SCO Dealt Setback in IBM Linux Lawsuit

Jun 30, 2006  5:12 PM (ET)

By PAUL FOY
Associated Press

http://apnews.myway.com//article/20060630/D8IIP82G8.html


SALT LAKE CITY (AP) - A U.S. magistrate has struck down many of the SCO 
Group Inc.'s claims against IBM Corp., saying the Utah company failed to 
show its intellectual property was misappropriated when Big Blue donated 
software code to the freely distributed Linux operating system.

Magistrate Brooke Wells dismissed 182 of SCO's 294 claims, dealing a major 
setback to SCO's $5 billion lawsuit.

The suit, filed in 2003, accused IBM of donating SCO's Unix code to Linux 
developers, but Wells ruled SCO had produced virtually no proof of the 
allegation.

She said SCO had "willfully failed to comply" with court orders to show IBM 
which of millions of lines of code in Linux were supposedly 
misappropriated. SCO argued that was IBM's job.

Wells likened SCO's stance to a security guard who accuses a shopper of 
stealing merchandise - and demands the shopper show proof of the theft.

"It would be absurd for an officer to tell the accused that 'you know what 
you stole; I'm not telling,'" Wells wrote in a 39-page decision signed 
Wednesday.

The magistrate said that if there was any merit to SCO's claims, they were 
likely to produce only nominal damages instead of billions of dollars.

"It is almost like SCO sought to hide its case until the ninth inning in 
hopes of gaining an unfair advantage despite being repeatedly told to put 
'all evidence ... on the table,'" she wrote.

Wells dismissed SCO's arguments that only IBM engineers could verify that 
IBM gave away proprietary software code to Linux, a work of thousands of 
developers around the world.

"SCO's arguments are akin to SCO telling IBM, 'Sorry, we are not going to 
tell you what you did wrong because you already know,'" the magistrate wrote.

SCO acknowledged Friday that the ruling was a setback, but spokesman Blake 
Stowell said the company would continue to press its case. He said the 
magistrate dismissed general claims but kept several major ones that assert 
lines of Unix code were dumped into Linux.

The ruling capped a month of bad news for SCO. The company reported $4.69 
million in losses for its most recent quarter, including nearly $3.8 
million in new litigation expenses.

Any appeal would go to U.S. District Judge David Kimball, who has already 
upheld an evidence-related ruling by Wells that SCO had appealed.

IBM spokesman John Charlson said the company doesn't comment on litigation, 
but that Wells' ruling "says it all."

SCO doesn't have enough evidence "to shake a stick at," said Pamela Jones, 
creator and editor of Groklaw.net, a Web site devoted to open-source 
software legal issues.

"Linux is booming, and everyone knows now that the code has been examined 
every which way, and it's clean as code can be," she said.

---

On the Net:

http://www.ibm.com

http://www.sco.com


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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