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What's New

STORIES
3 stories in last 48 hours

COMMENTS last 48 hrs

Santa Cruz and its "L...

SCO's Motion to Give Stock ... [+51]

The Apple v. Psystar Litiga... [+184]

For the Sake of History, a ... [+124]

New Novell Deadline for Fil... [+7]

No Further Appeals on OOXML... [+6]



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Headlines:
SCO's Motion to Give Stock Options to 4 Executives
Thursday, August 28 2008 @ 03:56 PM EDT

SCO has filed a motion [PDF], titled Debtor's Motion for (1) a Determination that Stock Options Granted to Executives Were Awarded in the Ordinary Court of Debtors' Business and (2) Continuing Authority to Grant Ordinary Course Stock Options. SCO says it consulted with the US Trustee's Office and it says it takes no position on this motion. But SCO says they are filing the motion "in an abundance of caution." And it has filed a motion [PDF] to be able to file evidence and give testimony about the stock plan under seal.

Well. I would want that too, I'm thinking, all things considered. It's comforting to know there are still people on earth who still want SCO stock. Relax. Just joking around.

The first motion has to do with stock options granted under the SCO 2004 Omnibus Stock Incentive Plan, attached as Exhibit A [PDF], options that SCO granted on August 26, 2008. That was Tuesday. So they granted them and now they are asking the court to say it's OK and to let them do it again in the future.

The plan "is designed to promote the interests of SCO and its stockholders by incentivizing and rewarding employees who make a long-term contribution to the success of the company," SCO says. But trust me, if you want to know just how incentivized the SCO executives have been, you probably want to read their 2008 Proxy Statement, filed with the SEC on March 5, 2008. Looking at both documents together brings them both into a more nuanced context.


read more (2270 words) 51 comments  View Printable Version
Most Recent Post: 08/28 09:32PM by bezz

For the Sake of History, a Novell 1994 10K: Unix source and UnixWare 2 separate products
Wednesday, August 27 2008 @ 10:07 PM EDT

Do you remember Darl McBride testifying at trial in SCO v. Novell in April that if you wanted to get Unix source code, the only way to get it was to license UnixWare and that UnixWare was just the latest version of Unix? The court believed that story, so for the sake of history and truth, then, here is a Novell SEC 10K filing from 1994, when Novell was the place you went to in order to license UnixWare and Unix System V. They sold both UnixWare and Unix source code as two separate products.

read more (751 words) 124 comments  View Printable Version
Most Recent Post: 08/28 09:24PM by PJ

The Apple v. Psystar Litigation - Updated: Complaint as text
Wednesday, August 27 2008 @ 05:00 PM EDT

I've been getting email asking if I'll be covering the newly filed Apple v. Psystar litigation. Here's Apple's complaint [PDF]. I must tell you frankly that I was in the "a pox on both their houses" category, so I thought I probably wouldn't do so in depth.

But then I noticed media reports that Psystar has announced that it will be filing antitrust (!) counterclaims. Antitrust? I couldn't help but reflect -- and I confess it was my first reaction -- that it's so odd that all Microsoft's competitors end up dealing with unexpected allegations, sometimes from small companies, against them in court or before regulatory bodies that just happen to threaten their viability in the marketplace.

Remember Google was accused, and cleared, of an antitrust allegation in the US and before the EU Commission? And IBM was accused of copyright infringement in connection with Linux by SCO, as laboriously chronicled right here on Groklaw. And now Apple has to deal with litigation counterclaims that, so far, seem to me to be dubious at best from a company that just suddenly showed up last year doing things that a first-year law student, or even a mere paralegal like myself, would assume were going to get them royally sued into nonexistence. Now there are announced counterclaims that just happen to go to the heart of Apple's business.


read more (9761 words) 281 comments  View Printable Version
Most Recent Post: 08/28 09:28PM by saulgoode

New Novell Deadline for Filing Brief on Interest, Judgment & Some 2003 SEC Filings About SCOsource
Tuesday, August 26 2008 @ 04:21 AM EDT

The parties stipulated to another extension on the deadline for Novell to file a brief describing what pre-judgment interest it wants from SCO on the amount ordered by the Utah District Court on July 16. The new deadline is August 29. Just a brief note in case you were wondering why there was no filing on the 22nd

Also, I was going through some older materials, and I found a color-coded comparative chart [PDF] that a volunteer made for us long ago. It's a comparison of a July 8, 2003 S3 with an October 14, 2003 amendment, an S-3/A. There was a further amendment, an S-3/A filed on October 23, 2003 as well. It's fascinating to watch the SCO story morph just in these three versions, particularly now, when we can compare all three with what SCO testified to at trial.


read more (3731 words) 244 comments  View Printable Version
Most Recent Post: 08/28 08:18PM by Anonymous

Interview with Richard Hulse of Radio New Zealand, on the decision to offer Ogg Vorbis
Sunday, August 24 2008 @ 03:27 PM EDT

When I read that Radio New Zealand had just decided to start adding Ogg Vorbis files to their online offerings, I was curious. How do folks make such decisions? I surely wish everyone would do what Radio New Zealand has just done.

