Bonum Certa Men Certa

Consequences of UNIX up for Sale

Novell suicide



Summary: How the outcome of the SCO case -- as positive as it is -- relates to the future

THE SCO case is almost over and just about everyone has already seen the news (so we won't repeat it). As we shall show at the end, it's not quite over because of the vulture fund that's running after Novell (or circling Novell's decaying body rather) and SCO wants to carry on with the case against IBM. We urge readers to remember what Groklaw said about the timing of the vulture fund's arrival at the scene. It was only days before the SCO trial.



In this post we'll try to contain as much coverage as possible and leave readers to explore the sources, which mostly comprise overlapping and obvious information.

Prior to the ruling we found quite a lot of anticipatory coverage such as:

SCO v World Bombshell

The malloc code is stuff that was released years ago by Caldera and certainly is not something SCOG defended in the SCOG v IBM case. Judge Kimball expressed astonishment at how little evidence SCOG presented after years of discovery and litigation.

If a corporation cannot be jailed for fraud, its officers should be.


No Verdict Today, the Final Day, in SCO v. Novell - Deliberations Begin Again Tuesday

SCO v Novell is unfair to Novell

Judge Stewart is obviously capable of great insight and has the legal knowledge. This case suggests strongly that he is not ruling based on law but on some hidden agenda to give every advantage possible to SCOG. Novell has taken the steps to document their motions very well should an appeal be necessary. I believe whichever way the case turns out, some peer review of Stewart’s conduct of this case is in order. Courts run this way are pointless. We can find bullies galore on the street. We do not need them in courts.


Just before the judgment we had:

Court Grants SCO's Oral Motion for Judgment on Novell's Slander of Title Claim

Jury deliberating UNIX ownership in ongoing SCO trial

SCO's fate has been placed in the hands of 12 Utah jurors who will resume deliberations on Tuesday. They are tasked with deciding whether the UNIX SVRX copyrights were transferred from Novell to SCO in a 1995 asset purchase agreement.

SCO's legal battle began in 2003 when the company claimed that Linux includes code that was misappropriated from UNIX. Novell claims that SCO does not have standing to pursue litigation relating to SVRX copyright infringement because it does not own the relevant copyrights. A bench trial that concluded in 2007 ruled in Novell's favor but was later overturned. The case was put before a jury, which heard the closing arguments on Friday.


Ownership of Unix copyrights in hands of Utah jury

A Salt Lake City jury has started deliberations in a case pitting two software companies that each claim ownership of the Unix computer operating systems used by large corporations.


Jury rests for weekend in SCO Group-Novell trial (and it's here also)

A federal jury began deliberations Friday in the trial pitting The SCO Group against Novell Inc. in their dispute over which owns the copyrights to the Unix computer operating systems used by many businesses.


Ownership of Unix Copyrights in Hands of Utah Jury

SCO UNIX Claims Could Be Decided This Week - Or Not.

SCO the company that has been claiming that it owns UNIX copyrights and that Linux infringes on those rights is still alive....barely.


SCO Novell Jury Decision Pending

Ownership of Unix copyrights in hands of Utah jury (AP coverage)

Is this the end for SCO?

I've given up on predicting when the zombie movie series staring the undead SCO monster is finally going to stay quietly in its grave Still, this week a jury is deciding whether SCO or Novell owns Unix's intellectual property rights.

You may have thought that this was settled. Most of us who followed SCO certainly thought that was a done deal. After all, the matter of who owns Unix comes down to a fairly simple issue of contract law and not some esoteric IP (intellectual property) legal gymkhana. And, no matter how SCO sliced it, Judge Dale Kimball decided that Novell owned Unix's copyrights. Alas, another judge decided last August that Kimball had had no right to make that call and that a jury should decide who Unix's copyrights instead.


Here is an interesting one which is worth bearing in mind: "SCO Wants to Sell Java Patent and (Mostly) Pay the Professionals"

SCO Chapter 11 Trustee Edward Cahn has now reported to the bankruptcy court that he's closed on the loan from Ralph Yarro and his friends, and now Cahn wants to pay most of the bills in the bankruptcy from SCO's numerous professionals. And he wants to sell the Java patent, since SCO's never used it and has no use for it going forward. He has a buyer, Liberty Lane, LLC, and so he asks the court to approve the sale to Liberty Lane "or another higher and better bidder." That seems unlikely, in that they claim to have shopped the patent to around 40 potential purchasers. Liberty Lane is offering $100,000.

