Novell Files for Summary Judgment Against SCO 112
rm69990 writes "Novell filed a motion with Judge Dale Kimball asking him to grant summary judgment or a preliminary injunction on Novell's claims that SCO wrongfully retained the money it received from Microsoft and Sun for their SVRX licensing and sublicensing agreements. Novell indicated over a year ago, when they initially filed their counterclaims against SCO, that they were planning on asking Judge Kimball to force SCO to turn over these monies. However, Novell only recently received the actual licensing agreements between SCO, Sun and Microsoft through discovery, despite demanding copies of them as early as 2003, and thus was unable to determine that SCO had breached the APA until now, which is why this motion is being filed so late in the case. This motion will likely bankrupt SCO if granted."
Its about time (Score:2, Informative)
Why do I get that funny feeling that SCO is screwed?
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Are they screwed? That is not a good question because they were screwed when the first filed suit.
Seriously, even if SCO wins, a verdict to that effect will not come around for perhaps 5-10 years. SCO thinks that they will then rake in a ton of money on their licensing. Like anyone would even use their Unix code by the time this is all said and done. I'm sorry but they killed their own company when the started all the lawsuits. They were so scared of Linux that they thought they needed to fig
Don't be sorry. (Score:3, Insightful)
Don't be sorry. This was never about SCO's business interests.
... and when that wasn't working, it became a pump-and-dump scam so SCO executives could sell off their stock options at a profit (finally).
This was an attempt to spread fear about Linux
Darl and friends all got what they wanted. Their business associates got a little more tarnish on their reputations. But Darl and friends walk away with $millions$.
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Re:Don't be sorry. (Score:5, Insightful)
No. If you look at the timeline, it began as an attempt to extort money from IBM. Caldera was dead (apparently they never figured out that nobody would buy a Linux distro that used per-seat licensing) so they hired Darl McBride to sue IBM for "something", in an attempt to get a buyout.
When IBM called their bluff, Caldera (now SCOX) began their media slams against them. This was when the stock pumping began (presumably, the stock pumping was done in an effort to encourage IBM to buy them sooner, rather than later.) At this time, they were publically stating that Linux was "clean", and it was just IBM who was at fault.
Around April 2003, MS threw $60M at them (this is the money that they owe Novell) for "licenses" that MS already had, and wasn't even using. It was at this point that SCOX changed their tune and started the whole "millions of lines of code was dumped into Linux", their threats to sue Linux end-users, and their $699 "license". (The inference is that MS saw an opportunity to spread FUD, and that's what the money was for. The timing is just too good
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Personally I think it was a scam from day one. To use a twisted metaphor - Darl deliberately drove the SCO car into the brick wall that is IBM and took it to his brothers panel shop to get fixed. The big name lawyers were only there for guest appearances - his brother is raking in a fair bit of the cash. I think it was set up to fail from day one - SCO is the victim of Darl here and the linux l
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If bankruptcy ensues, with out being able to make full restitution to novell, fraud and trading whilst technically insolvent, will become a real issue. The only hope for Darl might be information about microsoft that could be legally usefull to either IBM or Novell (interesting tim
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I disagree. This has always been about the money, and threatening linux was just a means to that end.
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Of course, asking for one and getting it are two entirely different beasts.
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I suppose if worst comes to worst then they could always go after Microsoft et al who have Unix licences that Novell have not been paid for.
SCO is between a rock and a hard place (Score:5, Informative)
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Completely wrong. This has nothing to do whether the APA is valid or not. It *is* valid. Novell isn't contesting that at all. If both parties to a contract say that the contract is valid, then it's valid, end of story.
Re:SCO is between a rock and a hard place (Score:4, Insightful)
Indeed, it is SCO that wants to pick and choose which terms to accept. If the Judge does rule that they have to pay then it is game over for SCO.
Nonparty to Contract Challenging Validity (Score:3, Insightful)
That isn't always true. A third-party beneficiary (or someone else with a special relationship, like an assignee) can challenge the validity of a contract on grounds of, e.g., illusion, illegality, or impossibility, even though the contractors assert its validity.
Example:
Quality Vendor sells products to Happy Customer.
EVIL VENDOR: (holding a gun to Quality Vendor's head) Agree to sell me the Happy Customer business
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Actually, no ... if it turns out that SCO was in breech, then they didn't have the right to sell a unix license to Sun for $8m. So Sun has an invalid license ... but they can always sue SCO (and SCO's directors) for damages.
In a year it'll probably be easier to list the big-name players who AREN'T suing SCO (or at least have filed a claim against their bankruptcy).
