SCOsource

Last updated

SCOsource is a business division of The SCO Group that managed its (now legally voided) Unix intellectual property. The term SCOsource is often used for SCO's licensing program that allowed corporate users of Linux to buy licenses to proprietary Unix technology that SCO claimed exists in the Linux operating system. A single CPU license costs $699 (USD).

Contents

On July 21, 2003, SCO announced that it intended to sell binary-only licences to use the free Linux operating system which would remove the threat of litigation from licence-holders. Linux advocates reacted by stating that SCO had no basis for this action, as their claims were still disputed in court, and that the terms of the GPL seemed to indicate that doing this may cause SCO to forfeit their rights to distribute Linux or Linux-derived code in any form.

EV1Servers.net

On March 1, 2004, SCO announced it had reached a license agreement with EV1Servers.net, which allowed EV1Servers to use some of SCO's "intellectual property". SCO's Blake Stowell claimed the deal was worth upward of "seven figures" ($1,000,000) while a few days later EV1Servers CEO Robert Marsh claimed the amount was much lower. The exact amount was required to remain secret under terms of the agreement.

Computer Associates

During discovery of the SCO v. IBM case, SCO attorney Mark J. Heise wrote a letter answering some questions raised by IBM's attorneys. In this letter, sent on February 4, 2004 and published on Groklaw on February 10, 2004, Heise revealed that Computer Associates bought a Linux intellectual property license from SCO.

On March 6, 2004 Network Computing likewise published an article in which it said: "Computer Associates, a major corporate backer and user of Linux, signed a SCOsource license last August as part of a $40 million settlement between CA, the Canopy Group and Center 7". Sam Greenblatt, senior vice president and chief architect of the Linux technology group at CA, further added that "CA's license for Linux technology is part of a larger settlement with the Canopy Group. It has nothing to do with SCO's strategy of intimidation."

Computer Associates later denied buying licenses from SCO [ permanent dead link ]:

CA senior VP of product development Mark Barrenechea says that Bench's claim is nonsense. CA has not paid SCO any Linux taxes, he said. Drawing up short of calling SCO a liar, Barrenechea claims that SCO has twisted a $40 million breach-of-contract settlement that CA paid last summer to the Canopy Group, SCO's biggest stockholder, and Center 7, another Canopy company, and has turned it into a purported Linux license.
As a 'small part' of that settlement, Barrenechea said, CA got a bunch of UnixWare licenses that it needed to support its UnixWare customers. SCO, he said, had just attached a transparent Linux indemnification to all UnixWare licenses and that is how SCO comes off calling CA a Linux licensee.

SCOsource revenue

In October 2004 SCO Group Inc's CEO Darl McBride would admit that, after initial deals with Microsoft Corp and Sun Microsystems Inc brought in $8.3m in the second quarter of fiscal 2003, revenue from SCOsource would drop to $7.3 million in the third quarter and $10.3 million in the fourth. Revenue from SCOsource then plummeted to $20,000 in the first quarter of 2004, followed by $11,000 in the second quarter and $678,000 in the third quarter. [1]

In June 2007 SCO revealed that quarterly revenue from SCOsource in the 2004-2005 period averaged $20,000 to $35,000. The company’s financial results indicate that SCOsource has generated a total of $27.5m between 2003 - 2007, at a cost of $55.2m. [2]

See also

  1. "SCO CEO admits IP license revenue disappointment", October 10, 2004, Tech Monitor (formerly Computer Business Review).
  2. "SCO losses down but IP revenue runs dry", June 6, 2007, Tech Monitor (formerly Computer Business Review).

Related Research Articles

<span class="mw-page-title-main">Novell</span> 1980–2014 American multinational software and services company

Novell, Inc. was an American software and services company headquartered in Provo, Utah, that existed from 1980 until 2014. Its most significant product was the multi-platform network operating system known as Novell NetWare.

Sequent Computer Systems was a computer company that designed and manufactured multiprocessing computer systems. They were among the pioneers in high-performance symmetric multiprocessing (SMP) open systems, innovating in both hardware and software.

Darl Charles McBride was an entrepreneur and CEO of Shout TV Inc. McBride was known as the former CEO of The SCO Group. On March 7, 2003, during McBride's tenure as CEO of the company, The SCO Group initiated litigation against IBM, alleging breach of contract and copyright infringement claims connected to Unix. SCO Group lost in a series of court battles, and was eventually forced into bankruptcy.

