Litigation


SCO Group today filed for bankruptcy protection. With less than $10m cash left to call on, SCO said that Chapter 11 protection and reorganization would protect assets as it addresses, ahem, “potential financial and legal challenges”.

I love it!

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Infomation Week has an article this week claiming, among other things, that IBM provides sponsorship for the the nonprofit that freely hosts Groklaw, a fine legal repository famous for its anti SCO slant.

Per the article:

Groklaw, a widely read Web site that has sided with IBM in its legal battle with The SCO Group, receives free hosting from an academic research project that is in part funded by IBM, according to the project’s director.

Paul Jones, director of the University of North Carolina’s ibiblio project, confirmed in an interview that ibiblio provides free Web hosting services to Groklaw and that ibiblio is funded in part by grants from IBM as well as several other tech companies with a strong interest in the promotion of the Linux operating system.

“We have some sponsorship from IBM, although they’re not our largest sponsor,” said Jones.

Jones said he was unable to say exactly how much funding ibiblio receives from IBM. Inquiries to IBM on the matter weren’t immediately answered.

Groklaw for years has been a thorn in the side of The SCO Group, which sued IBM in 2003 claiming that IBM’s contributions to the Linux operating system contain computer code purloined from SCO. Since then, Groklaw has become an online repository of case documents and fierce anti-SCO editorializing by the site’s editors — including chief blogger Pamela Jones, who is not related to Paul Jones.

IBM gave a swift and concise response, saying essentially “you people are smoking crack”.

IBM has no connection to the editorial content posted on Groklaw.

Groklaw’s website, and hundreds of others, are hosted on a website at the University of North Carolina (UNC), called ibliblio. This site is described by UNC as a public library. ibiblio runs on IBM System x servers which were funded through an IBM Shared University Award Grant awarded to UNC — a grant that predates Groklaw ever being hosted on ibiblio. Anyone can host a site there and IBM does not sponsor, nor endorse, the content of those sites.

IBM is proud to sponsor many universities around the world in various ways, including helping them host websites like the one at UNC.

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IBM is suing Amazon over its alleged abuse of IBM ecommerce and customer customization technologies. The court filings are not yet public anywhere that I can find (on the ridiculous Texas Eastern District Website), but the patents allegedly violated are:

  • US 5,796,967 - Presenting Applications in an Interactive Service.
  • US 5,442,771 - Storing Data in an Interactive Network.
  • US 7,072,849 - Presenting Advertising in an Interactive Service.
  • US 5,446,891 - Adjusting Hypertext Links with Weighted User Goals and Activities.
  • US 5,319,542 - Ordering Items Using an Electronic Catalogue.

The most thorough article that I could find summarizing the implications is at BusinessWeek:

IBM seems to have come down on both sides of this issue. In December, the company filed an amicus brief in the U.S. Supreme Court case of Laboratory Corp. of America Holdings v. Metabolite Laboratories, arguing that method patents have been overdone, and acknowledging that some of its own business-method patents may be invalid. “I will be looking to see if IBM has had a change of heart since last December,” says attorney James W. Dabney, partner at Fried, Frank, Harris, Shriver & Jacobson LLP.

From Monsters and Critics:

‘We filed this case for a very simple reason. IBM`s property is being knowingly and unfairly exploited,’ said Dr. John E. Kelly III, senior vice president of IBM Technology and Intellectual Property. ‘IBM is one of the world`s leading creators of intellectual property and one of the most progressive in embracing new, highly collaborative ways of driving and managing innovation.

I’ll post more when I can either read the briefs or summarize a lawyer who has. My initial reaction is similar to that or The Register:

Mercifully, a quick search of the United States Patent and Trademark Office revealed that IBM does not appear to hold a patent on the entire concept of ecommerce.

Another PR strike against the kindly open source giant.

UPDATE 11/8/2006

This article has a great line about the case:

In the Amazon case, the stakes are high. IBM’s patents include “storing data in an interactive network,” “ordering items using an electronic catalogue” and “presenting advertising in an interactive service”. These could be considered fundamental to e-commerce on the web. If the patents stand up, it could let IBM impose what amounts to a tax on online shopping.

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Groklaw has a great article about the news in the SCO vs. IBM case. In short, IBM asked the judge to throw out SCO Group’s breach-of-contract and copyright case on the grounds that SCO “has failed to identify any code allegedly owned by SCO and copied by IBM into Linux” (The Judge already stated as much) and that IBM had been encouraged to do as it wished with the source code by AT&T.

“What does that mean? That if IBM were to prevail on all its motions (of course that is a rare event indeed) then the only thing left to bring to a jury would be IBM’s counterclaims. That has to be SCO’s worst nightmare. That would mean the only questions for the jury to decide, if they found for IBM on the rest of IBM’s counterclaims, would be how bad was SCO and how much do they owe IBM?”

