Bonum Certa Men Certa

Daniel Wallace Explains Why He Challenged the GPL (Copyleft) in Court



Richard Stallman
Richard Stallman's last interview as FSF president



Summary: Almost 15 years ago Daniel Wallace alleged that copyleft (or GPL specifically) was problematic and contravened federal antitrust laws; he lost the case and now he explains to us why he pursued that misguided litigation campaign

OVER the past few days we've been studying the GPL challenge that was widely discussed a decade and a half ago after Daniel Wallace, about 60 at the time, had alleged that it was an antitrust violation. He even took it to court. As Wikipedia put it:



Wallace v. International Business Machines Corp., 467 F.3d 1104 (7th Cir. 2006), was a significant case in the development of free software. The case decided, at the Court of Appeals for the Seventh Circuit, that in United States law the GNU General Public License (GPL) did not contravene federal antitrust laws.

Daniel Wallace, a United States citizen, sued the Free Software Foundation (FSF) for price fixing. In a later lawsuit, he unsuccessfully sued IBM, Novell, and Red Hat. Wallace claimed that free Linux prevented him from making a profit from selling his own operating system.


We found the current contact details of Mr. Wallace and Ryan, who comes from the same state where Wallace resides, did eventually call him. That was yesterday. "He said it was long in the past and that he was planning to develop a product based on BSD," Ryan reported. "He wouldn't go further than that. He just said he's 74 now and it's long in the past. He chose not to proceed because he was representing himself pro se and that it would have bankrupted him had he continued to appeal."

When we started exploring this we wondered aloud who might have funded or 'bankrolled' the lawsuit.

"When we started exploring this we wondered aloud who might have funded or 'bankrolled' the lawsuit.""He said it was just his opinion that the GPL doesn't "hold water" legally," Ryan continued, "and that giving software away and charging for services prevents others from making competitive products."

Did Microsoft have anything to do with this (like the SCO lawsuit)? "Doesn't pass the "sniff test" for Microsoft," Ryan said, "I think it's just someone who wanted to knock over copyleft because they had some idea for a product that couldn't compete. He seemed to not like Red Hat very much. He said that it was dishonest to give the software out for free and charge for services. The court kept saying that he failed to articulate an antitrust argument. They let him amend his complaint 4 times before they threw it out."

Groklaw wrote a lot about it at the time. Sadly, some Groklaw pages are no longer accessible.

"Groklaw wrote a lot about it at the time. Sadly, some Groklaw pages are no longer accessible.""He seemed to be under the impression that the GPL requires software to be free of charge," Ryan said. "It doesn't. It just makes it hard to sell because someone could take the same source code and come up with a different version. He said he got hit with huge costs for the legal costs incurred by FSF and the three companies (IBM, RH, Novell)."

"Although," Ryan continued, "he accidentally contributed something to the GPL. Instead of knocking it down, he gave us case law that it provides direct benefits to the market, as decided by the trial judge, and a three judge panel voting unanimously at the Seventh Circuit appeals court. Which can be cited if someone else is ever hit with antitrust complaints regarding a Free Software License. I'd say that Daniel Wallace's demeanor was more shocked that someone wanted to talk to him and evasive, but definitely kind of blindsided that someone would poke around at that after 15 years."

It's never too late to start pursuing answers and clarify.

"He said he was looking into some product based on BSD but wouldn't elaborate," Ryan summarised. "I mean, there are small tech companies in the Indianapolis area, so it's certainly possible that he wanted to make a server offering or a network product, where FreeBSD was competitive with Linux at the time, mostly."

"In reality, what Microsoft is doing -- licence-wise -- is far closer to a violation of antitrust law.""He has very strong opinions that the GPL is illegal under copyright law. He kept saying things like "I couldn't attack it using copyright law, so I went after it with antitrust law."."

As Wikipedia put it: "On May 16, 2006, Judge Richard L. Young dismissed the case with prejudice: "Wallace has had two chances to amend his complaint [...]. His continuing failure to state an antitrust claim indicates that the complaint has "inherent internal flaws." [...] Wallace will not be granted further leave to file an amended complaint because the court finds that such amendment would be futile.""

In reality, what Microsoft is doing -- licence-wise -- is far closer to a violation of antitrust law. IBM, Novell, and Red Hat collaborating in the open, or sharing code, isn't anywhere as problematic as what Microsoft does.

“No less than Bill Gates himself said in a recent Fortune article that Microsoft competes better against Linux in China when there's piracy than when there isn't.

“So, Microsoft actively looks the other way as people pirate its software. It builds its market share that way, and lets people get used to the idea of having Windows at a certain price.”

