decoration decoration
Stories

GROKLAW
When you want to know more... 		decoration
For layout only
Home
Archives
Site Map
Search
About Groklaw
Awards
Legal Research
Timelines
ApplevSamsung
ApplevSamsung p.2
ArchiveExplorer
Autozone
Bilski
Cases
Cast: Lawyers
Comes v. MS
Contracts/Documents
Courts
DRM
Gordon v MS
GPL
Grokdoc
HTML How To
IPI v RH
IV v. Google
Legal Docs
Lodsys
MS Litigations
MSvB&N
News Picks
Novell v. MS
Novell-MS Deal
ODF/OOXML
OOXML Appeals
OraclevGoogle
Patents
ProjectMonterey
Psystar
Quote Database
Red Hat v SCO
Salus Book
SCEA v Hotz
SCO Appeals
SCO Bankruptcy
SCO Financials
SCO Overview
SCO v IBM
SCO v Novell
SCO:Soup2Nuts
SCOsource
Sean Daly
Software Patents
Switch to Linux
Transcripts
Unix Books

Gear

Groklaw Gear

Click here to send an email to the editor of this weblog.

You won't find me on Facebook

Donate

Donate Paypal

No Legal Advice

The information on Groklaw is not intended to constitute legal advice. While Mark is a lawyer and he has asked other lawyers and law students to contribute articles, all of these articles are offered to help educate, not to provide specific legal advice. They are not your lawyers.

Here's Groklaw's comments policy.

What's New

STORIES
No new stories

COMMENTS last 48 hrs
No new comments

Sponsors

Hosting:
hosted by ibiblio

On servers donated to ibiblio by AMD.

Webmaster
Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
Tuesday, November 04 2003 @ 09:31 AM EST

Novell is buying SuSE Linux. Stephen Shankland reports that Novell has signed to acquire SuSE Linux, with IBM backing it up:
Longtime Microsoft foe Novell has signed an agreement to acquire SuSE Linux for $210 million in cash, while IBM, the most powerful backer of the Linux OS, will make a $50 million investment in Novell. . . .

SuSE is strongest with the open-source software on servers, the networked machines that handle chores such as hosting Web sites and routing e-mail.

The acquisition is expected to close by the end of Novell's first fiscal quarter in January, at which point the IBM investment will become effective, Novell said. IBM plans to buy $50 million of Novell preferred stock.

In addition, IBM and Novell are negotiating an extension to SuSE's agreement to support all four of IBM's server lines and are planning joint marketing and support relationship, the companies said.

Novell--a company that has retained significant rights from its former ownership of Unix--now has a strong vested interest in Linux. SuSE, meanwhile, believes its former alliance with SCO shields it, an assertion SCO denies.

Here is Novell's press release:
"We chose SUSE LINUX because they are a clear market leader in Linux technology for the enterprise," Messman said. "With this acquisition, Novell will be the only billion-dollar software company with a Linux distribution and a worldwide ecosystem around it. A worldwide technical staff of more than 600 has been trained to support Linux. The acquisition of SUSE LINUX completes our technology stack from the desktop to the server."

Beyond the technology, the acquisition will also expand Novell's strategic commitment to the open source community. The combination of SUSE LINUX and Novell will deliver not only complete enterprise Linux software solutions, but also worldwide channels and industry-leading partnerships. The combined company will help promote a thriving, global open source ecosystem that creates innovation and choice for developers, users and organizations alike. Novell is firmly committed to open standards and maintaining the existing open source kernel development efforts. From advocacy and development resources to events and support of open source efforts like kernel projects, XFree86, ReiserFS, KDE, GNOME and Mono, Novell stands side-by-side with the open source community.[emphasis added]

OK, we can exhale now. Except for SCO and Microsoft. Their troubles have just begun.

The press conference can be heard live at 11:00 EST. The lesson to be learned? You don't want IBM mad at you. They fight to win.

Peter Williams adds this detail:

Mike Davis, senior researcher at analyst Butler Group, said Novell had been trying to reposition itself because its NetWare [operating system] was very dated. But he thought IBM's involvement was the most telling element in the deal.