So I asked Richard Hulse of Radio New Zealand, the station's media manager, to tell me how they came to decide to add Ogg Vorbis to their collection of interviews and broadcasts, already offered as MP3s and in Windows Media Audio. His answers are instructive, and you may find it helpful to note his suggestions on how to effectively request other sites to offer Ogg Vorbis files. And if any of you wish to respond to his requests for help with a how-to, please feel free to lend a hand to make this a success.


read more (2381 words) 158 comments  View Printable Version
Most Recent Post: 08/27 01:10PM by Anonymous

KDE Adopts Fiduciary Licence Agreement Option
Saturday, August 23 2008 @ 05:22 PM EDT

KDE has decided to offer its code contributors an option to use a Fiduciary Licence Agreement that it worked out with FSFE's Freedom Task Force. It's a recommendation, not a requirement. It's a copyright assignment vehicle designed to ensure legal maintainability of the project. And I hear that the response has been very positive already.

At first I was going to put the FSFE press release in News Picks, but I consider this such a wise legal decision on KDE's part, because -- as the press release phrases it, it "enables projects to ensure their legal maintainability, including important issues such as preserving the ability to re-license and certainty to have sufficient rights to enforce licences in court" -- that I am putting it here, so you will consider it too for your project, especially if yours is an international project. You may recall Groklaw's Sean Daly interviewed Shane Coughlan, who leads the Freedom Task Force project, when it was first announced in early 2007. If you have questions, here's the Freedom Task Force contact page. Notice in the press release that the FLA template was used to come up with an FLA for KDE in particular, and you can do something similar for your project, with the Freedom Task Force's help.

I also wanted to mention that FSFE has a Legal and Technical Network now:

The Freedom Task Force coordinates a European Legal and Technical Network. Each participant is referred to as a 'delegate' of the respective network. Membership is by invitation only and if you are interested in participating you can contact us.

Our goal is to strengthen the legal foundation of Free Software through building connections between professionals and researchers active on the continent. The network currently has over 50 legal experts, over 30 technical experts and covers sixteen European countries. It also maintains contacts in Canada, the USA, South Korea, Singapore and Taiwan.

Some network delegates are explicitly recommended by FSFE. To be explicitly recommended the delegate must be approved by the governing council of FSFE.

I think, after thinking a lot about Jacobsen v. Katzer, that the US needs something similar, a place where you can go to find attorneys who know something about FOSS and understand how to protect your interests without doing damage to the FOSS ecosystem at large.


read more (729 words) 120 comments  View Printable Version
Most Recent Post: 08/27 06:44PM by Anonymous

Hong Kong -- Here Comes Me Inc Software! -- & More Bankrupcy Bills - Updated 2Xs
Thursday, August 21 2008 @ 01:07 PM EDT

More bills, bills, bills in the bankruptcy, but it's winding down. But SCO is winding up. Guess where Me Inc Software, the subsidiary, is located? In Utah, or Delaware, or anyplace that the US bankruptcy court in Delaware or the creditors can get at the profits, which SCO executives have described as an anticipated "river of revenue"? Nay, m'lords. In Hong Kong. We learn from the bills that there is a Me Inc Software foreign subsidiary now in China, filing profits tax forms.

So, what do you think? Can Novell get its money from a Hong Kong foreign subsidiary? I'm sure we all agree that SCO would never try to stiff anyone, so the fact that they are setting this up just before the bankruptcy court is about to decide on the question of how Novell will get the money the Utah court decided SCO owes them must be entirely coincidental. I feel a song coming on:

Ah, sweet mystery of life
At last I've found you...
T'is love and love alone that can repay

I hope Novell likes music, because methinks it will never see that $3 million. The other creditors? Do they still hope? Like a raisin in the sun. Hark! There is one, buried in the bills, asking about the status of the case. Dream on, my friend! Lie back, try to relax, while I tell you about Hong Kong.


read more (2385 words) 341 comments  View Printable Version
Most Recent Post: 08/26 08:53PM by Vic

German Court: SCO Must Pay a Fine. Yes. Again. - updated
Wednesday, August 20 2008 @ 02:54 PM EDT

SCO was taken to court again in Germany, by one of the companies that got an injunction years ago, Heise is reporting, and now it must pay a fine to the company, Thinking Objects Software GmbH. Three companies took SCO Germany to court back then, and this is one of the three. I'll show you a computer translation first of the headline in Heise. It is perfection:
SCO Group Germany must check software updates of the nut/mother company message to read out

Sounds like a job for ELIZA. I'll try to explain what I understand the article to be saying, but if you have a better translation, please provide it.