Another quote I enjoyed from the comments on the groklaw site (which I’m more and more impressed with each time I visit):

So THIS was what SCO’s spoliation of evidence claim amounted to. All that fuss they made in the press, and they use it to ask the judge to sanction IBM by umm, inferring that errr, IBM looked at AIX/Dynix source code when contributing to Linux?

This heinous act of evidence spoliation by IBM has really advanced SCO’s case by allowing the court to infer what IBM already admitted years ago.

In fact, IBM should file a memorandum to oppose this on the grounds that IBM didn’t just look at AIX source code, it put great flaming gobs of AIX source code in Linux. And it’s PROUD of it, and the court should jolly well infer that instead!

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There has been a lot going on in the IBM world the past few months that we’ve been down.  I wanted to summarize broader things if only becasue they’ve hit my radar. As a quick overview of some things that caught my eye:

  • Earnings are up, share price is down
  • IBM handling CVS HR is a great step for the company’s services division. Of particular interest is the inroads it helps IBM make into the retail sector which could prove a good longer term source of growth as business transformation outsourcing takes hold in that sector.
  • The IBM sponsored World Community Grid has added a third major project — analyzing cancer tissue microarrays. This is a great space for IBM, life-saving benefits aside, if only for the expertise that the company gains in real world grid computing.
  • IBM still owns the supercomputer space, but this market has always been
    limited and with new, cheaper alternatives it will remain so.
  • Popular support still seems to be firmly in IBMs court with respect to its lawsuit vs. SCO.

(more…)

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AP reports that a U.S. court in New York quashed a Microsoft subpoena for IBM documents related to the Microsoft’s European antitrust case.

Judge Colleen McMahon said Microsoft’s subpoena amounted to a “blatant end run” on the European Commission’s authority.

The judge said that the Brussels-based regulator strongly opposed Microsoft’s request, and that enforcing such a subpoena could harm U.S. sovereignty if a foreign court were used to obtain documents in a U.S. proceeding.

Redmond, Wash.-based Microsoft says the commission is colluding with Armonk, N.Y.-based IBM and other rivals, and denying the company a fair chance to review key evidence.

Full article: Court Denies Microsoft Subpoena for IBM Data

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Press & Sun-Bulletin: Plaintiffs await word on IBM talks

ENDICOTT — As settlement talks between IBM and more than 600 residents claiming they have been hurt by pollution from the Endicott plant enter their third year, some said last week they are prepared to wait as long as it takes for a fair outcome.

There’s a good summary of the problem at the end of the article:

The pollution has been traced to IBM’s former microelectronic plant on North Street, now owned by Huron Real Estate Associates. IBM has been cleaning the pollution since shortly after it was discovered under Building 18 in 1979. In 2003, the company began installing vents to prevent the pollution from entering more than 430 properties south of the plant.

Over the years, IBM used and stored gross quantifies of TCE in its circuit board assembly process, but corporate leaders are unaware of spilling any, according to Martin. When asked the question Friday, he referred to previous statements.

“We know of no releases of TCE, yet I will tell you, as I have before, the chemical handling standards of the ’50s and ’60s are not what they are today,” Martin said in September 2003 — the year scientists began more fully to understand the lasting ramifications of pollution from long ago.

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Via David Canton: SCO raises $10 million for Linux fight

SCO is the company that has sued IBM and others claiming that Linux uses UNIX source code that belongs to SCO. This saga has been ongoing for a long time.

CNet and Groklaw … report that SCO just raised $10 million in a private placement. It seems that the funders were existing investors, not new ones.

David links to a CNet article: SCO raises $10 million in stock sale, and a Groklaw post. David calls Groklaw “the site for tracking the SCO/Linux issue”.

Browsing through some of the comments on the Groklaw site it seems that most people are sceptical about SCO’s reasoning and motivation behind this latest action. Some are suggesting it reeks of insider-trading, since the share sales was a private placement - surely they know something that the rest of the world doesn’t ? Otherwise, why wouldn’t they offer the extra shares publically ? There are some rather cynical comments around about where the money is really coming from - perhaps that’s why it was done privately ? To keep it quiet as to who is really funding SCO’s attacks ? Who knows ? The whole SCO thing has been allowed to go on for far too long in my opinion, and I hope some of the upcoming deadlines imposed on SCO will either lead to real progress in the case, or having it thrown out completely.

The world is tired of SCO and its posturing. Although it did give the media something to write about it for a while - but they’re mostly over that now - time to move on.

Does SCO actually offer anything of value to the IT industry anymore ? What products do SCO sell, and who uses them ? Anyone ? Anyone ? No, didn’t think anybody would know.

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