[...]

And who is Liberty Lane LLC? According to Exhibit B [PDF], they have an office in San Diego, CA but are a Delaware LLC. Exhibit D says Liberty Lane is a company affiliated with Allied Security Trust I, and if that is this patent-protection (from trolls) company, that might not be half bad. Google and HP are members of Allied. At least they'd keep it out of the hands of the litigation lizards. That's Allied's purpose, to dry up patent trolling as a "business" by buying up patents that might be used that way. And Exhibit E [PDF] indicates they are one and the same, in that the letter of intent shows the same name as CFO, Kerry Hopkin.


It is worth watching who gets such patents.

Anyway, the statement from Novell's PR people was probably the first to announce the results of the trial. It's a good outcome for Novell, which also issued a press release about it. Groklaw has already gotten over 1,500 comments and Brian Proffitt gives Groklaw credit.

Then came heaps of press coverage, such as:



Even a former Novell employee wrote about it (there was no disclosure).

The major news is included in many news digests too [1, 2, 3].

On Tuesday, a jury in Nevada sided with Novell in its long-running legal dispute with SCO. The jury in the U.S. District Court for the District of Nevada ruled that Novell owns Unix copyrights that SCO has tried to assert as its own. Pamela Jones, a paralegal who has closely followed the SCO v. Novell case since its beginning on her Groklaw blog, initially deemed this the end of the line. "It's over," she wrote on her site. However, SCO could appeal the ruling.


SCOTUS Blog had this to say:

Issue: Whether the “writing” referenced in 17 U.S.C. €§ 204(a) — requiring for a transfer of copyright ownership “an instrument of conveyance, or a note or memorandum of the transfer” that is “in writing and signed by the owner of the rights conveyed or such owner’s duly authorized agent” — must specify which copyrights were conveyed, or instead requires only that the written instrument could be construed to convey some copyrights.


It's not so crucial. This is more or less a repetition of a 2007 decision. If Novell owns UNIX, there are greater troubles now than there were back then. Since Novell is up for sale, then UNIX may be up for sale, too.

Financially, here is what was happening around that time [1, 2]. Novell got downgraded.

Novell (NOVL) was downgraded today by analysts at Thomson Financial - Gradient and the stock is now at $5.77, up $0.02 (0.35%) on volume of 4,690,115 shares traded.


Now, to emphasise the important part, according to some sources, "SCO vows to press ahead with IBM lawsuit."

But Cahn said SCO intends to continue its lawsuit against IBM, in which the computer giant is accused of using Unix code to make the Linux operating system a viable competitor, causing a decline in SCO's revenues.


From Briefing.com (via Microsoft) we learn:

It was rumored that IBM (IBM 128.46 -0.13) could be interested in Novell (NOVL 5.80). NOVL shares did not react to the rumor. As mentioned before, while many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term.


At ZDNet, one GNU/Linux enthusiast asks, "Why doesn't IBM just buy Novell already?" (we did an April prank about it one year ago)

I actually started pondering this a few days before the Novell-SCO ruling on Tuesday clearly put Novell in an important position as a “[defender of] Linux on the intellectual property front.” Why, you ask, would a Googley Edu blogger be thinking about major players in the enterprise Linux market? Because I can see an open source showdown in the making here, the beneficiaries of which will be consumers, SMBs, enterprises, and educational institutions. I don’t get the feeling the showdown will be any fun, though, if Novell is left to its own devices.


What we do know is that Novell may be looking for a buyer. As Tim puts it:

That is the question? It certainly seems like its a possibility in the case of Novell, with rumours abound on the Net that it may be up for grabs. Speaking personally, I wonder how much of an opportunity Novell missed when it signed a deal with Microsoft. Regardless of if there is a “master plan” in operation, I don’t think it can be argued that the “deal” did damage to the Novell image.


The eternal boss of JBoss (Marc Fleury), who met Ron Hovsepian, argues that Novell is likely to sell itself.

So let's see if I can summarize the Novell thing as i understand it.

a/ The offer is from a hedge fund b/ the offer is 50% above EV c/ the offer was turned down

c/ can be written off as a mere negotiation step. The board is rejecting the first offer on the table. What else do you expect them to do? There is nothing to see here and I would still put the odds very high on Novell is a sell.


Novell has rejected the first bid (probably as expected from a negotiator) and here is a new video that covers that.



