MESSAGE
| DATE | 2003-09-24 |
| FROM | From: "Inker, Evan"
|
| SUBJECT | Subject: [hangout] HP Expected to Indemnify Linux Customers
|
HP Expected to Indemnify Linux Customers
By Thor Olavsrud
September 24, 2003
Hewlett-Packard (Quote, Chart) Wednesday is expected to announce that it
will indemnify its Linux customers should SCO Group (Quote, Chart) bring a
copyright infringement suit against them, according to The Wall Street
Journal.
The hardware giant's expected move is a reaction to SCO's decision to demand
that enterprises that utilize Linux buy a license, because it claims that
Linux is an unauthorized derivative of its Unix intellectual property.
According to the Journal, HP initially considered a counter suit against
SCO, but decided to avoid the legal cloud if possible and offer protection
to its customers instead. The report said HP will offer indemnification to
any customer that has acquired Linux on an HP server or workstation as of
Oct. 1.
SCO Group hailed the news Wednesday morning, saying HP's decision signifies
acknowledgement that issues exist in Linux.
"HP's actions this morning reaffirm the fact that enterprise end users
running Linux are exposed to legal risks," SCO said in a statement
Wednesday. "Rather than deny the existence of substantial structural
problems with Linux as many Open Source leaders have done, HP is
acknowledging that issues exist and is attempting to be responsive to its
customers' request for relief. HP's actions are driving the Linux industry
towards a licensing program. In other words, Linux is not free."
SCO praised HP for standing up to protect its customers against potential
litigation, and encouraged IBM, Red Hat and other Linux vendors to do the
same.
"We think their customers will demand it," SCO said.
SCO's crusade against Linux began with IBM. On March 6, the company sent a
letter to IBM Chairman and CEO Sam Palmisano, warning him that IBM had
allegedly breached its contract with SCO by contributing portions of its
Unix-based AIX code to the open source movement, and by introducing concepts
from Project Monterey, a joint effort by SCO and IBM to develop a 64-bit
Unix-based operating system for Intel-based processing platforms, into
Linux. IBM scrapped Project Monterey in May 2001. SCO has since leveled a
multi-billion dollar lawsuit at IBM over the issue.
But in the meantime, while maintaining that its problems were with IBM and
the alleged violation of its contract, SCO has also been giving customers
notice. In May, it sent a letter to some 1,350 companies that use Linux,
warning them, "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."
It also issued a statement that "Linux is an unauthorized derivative of Unix
and that legal liability for the use of Linux may extend to commercial
users."
The company has already taken a first step toward enforcing that claim,
having received U.S. copyright registrations in July for its Unix System V
and UnixWare source code, just the firepower it needs to pursue copyright
violation suits. Copyright registrations are often a prelude to legal
action, according to intellectual property attorneys.
"SCO now has broad legal rights against end-users," Darl McBride, president
and CEO of SCO, said in July. "We intend to use these rights carefully and
judiciously."
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