SCO is currently saying defamatory things about Linux, that it is ruinous to the economy, a security risk because it's available over the internet, and a threat to capitalism because it is released under the GPL license, which it laughably claims is violative of copyright law. I was thinking back to when SCO first began, when it was named Caldera, and when substantially all of its revenues were derived from sales of Linux products and related services, and I thought it would be interesting to see what Caldera had to say about Linux back when it was trying to get people to invest in the company when it first went public in January, 2000. What the company said about Linux then in their S-1 filing with the SEC is exactly the opposite of what the company, now named SCO Group, is telling Congress about Linux now. The two positions are mutually exclusive. Which is the truth? Was what they filed with the SEC not truthful information? If so, what about the millions they raised? Or are they being less than honest now? Or is it this simple, that when they wanted to make money from Linux, it was the best thing for US business since white bread and now when they think they can make money attacking Linux, it's the wicked witch of the north? The hypocrisy is palpable.
So you can see for yourself, here are some excerpts from that S-1, filed with the SEC on January 10, 2000. It's quite long, even though I collected only excerpts about Linux, but that's because they had a lot of good things to say about Linux, and they raised a great deal of money saying these good things. They acknowledge making money from Linus Torvalds' work and depending upon him and his helpers. They not only sold Linux, they taught it as a part of their business, so if there are a lot of folks who know how to use Linux, they helped to make that happen. They also list all the standards groups and Linux fostering groups they belonged to, including the Trillian project. And they state they released their products under the GPL. Attached to the S-1 are all the contracts and license agreements they then used, including the GPL, quoted in full, as you will see. Additionally, the Evergreen contract includes this clause: "3.10 GNU General Public License
Both parties understand that Linux and certain software in eBuilder are
or may be subject to or governed by the applicable GNU General Public
License and/or other applicable open source agreements, and nothing in
this Agreement or the Business Alliance shall require either party to
act in contradiction of the applicable GNU General Public License and/or
other applicable open source agreements. . . .
"3.13 OpenLinux for eBuilder is licensed, not sold.
The Linux kernel and
any other GNU General Public License software or open source software
are distributed pursuant to and governed by the applicable GNU General
Public License or open source software agreement." There is also in one of the contracts, the one with Evergreen, a notification that the Linux products were not to be made available to countries such as North Korea, which reads like this: "IMPORTANT NOTICE: THIS SOFTWARE OR ANY UNDERLYING INFORMATION OR ANY
UNDERLYING TECHNOLOGY MAY NOT BE DOWNLOADED, DISTRIBUTED OR OTHERWISE
EXPORTED OR RE-EXPORTED OUTSIDE THE UNITED STATES (OR CANADA) OR TO ANY
FOREIGN ENTITY OR "FOREIGN PERSON" AS DEFINED BY U.S. GOVERNMENT
REGULATIONS. INCLUDING WITHOUT LIMITATION ANYONE WHO IS NOT A CITIZEN,
NATIONAL, OR LAWFUL PERMANENT RESIDENT OF THE UNITED STATES (OR CANADA)
OR TO ANYONE ON THE U.S. TREASURY DEPARTMENT'S LIST OF SPECIALLY
DESIGNATED NATIONALS OR ON THE U.S. COMMERCE DEPARTMENT'S TABLE OF
DENIAL ORDERS OR ENTITY LIST, OR INTO (OR TO A NATIONAL OR RESIDENT OF)
CUBA, IRAQ, LIBYA, NORTH KOREA, IRAN OR ANY OTHER COUNTRY TO WHICH THE
U.S. EMBARGOES GOODS. BY DOWNLOADING OR USING THIS SOFTWARE, YOU AND
YOUR COMPANY ARE AGREEING TO ABIDE BY THE FOREGOING AND ARE WARRANTING
THAT YOU AND YOUR COMPANY ARE NOT A FOREIGN PERSON OR FOREIGN ENTITY
(OTHER THAN A CANADIAN PERSON OR CANADIAN ENTITY) OR UNDER THE CONTROL
OF A FOREIGN PERSON OR FOREIGN ENTITY (OTHER THAN A CANADIAN PERSON OR
CANADIAN ENTITY)." So SCO knows full well that the charge they have just sent in a letter to Congress that Linux is made available to anyone in the world, even to embargoed countries like North Korea, is a lie. With that introduction, here are excerpts from Caldera's first SEC filing. *********************************************
OUR BUSINESS
Caldera Systems, Inc. enables the development, deployment and management of
Linux specialized servers and Internet access devices that simplify computing.
