SCO versus Linux: who will win?

It's been a tumultuous week in the saga of SCO versus IBM and Linux.

The software supplier, who claims its source code has been copied into the open-source operating system, wants to sell users a licence for installing Linux.

But IBM and Red Hat have finally come out fighting. Both are resorting to the law as the argument decends into litigation and counter-litigation, threatening to extend the uncertainty for months or even years.

Should Linux users be worried? Computing looks at the issues.

SCO owns the copyright to Unix System V, the basis for many popular versions of the operating system such as IBM's AIX and Sun Microsystems' Solaris. The supplier claims that IBM allowed Unix source code to be copied into version 2.4 of the Linux kernel to improve its multiprocessing capabilities.

In June, SCO terminated IBM's Unix licence and sued Big Blue for $3bn for breach of contract. IBM says its licence is 'irrevocable, perpetual and fully paid up.' SCO claims that AIX users are now running the system illegally.

SCO says that companies running Linux must buy a licence, because it includes copyrighted code. Last week, SCO chief executive Darl McBride announced prices for the controversial licence: $699 per processor until October, rising thereafter to $1,399.

Andy Butler, research director at Gartner, says SCO is being 'opportunistic.'

'Users should not start waving their cheque books as there is no legal precedent for what SCO is demanding and it is not clear what laws have been broken,' he said.

Nobody has been able to validate SCO's claims. The company is reluctant to open up its source code, claiming this may cause further copying. Selected IT analysts have seen glimpses of SCO's evidence, but opinions are mixed. McBride claims Linux contains 'line-by-line copy' of Unix code, including developers' comments and even jokes.

IBM's counter-claim is that because SCO distributed a version of Linux under the GNU Public Licence that governs open-source developments, it can't claim ownership of any part of the software. IBM also claims SCO violated four of its patents.

Red Hat launched a 'put up or shut up' lawsuit to force SCO to prove its case or withdraw its accusations.

'We are going on the offensive,' said Red Hat chief executive Matthew Szulik.

The Open Source Development Lab (OSDL) - the employer of Linux creator Linus Torvalds - claims that SCO has no right to license users. In a report 'Questioning SCO: A Hard Look at Nebulous Claims,' written by copyright expert Professor Eben Moglen, OSDL says copyright law is not relevant to customers 'using' Linux any more than it applies to someone reading a book.

SCO rejects the claim: 'Copyright absolutely applies. For the same reason that a commercial user must have a valid licence to run Microsoft Word, a user must also have a valid licence to run our Unix source code.'

Analysts warn users to stay alert to the unfolding drama.

'While the actions by SCO are pending, take a go-slow approach to Linux in high-value or mission-critical production systems,' said Gartner research director George Weiss.

Giga Information Group analyst Stacey Quandt describes SCO's tactics as 'brinkmanship.'

'If users remain committed to their AIX and/or Linux deployments then SCO's tactic to use customer pressure to bring IBM to its knees will be unsuccessful,' she said.

Gary Barnett, principal consultant at Ovum, says IBM's decision to counter-sue is significant.

'IBM has more money and more lawyers than SCO. SCO will be bled dry before it can make its case,' he said.

So far, SCO has not attempted legal action against users of Linux or AIX. The company's claims have yet to be tested in court. IBM and the open-source community will continue to develop and support AIX and Linux, so day-to-day use of the software is unlikely to be affected. But the momentum behind the growth of Linux could be slowed if wary users delay or avoid installing the operating system. Microsoft will be quietly smiling at the prospect.

SCO's case against IBM is not due in court until April 2005. The question for the IT industry is whether it can wait another 18 months to clear up the uncertainty. At the moment, none of the players show any sign of backing down.

'When you look inside in the [Linux] code base and you see line-by-line copy of Unix System V code, not just the code itself but comments to the code, titles that were in the comments and humour elements that were in the comments, you see that everything is taken straight across.'

SCO chief executive Darl McBride

'They are extortionists.'

Linus Torvalds, creator of Linux

'SCO is basically a company full of lawyers.'

Ron Wohl, executive vice president, applications development, Oracle

'SCO is trying to derail the Linux train.'

Andy Butler, research director at analyst Gartner

'We will ignore SCO's demands and wait and see what happens.'

Red Hat customer Adrian James, IT director at Reliance Mutual

'Unlike SCO, IBM has been very careful not to make inflammatory statements. So when IBM fires a broadside it is a very carefully prepared action, which will be very carefully executed.'

Gary Barnett, principal consultant at analyst Ovum

'SCO has brought our customers into this process. It is threatening them with extortion from unfounded and baseless claims and we had to step forward on their behalf to establish the truth.'

Matthew Szulik, chairman and chief executive of Red Hat

'We applaud Red Hat's efforts to restrict the rhetoric of the SCO Group, and the fear, uncertainty and doubt which they are trying to instil.'

Statement from Linux vendor SuSE

'SCO's failure to come forward with evidence of any infringement of SCO's legal rights is suspicious in itself.'

Professor Eben Moglen, copyright expert from the Open Source Development Lab

Additional reporting by vnunet.com

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