Click here to close now.




















Welcome!

Open Source Cloud Authors: Daniel Khan, Liz McMillan, Elizabeth White, SmartBear Blog, Ruxit Blog

Related Topics: Weblogic, Linux Containers

Weblogic: Article

SCO - Linux' Worst Nightmare Is Back

Armed with the court's decision it's merely a matter of time before SCO starts seeking payments

Linux users might have to start reaching for their checkbooks again because SCO, Linux’ worst nightmare, is back.

The Utah court that decided a year ago that Novell, not SCO, owned Unix (SVRx) – although SCO was under the impression it had bought the operating system from Novell in 1995 – has now decided that SCO owns all right and title, free and clear, to UnixWare, which is merely a later model of Unix SVR4.

Novell, it said, has no interest in UnixWare; its ownership is limited to the old, outdated SVRx widgetry; and SCO has every right to license SVRx IP as a roll-up, incidental to UnixWare.

The court also said Novell couldn’t run interference for Linux and stop SCO from seeking royalty payments for alleged UnixWare and OpenServer infringement by Linux users under its infamous SCOsource licensing program.

Armed with that decision, it’s merely a matter of time before SCO starts seeking those payments.

It could start immediately or it could wait until it appeals the August 2007 summary judgment that said Novell owns the Unix copyrights – a legally flawed decision that is widely assumed will never withstand an appeals court’s scrutiny.

The only folks that are currently safe from SCO’s demands are Microsoft and OpenSolaris users and the 22 individuals and companies like CA and Kellogg that bought SCOsource licenses.

When this fracas started, Novell was seeking to put SCO out of business by claiming that SCO owed it something like $38 million that SCO didn’t have from the 2003 IP licenses it signed with Microsoft and Sun Microsystems and from the other royalties it collected from the truncated SCOsource program.

SCO was facing the prospect of Novell persuading the Utah court to slap a constructive trust on SCO and let Novell seize all its assets. That’s why SCO sought the protection of the bankruptcy court in Delaware even though it wasn’t bankrupt.

Now that specter has been removed and SCO’s written-off fortunes resuscitated.

In a 43-page decision handed down late Wednesday the Utah court found that SCO only owed Novell $2.5 million.

That’s a sum SCO could write Novell a check for now – if it wasn’t going to appeal Wednesday’s decision too.

It’s also a sum small enough to persuade SCO’s new Arab friends to go ahead and write that check for $100 million that they’ve been promising to invest in the company, money that will be used to press both SCO’s appeal and its suit against IBM and Linux.

If SCO wins its prospective appeal and makes progress in the IBM suit – (IBM may finally have met a budget that exceeds even its unlimited resources) – well, heaven help the Linux user.

Sun can also thank its lucky stars the court ruled the way it did because Novell had every intention of pressing any advantage it got in Utah to take out OpenSolaris, since it competes with Novell’s SUSE Linux and Linux in general.

As it stands, the court decided that SCO had the right to execute the UnixWare licenses with Sun, Microsoft and the SCOsource licensees, a fact Novell contested.

It decided that “Novell is not entitled to any of the revenue SCO received under the 2003 Microsoft Agreement,” which brought SCO $16,680,000, or to any of $1,156,110 it derived from the SCOsource program.

It did however find that SCO exceeded its rights in negotiating its $9,143,451 deal with Sun in 2003.

Seems Sun wanted to open source Solaris and went to SCO, then the recognized owner of Unix, to get the confidentiality provisions governing its 1994 Unix buy-out agreement in Novell lifted so it could open source Solaris.

The court found that under the 1995 Asset Purchase Agreement between Novell and the Santa Cruz Operation, SCO’s predecessor company, SCO should have brought Novell in on that part of the deal and it didn’t.

It said “SCO renegotiated a contract and expanded Sun’s rights to [SVRx] technology still owned by Novell. And, SCO improperly received the money for granting such right even though those rights remained with Novell.”

SCO in that part of the deal was guilty of breach of fiduciary duty, conversion and unjust enrichment.

The court however refused to void the contract saying it “could not return the parties to the same position they were in prior to the 2003 Agreement. Sun has already received the benefits of the agreement and developed and marketed a product based on those benefits. There was also evidence at trial that OpenSolaris directly competed with Novell’s interest. The court, therefore, cannot merely void the contract.”

But it could recompense Novell for the rights given to Sun to the tune of $2,547,817, a figure the judge derived after subtracting $1.5 million from the total value of the $9.1 million contract and declaring that $1.5 million strictly a release related to SCO IP and then arbitrarily carving off a third of the $7,643,451 left that was related to a UnixWare license, associated UnixWare and OpenServer drivers and the confidentiality release and awarding it to Novell.

He told Novell to come back in 15 days with a brief describing “what, if any, pre-judgment interest” Novell figured it was owed.

SCO released a statement expressing a certain amount of pleasure in the decision but said, “We continue to disagree with the premise of this trial and believe that Novell is not owed anything, but that they have interfered with SCO’s Unix rights.”

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

@ThingsExpo Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.