Our Linux software products and service offerings are specifically designed to
meet the complex needs of eBusiness, or business over the Internet. We employ
commercial software development practices in producing our Linux products by
assembling open source code so that it is logically arranged and then rigorously
testing for quality and performance. Our use of this process, known as
self-hosting, is unique in the Linux community and gives our products a high
level of stability and reliability. During 1999 our OpenLinux technology
received many awards and recognitions including Internetweek's "Best of the
Best," The Linux Show's "Best Distribution of Millennium," Linux Journal's
Product of the Year award at Comdex and Network Computing's Well-Connected Award
for Best Network Operating System.
We complement our product offerings with value-added services. We offer a
comprehensive, distribution-neutral education and training for Linux. A student
who has successfully completed our courses will be proficient with the leading
distributions, or versions, of Linux. Other services that we offer include
technical support to assist end users during installation and operation of our
products, consulting and custom development, optimization and certification for
specific hardware platforms and documentation on Linux usage. . . . MARKET OPPORTUNITY
The Internet has accelerated the introduction of processes for managing
information, providing services and solutions and handling customers and has
changed the way software applications are developed and deployed. The Internet
has also enabled and accelerated a trend towards distributed software
applications. This has led to a rise of thin appliance servers, or specialized
servers. Dataquest projects that the worldwide market for thin appliance servers
will grow from approximately $2.2 billion in 1999 to approximately $16.0 billion
by 2003. In addition, low cost Internet access devices, such as personal digital
assistants and television set-top boxes, are emerging to allow more users the
ability to participate in eBusiness.
This new eBusiness computing environment requires an operating system that
can accommodate its accelerated evolution. Linux, with its comprehensive
Internet functionality, flexibility and customizability, high scalability,
stability, interoperability with multiple systems and networks and
multi-appliance capability is an optimal operating system for eBusiness.
International Data Corporation projects the total market for Linux shipments
will increase at a compound annual growth rate of 25% from 1999 to 2003. Also,
Dataquest has predicted that Linux thin servers will account for approximately
$3.8 billion in server appliance revenues by 2003. However, historically,
business users have lacked a Linux solution that is specifically tailored for
eBusiness. We seek to fulfill this need with our solution for eBusiness.
OUR STRATEGY
Our goal is to become the leading provider of Linux for eBusiness. Key
elements of our strategy to achieve this goal include:
- providing Linux software for specialized servers and Internet access
devices, which are becoming key components in the new eBusiness
environment;
- remaining committed to our research and development effort and staying
abreast of the fast changing eBusiness environment;
- increasing our channel presence in Linux, which has given us a head
start in accessing the business community with our Linux products;
- leveraging our technology, marketing and distribution partners to
facilitate faster growth;
- facilitating the adoption of Linux for eBusiness through education and
training;
- establishing our Web site as the one-stop center for eBusiness; and
- expanding our international presence to take advantage of growing market
opportunities.
WE RELY ON INDEPENDENT DEVELOPERS IN THE OPEN SOURCE COMMUNITY, SUCH AS LINUS
TORVALDS, IN ORDER TO RELEASE UPGRADES OF OUR LINUX-BASED PRODUCTS.
Many of the components of our software products, including the Linux
kernel, the core of the Linux operating system, are developed by independent
developers in the open source community and are available for inclusion in our
products without cost. Linus Torvalds, the original developer of the Linux
kernel, and a small group of independent engineers are primarily responsible for
the development and evolution of the Linux kernel. Neither Mr. Torvalds nor any
significant contributor to the Linux kernel is
an employee of ours. If these independent developers and others in the open
source community do not further develop the Linux kernel and other open source
software included in our products on a timely basis, or at all, our ability to
enhance our product offerings will suffer. As a consequence, we will be forced
to rely to a greater extent on our own development efforts or license commercial
software products as replacements, which would increase our expenses and delay
enhancements to our products. . . .
