Well, who knew AutoZone & DaimlerChrysler were in SCO's bullseye? - Tilted Forum Project Discussion Community

billege · 03-03-2004, 10:10 AM

SCO in it's continuing move to make money without actually doing anything, has decided to sue AutoZone and DaimlerChrysler for using Linux.

The Bloomberg full text.

BTW, screw the Fark link, they make one register to view the article more than once.

Quote:

March 3 (Bloomberg) -- SCO Group Inc., which says it owns some of the code behind the increasingly popular Linux software, is suing DaimlerChrysler and AutoZone Inc. for using Linux, escalating a yearlong legal fight.

SCO Chief Executive Officer Darl McBride, who had targeted International Business Machines Corp. and software makers that sell Linux, on a conference call today said he's widened the battlefield to include companies that simply buy the programs.

He said Linux, touted as a low-cost alternative to Microsoft Corp.'s Windows, contains code stolen from SCO's Unix operating system and that Lindon, Utah-based SCO should get billions of dollars in royalties. SCO sued IBM last year for as much as $50 billion, and today McBride compared his company's case to the music industry's fight against illegal downloading of music from the Internet. That may be hard to prove, experts said.

``I don't know of any case in which an end user of mass- distributed software has been sued simply for obtaining or possessing it,'' said Jonathan Zittrain, an assistant professor at Harvard Law School in Cambridge, Massachusetts.

SCO also said its first-quarter loss widened on litigation costs and declining sales, sending the shares down.

Shares of SCO, which rose more than 10-fold last year, fell $1.56 to $11.86 at 11:54 a.m. in Nasdaq Stock Market composite trading and earlier declined to $11.65. AutoZone dropped $4.35 to $84.05 on the New York Stock Exchange. DaimlerChrysler fell 83 cents to $44.08.

Growing Interest

The DaimlerChrysler suit will be filed in Oakland County Circuit Court in Michigan, and the AutoZone suit was filed late yesterday in U.S. District Court in Nevada. They seek cash compensation and a court order blocking the use of SCO code.

IBM has denied SCO's claims and has filed a countersuit. Mike Aberlich, a spokesman for DaimlerChrysler, didn't immediately respond to an e-mail requesting comment. AutoZone CEO Steve Odland declined to comment on the claims.

``We've not seen the lawsuit and really therefore can't comment on it,'' Odland said in an interview. SCO has requested payments from ``hundreds'' of companies, he said. ``AutoZone is not unique.''

The suits come amid growing interest in Linux. Shipments of Linux-powered server computers, fast machines used to run Web sites, rose 53 percent in the fourth quarter -- more than double the rate of Windows servers, market researcher IDC said Friday.

Long Fight

McBride has tried since last year to convince companies that use Linux to purchases licenses. Google Inc., the most widely used Internet search engine, was among companies in discussions with SCO, McBride has said. Mountain View, California-based Google, which has 10,000 Linux servers, hasn't bought a license.

SCO has held talks with Memphis, Tennessee-based AutoZone about Linux since May, spokesman Blake Stowell said. DaimlerCrysler failed to ``respond appropriately'' to SCO's demands, McBride said on a conference call. He declined to elaborate.

The company also is involved in separate legal actions with Linux software makers Red Hat Inc. and Novell Inc.

``We have taken a significant next step in enforcing our contract rights,'' McBride said on the call. He said he also plans to target companies in Asia and Europe.

SCO said separately that its first-quarter net loss widened to $2.25 million, or 16 cents a share, from $724,000, or 6 cents, a year earlier. Sales fell 16 percent to $11.4 million in the period ended Jan. 31 from $13.5 million.

SCO said second-quarter sales will decline to $10 million to $14 million from $21.4 million a year earlier.

AutoZone, the largest U.S. auto-parts retailer, also reported results today, saying its second-quarter earnings rose 16 percent as sales increased.

(SCO began a conference call at 11 a.m. New York time to discuss the suit and the first-quarter results. Dial (1)(800) 818-5264 or (1)(913) 981-4910 to listen.)

I don't see how they plan on running a business based on suing people.

1) This type of activity, even if they're right, generates so much negative attention it's not worth it.

2) Even if they are right, there's obviously no way that the entire open source community is going to say, "Oh shit, someone did illegally use some code? Gee, we'll all stop using Linux right this moment."

Somehow, I don't see that happening.

3) Posession is 9/10ths of the law. There are millions? of Linux distros in use all over the world. Business/personall/whole server farms...these people all have legally aquired copies of software they depend on. The law will NOT find them liable for the code, even assuming that SCO is correct that parts of it are stolen. These users had no intent or desire to use stolen software. It's kida hard to do that with Linux anyway...so, there is no REASON AT ALL to fork $$ over to SCO.

