003 2:51:28 PM PDT by Paleo Conservative (Do not remove this tag under penalty of law.)
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To: Petronski
"Do they expect an individual end-user to pay them $700 for linux?"

That's what it sounds like, but I don't know for sure. I posted it even though I don't use LINUX. It seemed an important story.
6 posted on 08/05/2003 2:52:23 PM PDT by MineralMan (godless atheist)
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To: dandelion
freebsd, the unix of champions.
7 posted on 08/05/2003 2:53:39 PM PDT by Munson
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To: MineralMan
What a racket. If you don't pay up a big dude named Guido will be by later to adjust your kneecaps.
8 posted on 08/05/2003 2:53:55 PM PDT by Liberal Classic (Quemadmoeum gladis nemeinum occidit, occidentis telum est.)
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To: MineralMan
The entire SCO/Linux episode has managed to do something I never thought possible. It has two primary beneficiaries - Microsoft and Sun.

The Microsoft connection is obvious, because Linux has become the only sort-of-threat to Windows. But Sun is far more threatened by Linux than Microsoft is. Their main source of income is servers with proprietary Unix on them, and that market is the one in which Linux is strongest.

Notice that as a result, you haven't heard much out of Sun about this. I think they're just fine with the fear and doubt concerning Linux that SCO is causing.
9 posted on 08/05/2003 2:54:25 PM PDT by Joe Bonforte
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To: MineralMan
"We're absolutely, 100% going to protect our intellectual-property rights, which we've spent hundreds of millions of dollars to buy and further develop," he said.

No way did they spend hundreds of millions of dollars. Anyone got the scoop on this?

 

10 posted on 08/05/2003 2:56:15 PM PDT by dennisw (G_d is at war with Amalek for all generations)
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To: MineralMan
Once SCO shows its cards any infringing code (if any )will be removed within weeks. Then this sleaze of lawyers can go back to chasing ambulances and threatening to sue small businesses for violating some regulation.
11 posted on 08/05/2003 2:58:56 PM PDT by Rifleman
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To: MineralMan
$700 - Typical UNIX highway robbery.
12 posted on 08/05/2003 2:59:12 PM PDT by PatrioticAmerican (Helping Mexicans invade America is TREASON!)
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To: Right Wing Professor
I just counted up, and I figure I owe them $26,562. Hmm, pay this bargain price, or wait until it jumps to $53,162 in the fall? Decisions, decisions...
13 posted on 08/05/2003 2:59:28 PM PDT by Right Wing Professor
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To: Munson
I may take you up on that. I like to play with code, but I'm not good at it. So, you know what happened if never hear from me again...

Honestly, my husband nearly had a heart attack when I killed Windows. It took me forever to learn how to program Linux

BUT

I was able to learn all the commands, just like the old DOS programs. I like that, and I want to be able to turn off spyware and dial-outs at will. Windows won't let me, and they charge me for the privilege of getting hacked. I still have a Windows 98 partition, but it's disconnected from the net entirely, and all networking is done through Linux.

How long do you think it'll be before they try this with BSD?

14 posted on 08/05/2003 3:00:58 PM PDT by dandelion
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To: Munson
I may take you up on that. I like to play with code, but I'm not good at it. So, you know what happened if never hear from me again...

Honestly, my husband nearly had a heart attack when I killed Windows. It took me forever to learn how to program Linux

BUT

I was able to learn all the commands, just like the old DOS programs. I like that, and I want to be able to turn off spyware and dial-outs at will. Windows won't let me, and they charge me for the privilege of getting hacked. I still have a Windows 98 partition, but it's disconnected from the net entirely, and all networking is done through Linux.

How long do you think it'll be before they try this with BSD?

15 posted on 08/05/2003 3:00:59 PM PDT by dandelion
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To: dennisw
Not unless the transactions were the "two $5000 cats for that $10000 dog" kind of trade.

16 posted on 08/05/2003 3:01:09 PM PDT by Rifleman
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To: dandelion
Dangit! Why is Opera double-tapping???
17 posted on 08/05/2003 3:01:39 PM PDT by dandelion
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To: MineralMan
They belong in jail
18 posted on 08/05/2003 3:01:57 PM PDT by Sub-Driver
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To: Sub-Driver
"They belong in jail
"

Hmmm....that's unlikely. This resembles the RIAA stuff with music downloading to me. I wonder where the Bush administration sits on issues like this one. I suspect they're going to side with SCO and RIAA on these things.

19 posted on 08/05/2003 3:03:31 PM PDT by MineralMan (godless atheist)
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To: MineralMan
We are witnessing SCO's death spasms. They are running on fumes and they know it.
20 posted on 08/05/2003 3:03:43 PM PDT by flashbunny
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