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Sun's Solaris is based on BSD
Not the current version. Sun's original flavour of Unix was based on BSD, but for Sun OS 5 they based it on SVR4 from AT&T. A few bits of the last BSD based version were ported across (hence the /usr/ucb directory). The SVR4 version was called Solaris, but in a typical Sun marketing exercise they later renamed the last BSD version Solaris 1 and the current SVR4 version Solaris 2.
Re: Solaris 1 (Score:2)
Incorrect about Solaris. (Score:2, Informative)
The current versions of Solaris have nothing to do with BSD; that was SunOS 4.
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You might want to re-check your facts.
Last time I checked, SunOS 4.1.x was BSD-based, and when Solaris 2.x was released, it
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Unless I'm mistaken, Solaris 8 contains at minimum the csh/tcsh, which is BSD licensed. While the advertising clause was removed in 1999, you still have to give credit to author in the docs. Unless ( AT&T | Novell | SCO | Sun ) had recreated all UCB/BSD code (userland or kernel), they would have to still have the credits in the manual.
BWP
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True, and that's why the documentation says portions of the code may be derived from code belonging to UCSD. That doesn't make the underlying operating system BSD-like th
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Because Windows Vista was not ready yet
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Finally!!
Jailtime for Darl (Score:2, Interesting)
I think option 4, the senior execs attempted to defraud stockholders in a pump and dump, fraudulently attempted to obtain money from autozone and dailmer and launched into damaging media tirades that were damaging to linux. Does anyone see this differently?
Re:Jailtime? No... Darl for President! (Score:1)
This could be it. (Score:5, Informative)
So, Judge K. issues a summary judgement saying that SCO has to give Novell 25 million dollars right now. That bankrupts SCO. That doesn't stop the court cases though. The bankruptcy trustee appointed by the court replaces SCO's management. The bankruptcy trustee then negotiates with the creditors (mostly Novell and IBM). All the cases are settled out of court. My WAG is that the out of court agreements include SCO (as directed by the trustee) admitting that they are wrong about all the cases and all the counterclaims.
The counterclaim we all care about the most is IBM's counterclaim number 10. That's the one that says that there is no copyrighted Unix code in Linux. That will be the end of that particular piece of FUD.
My fondest wish is that Darl goes to jail for Lanham act violations or for something the SEC charges him with.
Well, not quite (Score:1, Interesting)
In the 2.0.36 kernel tree there is a file in the net section where the ppl admit they took it from FreeBSD and then removed the BSD copyright.
And the ATA code came from BSD/no it did flap a few years ago.
So not everyone's hands are clean in the Linux kernel in the past.
There is a likelyhood of shared code, but is 3 lines 'infringement'? 1 line? 30? 3000? 300,000?
It would be best that there is no code. But being able to be shown w
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time, to build their case, and/or waiting to see what the outcome of the civil processes are.
IANAL, and I specifically don't know if there are any statutes-of-limitation that would affect
the SEC, but it wouldn't surprise me if the SEC did indeed step in suddenly with some major
complaints that the USDOJ would then have to prosecute. I certainly hope that they do nail
McBride and the others, and nail them hard.
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MY fondest wish is that Darl gets to share a cell with "Bubba"...
If it's granted, what happens to the IBM case? (Score:2)
Does anybody know what happens with the SCO vs IBM case, if this motion is granted and SCO is bankrupted before the IBM case goes to trial?
I'd love to see a big SCO-shaped crater, but we've been following that case for so long, I want to see how it ends.
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Re:If it's granted, what happens to the IBM case? (Score:5, Interesting)
Re:If it's granted, what happens to the IBM case? (Score:4, Informative)
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If you're talking about the motion for an injunction, they're not intended as any sort of final resolution, but are just a way to prevent one or more sides from suffering harm while an issue is settled. A judge generally won't grant an injunction that will destroy a company before they get their day in court, as tha
There are two separate requests. (Score:2, Informative)
Anyway, the t
mod AC parent up! (Score:2)
volcano (Score:2)
I'd love to see a big SCO-shaped crater, but we've been following that case for so long, I want to see how it ends.
How about seeing a caldera? Here's Rabaul Caldera [mtu.edu], Papua New Guinea.
FalconToo Bad It Won't Go (Score:5, Interesting)
In a case like this, though, where the facts and evidence are sure to be the crux of matters, there is no way the judge will grant it, which is unfortunate.
Re:Too Bad It Won't Go (Score:4, Insightful)
Well, the motion isn't for the entire case, just one small specific sub-part of it - that SCO owes Novell those royalties. It seems to me (and I'm clueless about law except for following these things on Groklaw) that that point may be uncontroversial enough to grant the point.
Of course, SCO will get to file a defence first, but it seems it's pretty hard to give arguments at all - they did receive the royalties, the contract does say that a large part of those go to Novell, and they haven't paid yet. Those are facts. Perhaps they'll be able to make the issue seem slightly controversial, but that won't be easy.