Substantially all of our revenues since fiscal 1996 have been derived from
sales of Linux products and related services. We expect that for the foreseeable
future the majority of our revenues will continue to be derived from our
OpenLinux product line, while revenues from our service offerings including
training, customer support, and consulting will increase as a percentage of
revenue.
BUSINESS
OVERVIEW
Caldera Systems, Inc. enables the development, deployment and management of
Linux specialized servers and Internet access devices that simplify computing.
Our Linux software products and service offerings are specifically designed to
meet the complex needs of eBusiness, or business over the Internet. During 1999
our OpenLinux technology received many awards and recognitions, including
Internetweek's "Best of the Best," The Linux Show's "Best Distribution of
Millennium," Linux Journal's Product of the Year award at Comdex and Network
Computing's Well-Connected Award for Best Network Operating System. We
facilitate the adoption of Linux by providing educational programs designed to
help our customers to develop, deploy and administer Linux systems. We embrace
the open source model and participate as a key member of many open source,
industry standards and partner initiatives, including Linux Professional
Institute, Linux Standards Base and Linux International Group. . . . The dynamic and
fast changing nature of eBusiness requires an operating system, the software
that enables a computer and its various components to interact, that can change
with the accelerated evolution of eBusiness. The ideal operating system must
enable companies to connect specialized servers and Internet access devices to
the Internet network to conduct eBusiness. It must be customizable to adapt to
the changing software applications environment, shifting hardware
infrastructures and emergence of new Internet access devices. It must be
scalable to accommodate the growing number of users and the ways that they
access the Internet. The ideal operating system must be highly stable and easy
to maintain to minimize overall operating and maintenance costs. It must allow
for rapid deployment and development and be easily upgradeable to keep pace with
the changing needs of eBusiness. Finally, this operating system must interface
with existing systems and embrace open technical and communications standards
like Java and extensible mark-up language, or XML, to take full advantage of the
Internet.
Linux is an optimal operating system for eBusiness. The term open source
applies to software that has its internal source code open to the public for
viewing, copying, examining and modification. As a result, the Linux source code
is available for download over the Internet. Open source code allows thousands
of developers around the world to continually collaborate to improve and enhance
the software. The Internet has facilitated and greatly enhanced this
collaborative environment. In fact, IDC has projected that the total market for
Linux shipments will increase at a compound annual growth rate of 25% from 1999
through 2003. Also, Dataquest has predicted that Linux thin appliance servers
will account for approximately $3.8 billion in server appliance revenues by
2003. Benefits of Linux include:
- comprehensive Internet functionality;
- flexibility and customizability;
- high scalability;
- stability;
- interoperability with multiple systems and networks;
- multi-appliance capability, including Internet access devices;
- low acquisition and maintenance costs; and
- compliance with technical and communications standards. . . .
CALDERA SYSTEMS SOLUTION
We enable the development, deployment and management of Linux specialized
servers and Internet access devices that simplify computing. We believe that our
Linux solution is a comprehensive solution for eBusiness. Key benefits of our
solution include:
Focused business framework. We were the first to tailor Linux open source
code from various sources into sound discrete products that are usable,
deployable and manageable for eBusiness. Our development team consists of
experienced Linux engineers and business professionals. We develop our products
by first carefully choosing the Linux features that are the most relevant and
useful for eBusiness. Then we assemble the code so that it is logically arranged
and works together as seamless applications in which source and binary code
match for logic and order. Our products are then tested for quality and
performance. This enhances reliability and reduces the need for technical
support when used under strenuous business conditions. This process, known as
self-hosting, is unique in the Linux community and accounts for the high levels
of stability and performance of our products. Our products are also designed to
be interoperable with multiple platforms to enable businesses to make efficient
use of existing information technology investments. . . .