4) This case is not winnable on it's face. Whoever at SCO is persuing it is hugely stupid. The only thing SCO has a shot at is proving IBM knowingly misused SCO code. If they could prove that, they have a solid case for some damages.

5) It's too bad SCO is waaay past the point of being reasonable. At this point they've lost all credability with the end user. SCO has joined RIAA in minds accross America as a sue happy bunch of assholes.

propaganda · 03-03-2004, 10:32 AM

Quote:

SCO has joined RIAA in the minds accross America as a sue happy bunch of assholes.

Thats funny and it is also true. They are just trying to jump onto the band wagon to see how much they can get off of it. Just one big waste of time in the end though...

sipsake · 03-03-2004, 10:43 AM

Interesting trend in business the RIAA and SCO are setting.

If your profits are suffering, sue your customers

I'm expecting a subpoena from Palm Inc. any day now since I haven't upgraded my Palm Pilot in almost 4 years.

JohnnyRoyale · 03-04-2004, 04:32 AM

I think it's interesting their suing non-tech companies first. Obviously an attempt to get these two to settle, since thier not that interested in the issue at hand, and then SCO can take those settlements as proof that their correct in their IP claims to other companies, such as IBM.

I just hope the EFF gets on AutoZone's & Dalmier's side, and drags SCO through a nice llong court battle.

Silvy · 03-04-2004, 05:38 AM

Quote:

Originally posted by JohnnyRoyale
I just hope the EFF gets on AutoZone's & Dalmier's side, and drags SCO through a nice llong court battle.

One warning though: Microsoft's pockets are deep, and they seem to be paying for this shit.

Edited twice for spelling <sigh>

JohnnyRoyale · 03-04-2004, 07:49 AM

Microsoft's paying? I thought it was paid via sco's stock being sold off every time it spiked from one of their press releases

Redjake · 03-04-2004, 08:46 AM

Didn't SCO go after linux or something a while back?

sailor · 03-04-2004, 11:02 AM

Quote:

Originally posted by Silvy
One warning though: Microsoft's pockets are deep, and they seem to be paying for this shit.

Edited twice for spelling <sigh>

So are IBM's. This could be interesting, but I get the feeling that SCO is going to get the almighty smackdown. The courts just gave them 45 days to produce all lines of code that they claim is infringing upon their copyright.

Die SCO, die!

Silvy · 03-04-2004, 11:14 AM

Quote:

Originally posted by Redjake
Didn't SCO go after linux or something a while back?

There is only one SCO issue, and yes, it's about Linux.
In short as best as I understand:
Central Case:
SCO bought license rights of Unix (System V?) from Novell many moons ago. Subsequently SCO (previously known as Caldera) licensed Unix code to IBM (and others). IBM has also put a great amount of time and effort into several Linux development efforts. SCO is now claiming that IBM put code from Unix, into Linux violating the license agreement.

Now additionally, SCO is claiming ownership of this infringing code, and therefore all copies of the Linux kernel is violating their IP (Intellectual Property) rights. This causes SCO to claim license fees from all users of Linux both corporate and private.

Conclusion: yes, they are demanding license fees for Linux users, and as of this week suing 2 companies that didn't comply. But the central point of their argument still neds to be proven in court and is only a license violation issue between SCO and IBM.

(this was meant as a fair and unbiased summary of the SCO/IBM/Linux issue)

03-03-2004, 10:43 AM	#3 (permalink)
sipsake Psycho Location: Memphis	Interesting trend in business the RIAA and SCO are setting. If your profits are suffering, sue your customers I'm expecting a subpoena from Palm Inc. any day now since I haven't upgraded my Palm Pilot in almost 4 years. __________________ When life hands you a lemon, say "Oh yeah, I like lemons. What else you got?" Henry Rollins

03-04-2004, 04:32 AM	#4 (permalink)
JohnnyRoyale Psycho Location: Boston, MAss., USA	I think it's interesting their suing non-tech companies first. Obviously an attempt to get these two to settle, since thier not that interested in the issue at hand, and then SCO can take those settlements as proof that their correct in their IP claims to other companies, such as IBM. I just hope the EFF gets on AutoZone's & Dalmier's side, and drags SCO through a nice llong court battle. __________________ I'm gonna be rich and famous, as soon I invent a device that lets you stab people in the face over the internet.

03-04-2004, 07:49 AM	#6 (permalink)
JohnnyRoyale Psycho Location: Boston, MAss., USA	Microsoft's paying? I thought it was paid via sco's stock being sold off every time it spiked from one of their press releases __________________ I'm gonna be rich and famous, as soon I invent a device that lets you stab people in the face over the internet.

03-04-2004, 08:46 AM	#7 (permalink)
Redjake I'm a family man - I run a family business. Location: Wilson, NC	Didn't SCO go after linux or something a while back? __________________ Off the record, on the q.t., and very hush-hush.