"SuSE became more vulnerable after the SCO Group, which has worldwide offices, pulled out of United Linux. IBM has a great need to maintain viable and strong distributions. So a bit of me says this is directly as a result of SCO's actions," he said.




  


Novell Buys SuSe Linux -- Press Conference 11:00 AM EST | 178 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
One assumes that SuSE has contributed to the kernel
Authored by: Anonymous on Tuesday, November 04 2003 @ 09:40 AM EST
And therefore owns copyrights in it.

Will Novell now sue SCO for copyright infringement now that SCO is willfully violating the GPL with their restrictions on Linux usage?

One can only hope...

[ Reply to This | # ]

Pressconference on TV?
Authored by: keanu on Tuesday, November 04 2003 @ 09:57 AM EST
Does anybody know if any TV station broadcasts this conference?

[ Reply to This | # ]

Indemnification?
Authored by: overshoot on Tuesday, November 04 2003 @ 09:59 AM EST
What was that threat from SCOX against SuSE and its customers?
What was that noise about indemnification of Linux users by their distro supplier?
I daresay that Novell can offer HP-style "we will indemnify you against suits by SCO" without the Mickey Mouse "binary-only" qualifiers, no?

[ Reply to This | # ]

Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
Authored by: Anonymous on Tuesday, November 04 2003 @ 10:25 AM EST
"OK, we can exhale now. Except for SCO and Microsoft. Their troubles have
just begun."

Sort of except that Ximian partnered with SUN in their GNOME desktop work, and
SuSE is known for their KDE work. If Novell can get both camps to start working
together in-house woo-hoo!

[ Reply to This | # ]

Peter Williams link
Authored by: haro on Tuesday, November 04 2003 @ 11:00 AM EST
The correct link is http://www.computing.co.uk/News/1 147159

[ Reply to This | # ]

Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
Authored by: PJ on Tuesday, November 04 2003 @ 11:03 AM EST
Groan. Real Media only. This is not a good beginning.

Can anyone tape it please?

[ Reply to This | # ]

Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
Authored by: bobh on Tuesday, November 04 2003 @ 11:25 AM EST
Five quick thoughts:

  • I would love to know how IBM picked the number "$50 million," and whether they picked it in the last week or so. That number fairly screams to Microsoft, "Call."
  • I can't get too excited about Novell's welcome noises about their commitment to open source. SCO said all the same things at one time, and now look what happened.
  • IBM is not going to repeat the "Microsoft creation mistake." They have been Best Buds with Red Hat, but this time they're going to make sure there are at least two competing suppliers of the "standard operating system."
  • Bill Gates will correctly interpret this as a declaration of war. Since he's the one who pulled the Pearl Harbor trick, he now has to worry that his actions have "awakened a sleeping giant and filled him with a terrible resolve."
  • If Novell has what we think it has in terms of contract leashes on SCO's uses of the UNIX IP, Microsoft and SCO have just been outflanked on one side. If SuSE has what we think it has in terms of cross-licensing agreements with SCO, Microsoft and SCO have just been outflanked on the other side. The reality that SCO's court case was based on no longer exists. Bill and Steve will see this, and will fold the tent.

    • [ Reply to This | # ]

    Red Hat Linux RIP
    Authored by: shadowman99 on Tuesday, November 04 2003 @ 11:30 AM EST
    This is all the more interesting in light of Red Hat's move to discontinue
    internal support for it's original distro. They will only support the
    Enterprise Red Hat distro. The original Red Hat Linux will become a public
    project called Fedora.

    I've been Red Hat user until now, but I just might give Suse Linux a shot. Red
    Hat's focus for security fixes and patches will be it's entrerprise edition.
    That leaves me out in the cold. I don't like that.

    Novell + Suse could shift momentum away from Red Hat.

    [ Reply to This | # ]

    By the way, why is SCOX up $2.39 as of 10:37 CST?
    Authored by: shadowman99 on Tuesday, November 04 2003 @ 11:39 AM EST

    Is Wall Street dumb enough to think SCO benefits from this new Suse/Novell/IBM
    alliance? Or is the market reacting to SCO's BS press release from yesterday?

    Does anybody know what's up?