Comprehensive, distribution-neutral education and training. Many companies
are delivering different versions of Linux called distributions. We provide a
comprehensive distribution-neutral training program for Linux. Our courses focus
on educating and training the business community on Linux's benefits for
business use. We offer a comprehensive set of courses designed to prepare
students to develop, deploy and manage Linux in a business environment,
including system, network and Internet administration and programming. A student
who has successfully completed our courses will be proficient with the leading
distributions of Linux. We offer high-quality instructor-led training through
our own training center at our headquarters and also offer our educational
programs indirectly through our Authorized Linux Education Centers, or ALECs,
around the world.
Business community catalyst and open source advocate. We were the first
Linux provider to introduce an open source operating system designed for the
business environment. By demonstrating to key information technology companies
such as Corel and Netscape that open source systems can work well with
proprietary systems, we believe that we have sparked the interest of more
conservative technology adopters and accelerated acceptance of Linux for
business use. We help port, or convert, business applications to the Linux
platform and offer ways to incorporate those products into existing systems. We
are a major driver of Linux standards based initiatives such as Linux
Professional Institute, or LPI, an independent organization dedicated to the
establishment of professional certification standards for Linux professionals,
and Linux Standards Base, or LSB, an initiative that is designed to standardize
application development for the Linux platform. An application that meets all
the criteria for LSB should work on all compliant distributions of Linux. If LSB
is widely adopted, we believe it will significantly reduce the fragmentation of
Linux.
We fully embrace the open source model and continuously contribute tools
and technology to the open source community. We give away CD ROMs containing our
Linux operating system at trade shows and allow it to be freely downloaded from
the Internet to encourage interest. . . .
We foster multiple development projects over
the Internet and help each project progress smoothly.
CALDERA SYSTEMS STRATEGY
Our goal is to become the leading provider of Linux solutions for
eBusiness. Key elements of our strategy to achieve our goal include:
Providing Linux software for specialized servers and Internet access
devices. By providing focused Linux business solutions that simplify systems
management, increasing interoperability and improving ease of use, we have the
goal of becoming the number one provider of Linux eBusiness products. We are a
leader in applying commercial development practices to Linux, resulting in Linux
products that can be more easily deployed and managed. We intend to facilitate
the proliferation of highly customized,integrated Linux business solutions by offering both a Linux client and server
product and further optimization and certification services to solution
providers and end users. In addition, during the first half of 2000 we plan to
release eBuilder, an open standards, component-based eBusiness framework,
written in Java for the Linux environment. eBuilder is designed to provide
businesses with the ability to incorporate existing software applications, file
directories and databases into workable eBusiness solutions, such as Web
storefronts.
Remaining committed to research and development. We are committed to
continuing our research and development efforts to enhance our products to be
efficient and effective platforms for delivering eBusiness solutions. Our
primary focus will be to design and implement the software that will allow
organizations to install and manage these Linux systems in a flexible and cost
effective manner. We will contribute time and technology to various industry
initiatives to expand the range of computing hardware on which our products can
be offered. Additionally, we will support and seek to influence technology
standards that will expand the scope in which our products can be sold and
deployed. We are committed to the open source model for software development and
will work to contribute much of our efforts to the open source development
community. We will continually seek out new innovative solutions to address the
needs of our customers and the evolution of the marketplace.
Increasing our channel presence in Linux. We believe that the best way to
reach the business user is through solution providers. Solution providers will
be invaluable in providing turnkey solutions and local support for specialized
servers. We plan to enhance our product and service offerings to solution
providers by introducing new products for eBusiness, increasing the reach of our
education and training services and expanding resources for solution providers
on our Web site.
Leveraging partners for growth. We believe that in order for us to
accelerate our growth, we must enlist the help of partners to promote our brand,
proliferate our products and provide us with valuable feedback. Through our
partner programs, we plan to provide our partners with appropriate knowledge,
tools and certifications to effectively implement our solutions for eBusiness.
This will increase awareness of Caldera Systems and our extended network of
partners, thus increasing the end user's confidence in us and Linux as a viable
business platform. We intend to expand our partner programs for:
- developers;
- independent software vendors, or ISVs;
- original equipment manufacturers;
- hardware vendors;
- system integrators;
- value-added resellers;
- distributors;
- retailers;
- education providers (ALECs); and
- Web partners.