Not merely "a large part"... ALL of the royalties (Score:2, Insightful)
What a Motion for Summary Judgment Is (Score:3, Informative)
Business implications? (Score:2, Insightful)
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Re:Business implications? (Score:5, Funny)
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Fujitsu do a lot of integration work, which means they may have installed SCO Unix at MacDonalds in the first place. Changing the registers isn't really a good indicator that they're changing OS.
On a related note, I was amazed to the Blockbuster Video chain still using DEC VT420 terminals a couple of years back. I wonder if their backend was still running on VMS ...
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What do people normally do when their OSes are no longer going to be officially supported? They switch. All of the other reasons for staying with it are irrelevant. Obsolete OSes are not a good idea, especially not from a security standpoint. I doubt there are many that would argue with that assessment.
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First of all, I personally know off-hand of five or six firms and small businesses who are still using UnixWare or OpenServer for their everyday operations. The stupidest thing for them to do would be to move away from these OSes. Why is that? Because their systems are working just fine. Their staff are trained to use the systems, and the systems themselves are stable and perform the functions that they should.
Well, no. The number of people who have ever used (let alone who still remember) SCO is tiny n
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So use some other OS's support for running System V binaries. Linux or NetBSD, for example. In fact, didn't SCO sue AutoZone for switching to Linux and running their Unixware apps under binary compatibility? AutoZone actually did recompile most of their apps instead of running them using binary compatibility,
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They'll probably have to pony up the millions of dollars to practically rewrite their central processing software from scratch. (Maybe this time they won't use COBOL.) They won't be happy. It will happen over the course of years, since what they have
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The best parts of the original unix are in the BSDs. The other best parts have been reproduced in GNU/Linux. The *real* goodies were actually developed by IBM, HP and others, and they are already releasing cod
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And then there's the very interesting question wether SCO/Caldera had the underlying copyrights to begin with (they clearly own their own code of course).
From the Novell-SCO Asset Purchase Agreement:
1.1 Purchase of Assets (a) ends with: "Notwithstanding the fore
Initially, there is no impact. (Score:5, Insightful)
Their systems will be running the same software on Judgement +1 as they were on Judgement -1. So their immediate situation shouldn't be any different.
Also, if their management has any clue what-so-ever, they've already explored the costs/options involved in migrating.
The best case scenario for them would be for IBM to win EVERYTHING including sufficient cash awards that SCO would be unable to pay them (this is looking very possible if Novell gets their judgement). Then IBM could take the SCO business as partial payment (under the same terms with Novell as SCO had) and I'm sure that IBM would offer very inexpensive migration services to get everyone to Linux or AIX or something else.
This would be great PR for IBM's Linux drive. SCO attacked IBM/Linux and SCO was completely destroyed as a company and then IBM still took care of SCO's old customers (far better than SCO did with their lawsuits).
You cannot buy PR like that.
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What I want to see happen though, is for all of SCO's records to be turned over to Novell. I esp. want to see the records WRT MS and Sun's support of SCO. It would be interesting to find out how nefarious
Slight problem with that reasoning (Score:2)
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Not much too different from companies who based their IT systems on other OS's that went defunct(BeOS, Amiga, MPE, VMS, IRIX, DG/UX, OSF/Tru64, etc).
They migrate their systems over to Windows instead.
Re:Business implications? (Score:4, Funny)
The assets of the bankrupt company belong to the creditors - that would in the majority be IBM so, in effect IBM would be able to use these assets to realise any monies owed.
In light of the fact that some of the potential 'assets' of SCO would have included the costs awarded to them IF they had won the case, IBM could now withdraw their request for summary judgement and pursue the claim(s) formerly alleged by SCO.
Now, since IBM is also a defendent in the case, they could ADMIT the claims in the original SCO lawsuit and pay themselves nominal damages BUT also now have the case proven and so open the floodgates for them to pursue Red Hat, Mandriva, Ubuntu, Slackware developers etc. etc. and each and every corporate and private Linux user.
The result would be that IBM becomes the most evil force in the empire, Microsoft becomes the people's friend, Bill Gates is made a saint and everyone starts installing GND/HURD (but can't explain why), the world's economic infrastructure implodes and the only way to do any serious computing is to submit a batched application via teleprinter to your local University who had the forsesight to store their old VAX 11/750 in 1987 'just in case'.
L3K
PS : IANALAMTUFCE
(I am not a lawyer and made this up for comic effect)
creditor (Score:2)
The assets of the bankrupt company belong to the creditors - that would in the majority be IBM so, in effect IBM would be able to use these assets to realise any monies owed.
The major creditor would actually be Novell because the license revenues SCO didn't pay to Novell.