For more background on the subject, see the following older posts:

  1. Vulture Fund Still the Only Bidder for Novell
  2. Novell May be Going Private, Hedge Fund Has Cash
  3. Analyst Expects Microsoft Bid to Buy Novell
  4. Ron Hovsepian Receives Another Large Lump of Cash as Novell Sale Looms
  5. GNU/Linux-Savvy Writers View Elliot Associates as Bad Neighbourhood
  6. Firm Behind Novell Bid Has Shady Past, Could be Tied to Microsoft (Paul E. Singer's 'Vulture Fund')
  7. Simon Phipps: “Seems Even With Microsoft’s Support Novell Couldn’t Cut It”


The bottom line is that SCO does not own UNIX. But we don't really know who might be the owner of UNIX later this year.

Comments

Recent Techrights' Posts

The High Cost of Making Scepticism of Proprietary Voting Machines a "Trump" and "Conspiracy Theory" Territory
Time to get back to paper? Or read an old paper?
Today We Got an Early Birthday Gift
Exciting times
[Meme] Going Too Far to the Left Can Breed Militant Ideology
Some people can never be appeased because they prefer not to be appeased
FSF Expressed No Preference Regarding Presidential Candidates (Its Founder Did)
Because he is a principled person, he does not prioritise loyalty to customers or employers (money)
Who Next on the Linux Foundation's 'Kill List'?
Remember that only about 2% of the "Linux" Foundation's budget goes to Linux
 
