Mixed messages to Linux users over SCO threat

On 14th May, SCO said that Linux is an unauthorized derivative of UNIX, that it holds rights in UNIX that are being infringed and that legal liability for the use of Linux may extend to commercial users. It suspended all of its future sales of the Linux operating system until further notice.

About 1,500 commercial users of Linux then received a letter from SCO, stating in part that the “legal liability that may arise from the Linux development process may also rest with the end user.”

The letter went on to say, “Similar to analogous efforts underway in the music industry, we are prepared to take all actions necessary to stop the ongoing violation of our intellectual property or other rights.”

The letter followed SCO’s launch in March of a $1 billion lawsuit against IBM over the same issue. Last week Microsoft announced a deal with SCO to license SCO's patents and source code for the UNIX operating system.

However, US software firm Novell and telco AT&T also own rights in UNIX. Today, the Wall Street Journal reports unnamed sources who say that Novell retains the patents and copyrights in UNIX and that, basically, the company does not plan to assert rights against Linux.

According to the newspaper, Novell does own the relevant patents – but it quotes SCO's CEO, Darl McBride, saying that Novell sold to SCO rights to enforce the intellectual-property rights.

The Linux community has been left in confusion about the threats from SCO and Microsoft’s motives for signing a deal. It may take little comfort from today's unofficial Novell comments.

Technology analysts Gartner Research warn that the threats from SCO should be taken seriously, although it admits to doubts about the quality of SCO’s case.

The firm expects that SCO will not back down, and advises that even if SCO and IBM reach a settlement, this will not remove any existing liability on the part of other commercial users. Nor will commercial users be able to sue the distributors who gave them the operating system – most distributors have protective clauses in their contracts with customers.

Gartner analyst George Weiss recommends that:

• As the timescale of the IBM case is likely to be over a year then commercial users should “minimize Linux in complex, mission-critical systems until the merits of SCO's claims or any resulting judgments become clear”;
• Companies planning large-scale Linux projects using a large retailer such as Dell Computer or IBM should “seek a comprehensive support contract, including pre-installation, configuration testing and operating system certification”; and
• Before any open-source code, especially Linux, is brought into a company careful checking of “its source, integrity and any encumbrances” should be carried out by the IS and legal departments.