--ECT

Recent Techrights' Posts

Links 03/02/2026: "Distraction is a Sin" and Fake "Encryption" (Surveillance With Good Marketing)
Links for the day
 
Red Hat (Under IBM) Works for Microsoft (Proprietary Software) and Slop
Yesterday Red Hat's official site, redhat.com, published exactly 5 new blog posts
IBM is Dying (More Layoffs), Red Hat Will Continue to Suffer From the Acquisition
Financial engineering
Colombia Adopting GNU/Linux Even Faster (at Microsoft's and Apple's Expense)
Do politics play any role in this?
An Effort to Tackle Slavery in 'Open Source' Clothing
"a civil rights lawsuit to examine the concerns of censored developers in the free, open source software ecosystem"
$15 billion lawsuit: Ubuntu, Google & Debian crowdfunding campaign launch
Reprinted with permission from Daniel Pocock
The Solicitors Regulation Authority (SRA) Delusion - Part II - Why We Need to Expose the SRA to More Daylight, Public Scrutiny
SRA is neither effective nor regulated
400-Page US Federal Court Against Abuses by Google, Microsoft and Front Groups That Abuse Volunteers for American Corporations
There are 386 pages in total (in the US claim)
Corporate Influence Never Impacted Us
There's no reason to assume we'll ever "sell out"
Growth of GNU/Linux in Cuba
Right now a lot of the world drafts or already implements a GAFAM exit plan
A Day After EPO Strikes an Escalation to Heads of Delegations to the Administrative Council
They rely on the European media playing along, helping them to hide major blunders, even crimes
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, February 02, 2026
IRC logs for Monday, February 02, 2026
Gemini Links 03/02/2026: Stargazing, Development Boards, and Tcl/Tk Slop
Links for the day
Microsoft Lost 20% of Its Money in the Past 6 Months
Microsoft is hiding what's really happening while mocking critics
Great News, IBM 'Gained' Almost 10% in "Goodwill" Value After Firing Tens of Thousands in 2025
"goodwill" will be inflated despite IBM staff getting sick of IBM
Americans Move to GNU/Linux
some of the biggest American populations
I Still Like Drawing and Various Other Arts (They Help My Activism and Journalism), Slop is an Enemy of Creative People
Recognise that slop isn't intelligence; it's a generational excuse for plagiarism and privatisation of not only the Commons but also proprietary knowledge (without authorisation)
Carmen-Lisandrette Maris (Mission:Libre) Explains to Adolescents and Young Adults How Free Software Improves Privacy
Based on what we've seen and read, Mission:Libre has a solid grasp of Software Freedom
Chatbots Didn't Do Any Good for Microsoft
Google "AI" = search + copypasta
Links 02/02/2026: Cultural Cleansing by China and 'Living Behind Firewalls" in Iran
Links for the day
GNU/Linux Measured at More Than 4% in Russia
growing adoption of GNU/Linux in Russia
Gemini Links 02/02/2026: Stages of Age, Workflows, and Counting Capsules
Links for the day
Oracle's Debt Rose Over 20 Billion Dollars in Just 3 Months
Is "hey hi" becoming a synonym for debt?
Oligarchs' 'Speech Zones' Are Not the "Public Square"
The apologists of social control media, including press that got "addicted" to such fake "media", are helping dictators and oligarchs grab the public attention away from the real press
IBM Misleads and Gaslights Investors With Slop Sold as "AI" (the Business is Waning, Mass Layoffs Continue)
People who do this are dishonest. They should not be put in charge.
Links 02/02/2026: 'Melania' a Horror Movie "Will They Inherit Our Blogs?"
Links for the day
Doing More Detailed Series (Long-Form Works)
Long readings or book-like reading binges are only possible when parts are suitably labeled (name and numbers) if not interlinked
Mobbing at the European Patent Office (EPO) - Part II - Racism, Cocaine Use and White-Collar Corruption
When you hire people illegally, to work for cocaine users and keep quite about the cocaine use, what will be the impact on the reputation of an institution?
A Can of WORMS - Part II - Darkening the Name of RMS, Associating It With Crime
Beware projection tactics
Submit Your Suggestions for EU's Embrace of Software Freedom by Tomorrow
Time to leave GAFAM (US) hegemony behind
Slopless Weekend
This is not sustainable
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, February 01, 2026
IRC logs for Sunday, February 01, 2026
Gemini Links 01/02/2026: Fossil Heating Installations and Some FOSDEM Coverage
Links for the day
The State of Memory Leaks in GNU/Linux
The issue won't be solved by adding more memory
Links 01/02/2026: Nvidia's Jensen Talks Down Microsoft 'Open' 'Hey Hi' and Britain's Starmer Makes Friends With China, Japan
Links for the day
Why Microsoft Accenture Has So Many Layoffs in Recent Years
The debt of Accenture doubled a year ago
Links 01/02/2026: Public TV Gutted by Cheeto, Billionaires Fund a Cheeto Propaganda Movie in 'Documentary' Clothing
Links for the day
The New Site ("New Techrights", SSG Since 2023) Exceeds the Old Site in Requests
The "New Techrights" gets about twice as many requests as the "old" (WordPress) "Techrights", the site of 2006-2023
20 Years Ago
Some time soon all this slop frenzy will become like yesterday's "blockchain" or "metaverse"
Gemini Links 01/02/2026: Zdzisław Beksiński and Disconnected Git Workflow
Links for the day
Talks About Nadella's Microsoft Exit After Chatter About Tim Crook Leaving Apple (Years Ahead of Retirement Age)
Mass layoffs and record debt do not represent a company's health.
We Still Cover the Same Problems We Spoke of 20 Years Ago
We're not easily seduced by "novelty" (new things), we try to judge them critically
Patents Standing in the Way
They also cause environmental harm
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 31, 2026
IRC logs for Saturday, January 31, 2026
IBM, a Microsoft Company
Microsoft and IBM as a pair go a long way back