[Meme] Questioning Proprietary Software? Not OK...
A disaster long in the making
Links 07/11/2024: HTTP/3, Health Research, and Punditry
Links for the day
Gemini Links 07/11/2024: On Writing Publicly and Record Player Table
Links for the day
Open Source Security Foundation (OpenSSF) Hosted SOSS as Microsoft Propaganda Platform With Microsoft Front Group OSI
They essentially promote what they're attacking under false pretences [...] OSI is deeply corrupt. It's more toxic than arsenic.
Anti-Linux FUD, Now in LLM Form, Thanks to Brittany Day
They attack Linux with chatbots
[Meme] When You Discredit People Who Discredit Secret Code
proprietary systems with hundreds of millions of transistors (and hundreds of millions of lines of code)
Links 07/11/2024: Online Manipulation in Social Control Media, Election Deniers, and More
Links for the day
Gemini Links 07/11/2024: emacs-guix and File Hoarding
Links for the day
[Meme] Election Day at the European Patent Office
Less than 60 minutes left to cast your vote
Staff Union of the European Patent Office (SUEPO) Election Ending Today
In one hour
[Meme] When the Patent Office Does Illegal Things and Staff Speaks Out
many leaks received today
Apple's Debt Has Skyrocketed While Gimmicks Like Vision Pro Failed
In Apple's case, the debt is almost double the "Cash on Hand", which isn't even cash
A President Trump is Excellent News to Microsoft
His racist policies gave lots of contracts to Microsoft
Links 07/11/2024: Facebook Scams, Journalists on Strike
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, November 06, 2024
IRC logs for Wednesday, November 06, 2024
Microsoft-Connected Publishers Want Us to Think That Linux is Some Sort of a Virus and a "Backdoor"
"The problem is with windows and the attack vector is via Windows"
We've Made it to 18! Here's to Another 18!
Going on for another 18 years means until some time at the end of 2042
Links 07/11/2024: Political Angst and Laptop Issues
Links for the day
Even LKML Subjected to Slop/SPAM by Guardian Digital, Inc (linuxsecurity.com)
They're really awful
Links 06/11/2024: BPF in RFC 9669, More Facebook Fines for Privacy Abuses
Links for the day
Gemini Links 06/11/2024: Political Shock and Hermaic Encouragement
Links for the day
Planet Debian Allows Politics (But It Depends on Your Opinions and Debian's Big Sponsors)
Planet Debian is OK with politics... as long as all your political opinions are the "correct" ones and you add cute animals
What Makes RMS Such an Attractive Target ('Discreditisation' Campaigns)
Don't be so easily fooled
The Biggest OEMs or Vendors of GNU/Linux Stopped Competing With Microsoft (Which Pays Them to Promote Windows, Too)
Where are the competition authorities (or regulators for that matter)?
Let's Encrypt Falls to a New Low of Only 0.6% of Gemini Capsules Known to Lupa
In Gemini Protocol, certificates for encryption are required, but centralised Certificate Authorities (CAs) aren't needed
Computer-Generator Crap Flooding the Web, the Latest Example About "Linux"
Here's today's example
Links 06/11/2024: Election Disinformation and Legal Actions
Links for the day
Gemini Links 06/11/2024: Stargazing and Death on Hallowe'en
Links for the day
Would You Trust a Liar?
Why lie about the authorship?
Mass Layoffs at Mozilla Announced During US Elections
Maybe nobody will notice?
[Meme] Announcing "Results" Before Everyone Even "Played"
There is a "tech" angle to otherwise political news
US Polls Close in One Minute (Social Control Media Does Not Care, Will Not Wait)
US election results will be known in about 2 days
Concentration and Centralisation Versus Aggregation or Syndication
KDE has a history of burying old sites
Social Control Media, Even Hours Before Polls Have Closed
Has social control media controlled by CPC (TikTok) and the Trumpmobile guy (Musk's "X") done enough to convince people not to even vote (based on presumptive "results", presented a long time before all polls have closed)?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, November 05, 2024
IRC logs for Tuesday, November 05, 2024
Wayland Pains in Community-Led Distros of GNU/Linux
Few people and companies use Wayland; there's hardly any technical or practical reason to choose it
IBM Still Conflating Microsoft With 'Security'
As a meme
Sanctions Cause Fragmentation in Software
some Chinese Linux developers are already subjected to restrictions similar to Russians'
Web Failing With Slop, Even in 'Linux' Sites (LLM Spam)
Add SEO prompting to the mix and the Web becomes a pool of slop, not knowledge
[Meme] State of the World Wide Web and Online Journalism
Technically a failure (DRM) and cannot even get basic things right
Trump's signature policy, building a wall, copied from Irish-Australian student politician
Reprinted with permission from Daniel Pocock
Linus Torvalds' self-deprecating LKML CoC mail linked to Hitler's first writing: Gemlich letter
Reprinted with permission from Daniel Pocock
[Meme] Turning 18 in One Day
just one more day
Birthday Tomorrow
Many cakes and drinks are ready; we're one day away now
The Internet is Failing to Protect Democratic Processes and Human Knowledge
Amplifying lies, rewarding plagiarists
Links 05/11/2024: Criminal Referrals Regarding Patent Trolls and Disinformation About the Election Process (Already)
Links for the day
Gemini Links 05/11/2024: 'App' Needed for Parking, NNCP, Gomphotherium
Links for the day
How Voting Does Not Work
You cannot vote from an "app"
Saving the Planet With Honesty, Transparency, and Sharing (Not Only of Computer Code)
GAFAM is destroying the only habitat humans and other animals have and it'll only get worse
Disinformation About Election Outcomes Even Before Any Election Outcomes (or Election/Voting!)
seeding doubt about election outcomes
Links 05/11/2024: Bluesky and Enshittification, Pugad Baboy, and Lots of Disinformation Flooding the Web
Links for the day
[Meme] Sweaty Under the Belly
"OK, my critics are 'spam'"
Microsoft Bribing Canonical (to Stop Competing) and Bribing Users to Shun the Competition
Canonical is worth shunning
[Meme] The 2024 'Info Bros'
And prehistoric googling
Computers Getting Worse (for the User) Over Time
This is like Windows-ism coming to "Linux" through the hardware
[Meme] How NOT to Vote
Another form of (mostly-unspoken-of) election interference
An LLM Inside a 'Search' Engine Means That Companies Tell You What They Want, Not What Web Pages to Visit
The future of 'googling' things might be as unreliable as using Social Control Media as a source of information
Google's Debt Has Increased and 'Cash on Hand' Fell by 22.27% This Past Year
These are the numbers that the corporate media intentionally leaves out
Against Outsourcing of Sites and E-mail
Software Freedom is great, but it is not enough if you let someone else do it 'for you'
Drew DeVault: People Talking About My Attack Site (Against the Founder of GNU/Linux) is "Spam"
"Spam on sr.ht mailing lists"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, November 04, 2024
IRC logs for Monday, November 04, 2024
There's a Reason Why Techrights is Turning 18 and Tux Machines Will Turn 20.5 Next Month
I started advocating GNU/Linux when I was a teenager
"Oppose the Fascist"
what the founder of GNU/Linux said
Techrights Has a Long History of Fighting to Expose 'Team Mono' or Microsofters Inside GNOME
Never downplay the malice of Microsoft and its operatives
Halloween, All Saints Day & Swiss citizenship
Reprinted with permission from Daniel Pocock
Gemini Links 05/11/2024: Halloween Over, Intention and Implementation, Bookmark Syncing
Links for the day