FalconRe: (Score:2)
References to 'IBM' will be replaced with 'Novell' as part of a patch kit to be released next Tuesday.
Changelog
=========
Bug #0001: Replace 'IBM' with 'Novell'
Bug #0002: Replace 'GND/HURD' with 'GNU/HURD' before RMS finds out and has a hissy fit
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Ya... but that's no fun. Novell already owns it!
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Once the corpse is picked clean, someone will wind up with the rights to SCO's dusty old Unixes so support would probably continue to be offered by other parties until those companies eventually migrate to an OS that's still being developed.
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If you mean the companies that were dumb/scared enough to pay for the privilage of using SCO Unix, I imagine the companies would have grounds to sue for their licence fees back since they were pruchased based on the idea SCO owned the rights to something they didn't.
But that would assume they can. I wouldn't be surprised if there's some clause in the license that says by purchasing this license you are agreeing t
the Baystar connection .. (Score:5, Interesting)
"Microsoft stopped returning my phone calls and emails, and to the best of my knowledge, Mr. Emerson was fired from Microsoft"
http://www.groklaw.net/article.php?story=20060929
'Bout Damn Time (Score:2, Interesting)
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economic terrorist (Score:2)
I think I will file a motion to have Darl McBride declared an economic terrorist and taken away to Gitmo!
I'll second that motion.
FalconFinish Him! (Score:2)
Oh, sorry, wrong thread.
Hang on a sec... maybe not.
Looks like Novell and IBM are going for the finishing blow. And if IBM are true to form, this will be very, very slow and very, very public.
My regret is that the scum who participated in this little pump-and-dump will get to hang on to the money they made.
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If SCO really did conceal $25-odd million dollars of SysV royalties from Novell three years ago *and* failed to properly disclose this material fact in their SEC filings and statements to investors, Mr McBride might want to find a Monopoly set and hang on to that "Get out of jail free" card.
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APA (Score:2)
The top Google results for "define:APA" are
American Psychological Association
Association of Police Authorities
A professional trade association comprised of both publicly and privately employed planners.
or jala - water [from Ayurvedic medicine)
Auxiliary Personnel Attack
the Engineered Wood Association, formally[sic] known as the American Plywood Association
Army pre-positioned afloat
Satisfying, but not...? (Score:2)
Seeing SCOX(E) bankrupt after claiming I owe them thousands of dollars for running Linux-based OS's on a couple machines will be satisfying. But I wonder if it has a little tinge of missing the point, like convicting a murderous gangster for tax evasion? Are there any legal declarations we'd still like to see come out of these procedings, that might be short-circuited by pre-trial SCOX(E) death? Any of their claims that not surviving to the end of the
No. (Score:2)
I'm refering of course to the attempt to convince everyone to pay them $699 per workstation (costing me $2100 for a laptop and two workstations if I was silly enough to pay it), and I believe it was like $1299 or so per server, for using almost any version of Linux. They also attempt to claim that software "Methods and Concepts" somehow NOT embodied in code are yet still breaches of protectable IP they can sue over. They also claim
Time running out in IBM case, too (Score:2)
Here's the SCO vs IBM case schedule. [groklaw.net] Note how many key steps are now complete and in the past. Discovery is over. Expert reports are over. The final deadline for expert discovery passed last week. No more surprises. No more "secret evidence". No more stalling. We're past that. All the evidence is on the table now. The process grinds slowly, but it does grind.
Now the process speeds up. There's a significant deadline every few weeks now. Right now, summary judgement motions are being briefed and decid
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1 won't release the code
2 are currently unavailible (being at an undisclosed location or noncorpeal atm)
3 can't release the code (due to court order)
besides what do you think Linux is? hint ( between oh K&R C and the Lions book you can build a SysV type system without using the code (unless required by the M&C))
SCO is so dead (Score:2)
Caldera (the new SCO, what we now know as SCO) was once a great company (opened up DR Dos, off
I don't see how anyone left there.... (Score:2)
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Just food for thought. Or perhaps even more silly would be that all of those (especially Digital Research!) ended up being owned by Microsoft instead?
The baddie rises again... and again (Score:2)
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If anyone is accepting money for something they didn't really sell, it's SCO and their "linux license".
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Santa Cruz gave Novell stock-options. They didn't actually pay them anything.
The agreement was that if SCO became an agent for Novell's Unix SysV licensing business, they could completely take over the Unixware business, while only paying Novell limited royalties on Unixware. Santa Cruz was fully aware that certain assets were excluded, espesially considering the SVRX royalties were listed under the header "Excluded Assets". In-fact, because Santa Cruz couldn
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Hey, You're a poet and you don't know it but I'll bet your feet do because they're Long Fellows.