The SCO Lawsuit: Looking Back 20 Years Later - Slashdot

Posted by EditorDavid

on Monday March 06, 2023 @07:34AM from the long-litigation dept.

"On March 7, 2003, a struggling company called The SCO Group filed a lawsuit against IBM," writes LWN.net, "claiming that the success of Linux was the result of a theft of SCO's technology..."

Two decades later, "It is hard to overestimate how much the community we find ourselves in now was shaped by a ridiculous lawsuit 20 years ago...."

It was the claim of access to Unix code that was the most threatening allegation for the Linux community. SCO made it clear that, in its opinion, Linux was stolen property: "It is not possible for Linux to rapidly reach UNIX performance standards for complete enterprise functionality without the misappropriation of UNIX code, methods or concepts". To rectify this "misappropriation", SCO was asking for a judgment of at least $1 billion, later increased to $5 billion. As the suit dragged on, SCO also started suing Linux users as it tried to collect a tax for use of the system.

Though this has never been proven, it was widely assumed at the time that SCO's real objective was to prod IBM into acquiring the company. That would have solved SCO's ongoing business problems and IBM, for rather less than the amount demanded in court, could have made an annoying problem go away and also lay claim to the ownership of Unix — and, thus, Linux. To SCO's management, it may well have seemed like a good idea at the time. IBM, though, refused to play that game; the company had invested heavily into Linux in its early days and was uninterested in allowing any sort of intellectual-property taint to attach to that effort. So the company, instead, directed its not inconsiderable legal resources to squashing this attack. But notably, so did the development community as a whole, as did much of the rest of the technology industry.

Over the course of the following years — far too many years — SCO's case fell to pieces. The "misappropriated" technology wasn't there. Due to what must be one of the worst-written contracts in technology-industry history, it turned out that SCO didn't even own the Unix copyrights it was suing over. The level of buffoonery was high from the beginning and got worse; the company lost at every turn and eventually collapsed into bankruptcy.... Microsoft, which had not yet learned to love Linux, funded SCO and loudly bought licenses from the company. Magazines like Forbes were warning the "Linux-loving crunchies in the open-source movement" that they "should wake up". SCO was suggesting a license fee of $1,399 — per-CPU — to run Linux.... Such an effort, in less incompetent hands, could easily have damaged Linux badly.

As it went, SCO, despite its best efforts, instead succeeded in improving the position of Linux — in development, legal, and economic terms — considerably.
The article argues SCO's lawsuit ultimately proved that Linux didn't contain copyrighted code "in a far more convincing way than anybody else could have." (And the provenance of all Linux code contributions are now carefully documented.) The case also proved the need for lawyers to vigorously defend the rights of open source programmers. And most of all, it revealed the Linux community was widespread and committed.

And "Twenty years later, it is fair to say that Linux is doing a little better than The SCO Group. Its swaggering leader, who thought to make his fortune by taxing Linux, filed for personal bankruptcy in 2020."