<i>SCO Group, Inc. v. International Business Machines Corp.</i>

SCO Group, Inc. v. International Business Machines Corp., commonly abbreviated as SCO v. IBM, is a civil lawsuit in the United States District Court of Utah. The SCO Group asserted that there are legal uncertainties regarding the use of the Linux operating system due to alleged violations of IBM's Unix licenses in the development of Linux code at IBM. The lawsuit was filed in 2003, it has lingered on through the bankruptcy of SCO Group and the adverse result in SCO v. Novell, and was reopened for continued litigation by order of a new judge on June 14, 2013. Pursuant to the court order reopening the case, an IBM Motion for Summary Judgment was filed based upon the results of the Novell decision. On December 15, 2014, the judge granted most of IBM's motion, thereby narrowing the scope of the case, which remained open. On March 1, 2016, following a ruling against the last remaining claims, the judge dismissed SCO's suit against IBM with prejudice. SCO filed an appeal later that month. In February 2018, as a result of the appeal and the case being partially remanded to the circuit court, the parties restated their remaining claims and provided a plan to move toward final judgement. In 2021, the case finally ended in a settlement.

<span class="mw-page-title-main">SCO Group</span> Defunct American software company

The SCO Group was an American software company in existence from 2002 to 2012 that became known for owning Unix operating system assets that had belonged to the Santa Cruz Operation, including the UnixWare and OpenServer technologies, and then, under CEO Darl McBride, pursuing a series of high-profile legal battles known as the SCO-Linux controversies.

<span class="mw-page-title-main">Caldera International</span> Defunct American software company

Caldera International, Inc., earlier Caldera Systems, was an American software company that existed from 1998 to 2002 and developed and sold Linux- and Unix-based operating system products.

<i>Groklaw</i> Legal website

Groklaw was a website that covered legal news of interest to the free and open source software community. Started as a law blog on May 16, 2003, by paralegal Pamela Jones ("PJ"), it covered issues such as the SCO-Linux lawsuits, the EU antitrust case against Microsoft, and the standardization of Office Open XML.

USL v. BSDi was a lawsuit brought in New Jersey federal court in 1992 by Unix System Laboratories against Berkeley Software Design, Inc and the Regents of the University of California over intellectual property related to the Unix operating system; a culmination of the Unix wars. The case was settled out of court in 1994 after the judge expressed doubt in the validity of USL's intellectual property, with Novell and the University agreeing not to litigate further over the Berkeley Software Distribution (BSD).

<span class="mw-page-title-main">Santa Cruz Operation</span> Software company based in Santa Cruz, California

The Santa Cruz Operation, Inc. was an American software company, based in Santa Cruz, California, that was best known for selling three Unix operating system variants for Intel x86 processors: Xenix, SCO UNIX, and UnixWare.

<span class="mw-page-title-main">UnixWare</span> Unix operating system

UnixWare is a Unix operating system. It was originally released by Univel, a jointly owned venture of AT&T's Unix System Laboratories (USL) and Novell. It was then taken over by Novell. Via Santa Cruz Operation (SCO), it went on to Caldera Systems, Caldera International, and The SCO Group before it was sold to UnXis. UnixWare is typically deployed as a server rather than a desktop. Binary distributions of UnixWare are available for x86 architecture computers. UnixWare is primarily marketed as a server operating system.

<span class="mw-page-title-main">Canopy Group</span> American investment firm

The Canopy Group is an American investment and property management firm founded by Ray Noorda in 1995 through the Noorda Family Trust. It is headquartered in Lindon, Utah. At various times it has consisted of, or been known as, Canopy Technologies, Canopy Properties, and Canopy Ventures.

In a series of legal disputes between SCO Group and Linux vendors and users, SCO alleged that its license agreements with IBM meant that source code IBM wrote and donated to be incorporated into Linux was added in violation of SCO's contractual rights. Members of the Linux community disagreed with SCO's claims; IBM, Novell, and Red Hat filed claims against SCO.