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST - blacklight
    Authored by: Anonymous on Tuesday, November 04 2003 @ 11:42 AM EST
    While I do have a fair amount of good will toward Novell, I don't think their
    karma over the last few years has been very good. I am crossing my fingers and I
    hope that Novell does not do to SuSE what it did to itself. I have a high regard
    for SuSE, and I hope to be able to maintain such a high regard over the years.

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: bobh on Tuesday, November 04 2003 @ 11:49 AM EST
      You don't want IBM mad at you. They fight to win.

    I am thoroughly impressed by the serious smash-mouth nature of IBM's defenses. If Mr. Gates has any sense, he is beginning to rue the day that he sent some cut-out onto the field to harrass IBM and linux. This is not what he expected to get back.

    The courtroom activities have their place, but IBM is now starting to move the mountains around on the actual terrain to make things tougher for Bill. And they don't need a court's permission to do it... or courtroom-level proof to decide they should do it. In addition to the smash-mouth lawyering, we're now seeing smash-mouth business to go with it. This is far more than Bill expected to get back. This is war.

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: geoff lane on Tuesday, November 04 2003 @ 01:07 PM EST
    I hope it all works out, but historically Novell have tried to break out of
    netware into a new market a number of times and every single time it almost
    killed the company.

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: Anonymous on Tuesday, November 04 2003 @ 01:30 PM EST
    YAHOOOOO!!!!!!

    This is great news - it's a counter-punch to the $50 million investment in SCO from BayStar. Novell is now bound to be a major once again. Let's hope they don't make the same mistakes as SCO.

    I know one thing: my next purchase of an OS will be either Redhat, Mandrake or SuSE. I will happily hand over the $80 asking price for the professional version.

    Ta ta Windoze...

    [ Reply to This | # ]

    GROKLAW IN THE NEWS
    Authored by: Anonymous on Tuesday, November 04 2003 @ 02:05 PM EST
    Here is a link to an article the mentions GROKLAW.

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: Anonymous on Tuesday, November 04 2003 @ 02:06 PM EST
    Those greedy people/organizations would do well to heed this quote a favourite
    movie; "The more you tighten your grip, the more systems will slip through
    your fingers".

    [ Reply to This | # ]

    [OT] Novell-SCO APA
    Authored by: PM on Tuesday, November 04 2003 @ 02:53 PM EST
    Sorry to post here but I need to reach all those involved with typing up the
    text version of the APA. I seem to have landed the job of coordination, so
    please let me know directly what pages people are typing up, and please send me
    the work for collation.

    Thanks
    Peter

    (PJ you can delete this after 24 hours or so).

    [ Reply to This | # ]

    PJ no longer a paralegal
    Authored by: gumout on Tuesday, November 04 2003 @ 03:48 PM EST
    The beuatiful and gracious Pamela Jones is now a senior
    analyst in IT Enterprise Operating Systems. She should be compensated as such.
    Are you out there IBM, Novell and Red Hat?

    ---
    "If people are violating the law by doing drugs, they ought to
    be accused and they ought to be convicted and they ought to
    be sent up." --- Rush Limbaugh

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: Anonymous on Tuesday, November 04 2003 @ 04:35 PM EST
    it's interesting to compare Deutsche Securities [illogical] opinion:

    "negative for RHAT, neutral for MSFT, and neutral-to-positive for SCOX"


    with extremetech.com's view:
    < br> "The Real Loser: Microsoft","...bodes well for SuSE and for Novell...","..smart moves by Novell's and Red Hat's management."

    [ Reply to This | # ]

    IBM investment
    Authored by: Anonymous on Tuesday, November 04 2003 @ 06:35 PM EST
    Perhaps the main reason IBM put 50 million into this is it wants to help SuSE.
    IBM and a lot of other companies don't want RedHat to take over the whole Linux
    server field. That is because then it could pull a Microsoft and cause lots of
    trouble. They want RedHat to have a healthy competitor, and now that
    UnitedLinux is dead, that means SuSE (which was the heart of UnitedLinux,
    anyway). So IBM helps SuSE out and steers business its way.

    Being bought by Novell helps here because SuSE is weak in the US at least in
    part because it lacks a good sales operation there. Novell has a big sales
    force all over the world, and now it can help sell SuSE.