SCO was enjoined from making certain claims in Germany, and it signed an agreement in 2003 not to say them there, because its alternate choice was to have to prove them immediately, so it chose silence. As a result, SCO can't say in Germany that Linux violates SCO's IP or that end users could be liable for violations of SCO's intellectual property or that Linux is an unauthorized derivative of UNIX. Unless it can prove it. Good luck with that. SCO hasn't been successful proving that anywhere, so it can't say that in Germany. But the US website makes such claims, which were apparently shown in Germany too. Naughty, naughty.

It seems that SCO pled the "we didn't see what the US was doing when it updated the page" defense, but it was told that it used that excuse once before, so now it must pay a fine to the complaining company. Here's an incident that happened in 2007, to refresh your memory. And here's a 2003 offense, for which SCO was ordered to pay a 10,000 EU fine. Are they incorrigible? Well. Let's leave that to God. However, the Heise report indicates that they are at least repeat offenders.


read more (1011 words) 163 comments  View Printable Version
Most Recent Post: 08/25 01:43PM by PJ

AutoZone Stirrings
Tuesday, August 19 2008 @ 09:28 PM EDT

Most of the attorneys who are listed as being involved in SCO v. AutoZone have been told that by the court they are in violation of Special Order 109, which is a requirement to participate in the electronic filing system. They are instructed to go to the US District Court for the District of Nevada website and sign up.

It sounds quite alarming, the way it's worded, but trust me, they don't drag them out at dawn and shoot them for this or disbar anyone. It's just the wording of the notice, which is standard. You can find Special Order 109 [PDF], In re: AUTHORIZATION FOR CONVERSION TO CASE MANAGEMENT/ELECTRONIC CASE FILING, here. It's local to Nevada, but it's part of the federal court system switch to digitalization. The Clerk of the Court is responsible to keep the official record, and so there has to be a way to identify when an attorney is who he says, when a document is filed. So this is what it refers to, that they need passwords and such. It also represents their consent to being served electronically.


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Most Recent Post: 08/22 01:57PM by Darigaaz

Judge Lifts Restraining Order: MIT Students Win - Updated
Tuesday, August 19 2008 @ 02:39 PM EDT

Kurt Opsahl of EFF has just announced that the restraining order on the MIT students has been lifted:
Today, Judge George O'Toole lifted the gag order on three MIT students who were sued by the Massachusetts Bay Transportation Authority for discovering a security vulnerability in the MBTA's fare payment system. The Court found that the MBTA was not likely to prevail on the merits of its claim under the federal Computer Fraud and Abuse Act. MBTA had argued that the CFAA, which prohibits the transmission of a program that causes damage to a computer, also covers "verbal transmission," such as talking to people at conferences. Judge O'Toole, however, looked closely at the statute, and held that the CFAA does not apply to security researchers like the students talking to people. More details to follow.

[Update: The MBTA had sought to convert the temporary restraining order into a preliminary injunction to last for five months, to give them time to fix the vulnerabilities -- here's the motion [PDF] -- and that was denied. It's worth reading, this motion, if only to see why this thing swirled out of logical bounds. One issue is that when the MBTA hears the word hacker, they seem to think it means cracker, and they viewed the DefCon conference as a meeting where people go to learn how to break in to other people's stuff, which naturally panicked them. And they seem to imagine that using Wireshark, which used to be called Ethereal, is "illegal activity", as you can read on page 25. Nor did they understand geek humor. Just a real culture clash, with misunderstandings that led to litigation that now seems to be resolvable, now that the MBTA's attorney says he wants to meet with the students, to learn more about their research findings.]

So the attempt to stretch the Computer Fraud and Abuse Act has failed. Please read the statute for yourself, and ask yourself: do you want talking about computers and security to become a crime punishable by fines and imprisonment and subject to FBI and Secret Service oversight? That's what almost just happened. You can find the documents in MBTA v. Anderson here. If you read the MBTA's complaint, you'll find the allegations of violations of the CFAA on page 12. I think you'll find the MBTA interpretation of the statute shocking ("... the damage constitutes a threat to public health and safety... affects a computer system used by a government entity for national security purposes..."). The research was about getting a ride on a subway for free. In any case, the judge didn't buy it, with respect to the restraining order.


read more (819 words) 115 comments  View Printable Version
Most Recent Post: 08/23 08:39AM by Anonymous

Latest News Picks
  • The Veogh Ruling (PDF)
    In dismissing the case Wednesday, U.S. Magistrate Howard Lloyd of San Jose ruled (.pdf) that San Diego-based Veoh -- financially backed by Time Warner and Michael Eisner – complied with the 1998 Digital Millennium Copyright Act's so-called safe harbor provisions. - Wired

  • FACIL contests government practices in the Superior Court
    While most of the developed countries have started, a few years back, migrating their technological infrastructures to Free Software, Quebec's public administration is far behind. In France, hundreds of thousands of desktops used by civil servants have been migrated. In the Netherlands, the public administration, one of the most modern in the world, has decided to forbid the use of proprietary software in the public sector.