<i>SCO Group, Inc. v. Novell, Inc.</i>

SCO v. Novell was a United States lawsuit in which the software company The SCO Group (SCO), claimed ownership of the source code for the Unix operating system. SCO sought to have the court declare that SCO owned the rights to the Unix code, including the copyrights, and that Novell had committed slander of title by asserting a rival claim to ownership of the Unix copyrights. Separately, SCO was attempting to collect license fees from Linux end-users for Unix code through their SCOsource division, and Novell's rival ownership claim was a direct challenge to this initiative. Novell had been increasing their investments in and support of Linux at this time, and was opposed to SCO's attempts to collect license fees from Novell's potential customers.

Beginning in 2003, The SCO Group was involved in a dispute with various Linux vendors and users. SCO initiated a series of lawsuits, the most known of which were SCO v. IBM and SCO v. Novell, that had implications upon the futures of both Linux and Unix. SCO claimed that Linux violated some of SCO's intellectual properties. Many industry observers were skeptical of SCO's claims, and they were strongly contested by SCO's opponents in the lawsuits, some of which launched counter-claims. By 2011, the lawsuits fully related to Linux had been lost by SCO or rendered moot and SCO had gone into bankruptcy. However the SCO v. IBM suit continued for another decade, as it included contractual disputes related to both companies' involvement in Project Monterey in addition Linux-related claims. Finally in 2021 a settlement was reached in which IBM paid the bankruptcy trustee representing what remained of SCO the sum of $14.25 million.

<span class="mw-page-title-main">Project Monterey</span> 1990s Unix coalition

Project Monterey was an attempt to build a single Unix operating system that ran across a variety of 32-bit and 64-bit platforms, as well as supporting multi-processing. Announced in October 1998, several Unix vendors were involved; IBM provided POWER and PowerPC support from AIX, Santa Cruz Operation (SCO) provided IA-32 support, and Sequent added multi-processing (MP) support from their DYNIX/ptx system. Intel Corporation provided expertise and ISV development funding for porting to their upcoming IA-64 CPU platform, which was yet to be released at that time. The focus of the project was to create an enterprise-class UNIX for IA-64, which at the time was expected to eventually dominate the UNIX server market.

Ralph J. Yarro is an American business executive, entrepreneur and an activist. He co-founded Atua Ventures and was previously the CEO of the Canopy Group. Yarro has been associated with various technology companies, including Altiris, Caldera, Techcyte, Center 7, Lineo, Linux Networx, and Voonami.

<span class="mw-page-title-main">History of Unix</span> Operating system

The history of Unix dates back to the mid-1960s, when the Massachusetts Institute of Technology, Bell Labs, and General Electric were jointly developing an experimental time-sharing operating system called Multics for the GE-645 mainframe. Multics introduced many innovations, but also had many problems. Bell Labs, frustrated by the size and complexity of Multics but not its aims, slowly pulled out of the project. Their last researchers to leave Multics – among them Ken Thompson, Dennis Ritchie, Doug McIlroy, and Joe Ossanna – decided to redo the work, but on a much smaller scale.

Smallfoot was the name of both a rapid application development toolkit and an embedded operating system designed and released by Caldera Systems/Caldera International/The SCO Group in both UnixWare and Linux formats. Created for use in embedded environments such as point of sale systems and video gaming, the toolkits were intended to create specifically tailored operating systems geared towards the desired use. These customized and stripped down versions of the operating systems made less of a footprint, hence the names Smallfoot embedded UNIX and Smallfoot embedded Linux respectively.

Xinuos is an American software company that was created in 2011. It was first called UnXis until assuming its current name in 2013. Xinuos develops and markets the Unix-based OpenServer 6, OpenServer 5, and UnixWare 7 operating systems under SCO branding. Xinuos formerly sold the FreeBSD-based OpenServer 10 operating system.

<span class="mw-page-title-main">SCO Forum</span> Unix conference

SCO Forum was a technical computer conference sponsored by the Santa Cruz Operation (SCO), briefly by Caldera International, and later The SCO Group that took place during the 1980s through 2000s. It was held annually, most often in August of each year, and typically lasted for much of a week. From 1987 through 2001 it was held in Santa Cruz, California, on the campus of the University of California, Santa Cruz. The scenic location, amongst redwood trees and overlooking Monterey Bay, was considered one of the major features of the conference. From 2002 through 2008 it was held in Las Vegas, Nevada, at one of several hotels on the Las Vegas Strip. Despite the name and location changes, the conference was considered to be the same entity, with both the company and attendees including all instances in their counts of how many ones they had been to.