    [ Reply to This | # ]

    Next logical step if this is a declaration of war
    Authored by: roxyb on Tuesday, November 04 2003 @ 07:35 PM EST
    If this is a declaration of war and a collusion between IBM and Novell, expect to see Transgaming and/or Codeweavers being bought by Novell (to complement the current offering of Novell and to attack MS on their home-turf). Imagine WINE and OS/2's WIN32 subsystem combined in a Linux distro...

    Also, I wouldn't be surprised if Wordperfect was swallowed again (or the Lotus suite was fast-ported to Linux and licensed to Novell). This in combination with the above and a the current anti-trust problems MS has, would make it an outright war.

    You may say, that you're not supposed to try to fool around with one of the biggest software companies in the world (i.e. IBM).

    This is pure speculation, of course, and probably off-topic.

    Roland Buresund

    ---
    --
    I'm Still Standing...

    [ Reply to This | # ]

    Novell Buys SuSe Linux - Newsforge article
    Authored by: Thanatopsis on Tuesday, November 04 2003 @ 10:23 PM EST
    Here's a fun read.

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: bobh on Wednesday, November 05 2003 @ 12:10 AM EST
      when it bought rights to Unix caldera/sco got...

    We have all read so many times now that SCO bought "the rights to UNIX" that we are in danger of getting sloppy. That is certainly the impression that SCO wants us to have, but that may be quite an exaggeration on their part.

    It's been some months now since I read the details on this, but my sense is that what Original SCO bought from Novell was, literally, "the UNIXware business." At that time, for sure, no copyrights or patents were transferred. It was not an "intellectual property" transaction. It was more in the nature of Novell selling the opportunity to make money by sublicensing UNIXware in the small- and medium-sized business market (which was the nature of Original SCO's business, so that made sense.)

    It was more like Novell appointing Original SCO a sort of Master VAR that could recruit other VARs.

    To my knowledge, Original SCO never made the sort of sweeping intellectual property claims over UNIX that have been the stock in trade of Darl and his other brother Darl.

    There is also this "story" (I don't know what else to call it) concerning a document which New-SCO produced from a file somewhere that they claim is an amendment to the asset purchase agreement with Novell that transfers the copyrights to them. I've read that thing, and I sure wouldn't go to court with that as my claim to owning UNIX. It doesn't actually transfer anything by name. It's a very vaguely-worded thing that is going to end up, after some energetic litigation, meaning whatever the judge says it means, because it doesn't actually say anything.

    There is also a piece of mystery that is now largely forgotten. When SCO first made the claim that they had the copyrights, Novell came right out and said, "Oh, no you don't." There was then a period when Darl McBride engaged in characteristic bluster with his "document from the file" as his "proof," followed by silence from Novell... except for one comment to the effect that, "this is not over."

    Novell chose not to engage Darl McBride in a bluster-fest in front of the press, and so most people concluded that Novell had capitulated. But I've never believed that. I had the distinct impression that Novell intended to re-visit this issue in front of a judge... they just didn't want to do it as part of McBride's media circus. In fact my right-brain was screaming that IBM had called them up and asked them to go hide in the weeds until the right moment came to spring back out.

    My hunch is that when this all gets litigated, SCO will own nothing of value from the so-called "UNIX IP."

    [ Reply to This | # ]

    Novell Buys SuSe Linux -- Press Conference 11:00 AM EST
    Authored by: Anonymous on Wednesday, November 05 2003 @ 12:56 AM EST
    Did anyone else notice that IBM's investment in Novell is exactly $50million.
    The same amount that came down the pipe to SCO.

    I think this a clear message from IBM.

    [ Reply to This | # ]
    Groklaw © Copyright 2003-2013 Pamela Jones.
    All trademarks and copyrights on this page are owned by their respective owners.
    Comments are owned by the individual posters.

    PJ's articles are licensed under a Creative Commons License. ( Details )     		Site layout based on Woodlands theme by Bryan Bell.
    Groklaw logo by John Crowley.
    News Picks logo by Ted Thompson.
    Powered By GeekLog
    Created this page in 0.04 seconds