    But here in Quebec, despite numerous initiatives, the public administration refuses to communicate and to cooperate. FACIL has decided to bring the matter to court in order for the public market law to be respected.

    PRESS CONFERENCE: Friday, August 29th 2008, 10h30 at 7275, Saint-Urbain, Montreal, office 201. [FACIL's Motion as PDF.] - FACIL website

  • The Private Browsing Feature (UserFriendly)
    Stef: The private browsing feature will apparently be useful to people who need to be surreptitious on a daily basis. - UserFriendly

  • What The Veoh Decision Means For YouTube And Others
    Attorneys representing online video sites around the country are salivating today over the Veoh summary judgment decision ...

    YouTube, which is obviously thrilled with the decision, emailed us the following statement to us from Chief Counsel Zahavah Levine:

    "It is great to see the Court confirm that the DMCA protects services like YouTube that follow the law and respect copyrights. YouTube has gone above and beyond the law to protect content owners while empowering people to communicate and share their experiences online. We work every day to give content owners choices about whether to take down, leave up, or even earn revenue from their videos, and we are developing state-of-the-art tools to let them do that even better."

    The statement by the court that checking every video for infringement isn’t realistic is an important one for Google/YouTube, which has said 13 hours of video content is uploaded every minute on YouTube. If it’s impossible for Veoh to monitor all content, YouTube is going to have an order-of-magnitude larger problem. - Michael Arrington, TechCrunch

  • Man arrested for posting Guns N' Roses songs on Web
    Federal officials on Wednesday arrested a man on suspicion of violating copyright laws for placing songs on the Internet from an unreleased album by rock band Guns N' Roses....

    Cogill, who appeared in court on Wednesday on a charge of unlawfully leaking the songs, faces a maximum of three years in prison if convicted, and five years if it's found that he did it for commercial gain. - Reuters

  • Greens urge end to software patents
    The Green Party has called for an overhaul of patent laws that would prevent software being patented...."Monopolies have been allowed to form, stifling competition, consumer choice, and indigenous growth of the software industry in Aotearoa/New Zealand." - Stuff.co.nz

  • Virus Found On Computer In Space Station
    NASA confirmed on Wednesday that a computer virus was identified on a laptop computer aboard the International Space Station, which carries about 50 computers....

    News that a virus had been identified on the ISS was first reported on Monday by online news site SpaceRef.com, which identified the virus as W32.Gammima.AG worm, malware designed to steal logon information from online gamers.

    [PJ: The W in the name of the virus stands for Windows, because that is the only operating system affected by the virus, according to Symantec and Sophos. Do you think maybe NASA could supply astronauts with one of the new Linux mini-laptops, for safety's sake?] - InformationWeek

  • Quebec government sued for buying Microsoft software
    Quebec's open-source software association is suing the provincial government, saying it is giving preferential treatment to Microsoft Corp. by buying the company's products rather than using free alternatives. - Peter Nowak, CBC News

  • The Microsoft-Novell Deal and Trust in Princes
    What tends to get lost is this: the fact that business is friendly to FOSS does not mean that it has adopted its values. The free software camp's concern with philosophical and political freedom has almost certainly not been adopted by most FOSS-friendly companies, while the open source camp's emphasis on increased software quality is probably shared by middle-management at best. Business --gasp!-- is interested in FOSS to improve the bottom line, and often no other reason.

    [PJ: I put this in News Picks, but not because I agree. I think the community doesn't care if businesses share their values, nor do they expect it. What they *do* expect is that vendors who benefit from FOSS code not actively work against the best interests of the FOSS community. That is the issue, not any of arguments raised in this article, and one the author doesn't address at all.] - Bruce Byfield, ITManagement

  • Verizon and LG sued over visual voicemail patent
    Patent holding company Klausner Technologies Inc. has sued Verizon Wireless and LG Electronics Inc. for infringement of a patent on the visual listing of voicemail.

    New York-based Klausner said late Tuesday that Verizon Wireless' Visual Voicemail and LG's Voyager phone, sold by the carrier, infringe on a patent that covers services through which a user is able to view and retrieve individual voice messages through a menu. Klausner filed suit in the eastern district of Texas.

    [PJ: I told you software and patents need to get a divorce.] - BusinessWeek


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