Facilitating the adoption of Linux for eBusiness through education and
training. In addition to simply selling educational products, our strategy is to
educate our partners on how to deploy, manage and administer Linux solutions. As
these partners train other users, we expect increased sales referrals. We plan
to expand our ALEC channel through industry partnerships to help establish
market share. In addition, we plan to expand our educational offerings through
Web-based classroom training, academic textbooks and training materials, and to
develop additional courses to maintain our leadership in Linux educational
products. Finally, we plan to expand our partnerships to include universities,
course developers, communities and other institutions who may offer
opportunities to increase exposure of Linux.
Establishing our Web site as the one-stop center for eBusiness. We intend
to continue to enhance our Web site to provide a one-stop center for eBusiness.
We expect that this will attract Linux business users, particularly those from
small to medium businesses, as well as the business users who contemplate using
Linux but lack the confidence that there will be sufficient education, products
and support. We plan to expand our Web site as an electronic channel for our
solution providers by providing information, sales and service leads.
Expanding our international presence. We currently have distribution
channel representation in 47 countries to take advantage of what we believe will
be high international demand for Linux business solutions. We plan to continue
to penetrate the international market by recruiting local distributors and
solution providers in each region, leveraging their access to the surrounding
community, and by reaching partners to proliferate our brand and products. These
partners will begin to generate momentum for our products and services as the
international markets become educated about our solutions. Local partners will
also be able to add value and customize our products and Web site to meet local
language and regulatory requirements. As our international penetration
continues, we plan to expand our support resources to overcome time zone and
language barriers as we are now doing in Germany and Japan.
PRODUCTS
We develop, market and support Linux products and solutions specifically
designed to meet the complex needs of eBusiness. According to PC Data, during
the period from January 1, 1999 through October 31, 1999, Caldera Systems was
third in sales of Linux operating systems in the United States, both in terms of
units sold and aggregate dollar amount. Our products and solutions integrate
both commercial and open source software products developed by us and third
parties. For example, we have included applications that we have open sourced,
such as LInux wiZARD (LIZARD), our award-winning graphical Linux step-by-step
installation tool. We apply development and testing procedures to the open
source code included in our products similar to those procedures applied to
commercial products. This process known as self-hosting is unique in the Linux
community and accounts for the high levels of stability and performance of our
products. Our rigorous development procedures result in a highly consistent
product that enables easier and more rapid customization, integration and
support of our solutions. Our products are designed to work both individually
and together to provide a rapidly expandable platform as enterprises extend
their eBusiness infrastructure.
OpenLinux 2.3
We first released our principal product, OpenLinux, a Linux operating
system, in 1995. We began shipping the latest release, OpenLinux 2.3, in
September 1999. OpenLinux 2.3 is an integrated and pre-tested collection of
approximately 300 business-relevant third-party software components, which
provide for a variety of functions that can be utilized either on a single
desktop computer or in a networked environment. We have historically developed
OpenLinux for the first time Linux user, which predominantly has come from a
Windows, desktop environment. OpenLinux 2.3 is currently available for the Intel
and Sun SPARC platforms. According to Ziff-Davis, in laboratory tests, OpenLinux
was 50% faster than any other Linux product in Web server performance and 200%
faster than Windows NT at file and print services. We believe that these
performance results are largely due to our self-hosting approach.
The suggested retail price for packaged OpenLinux 2.3 is $49.95. . . .
OpenLinux 2.3, in the next release, will be renamed OpenLinux Desktop to
reflect its emphasis for desktop.
OpenLinux eServer 2.3
OpenLinux eServer 2.3 is targeted at solution providers, system integrators
and resellers who provide specialized, thin and high-end servers to their
customers. eServer supports server-oriented hardware. It is a component-based
server operating system designed for OEMs, solution providers, system
integrators and resellers and makes Linux server solutions easy to install,
configure and operate. It is readily customizable and, in particular, has been
developed for use by AST Computers, Fujitsu and Motorola. OpenLinux eServer 2.3
has been shipped to strategic partners such as Fujitsu, IBM and Motorola and
will be generally available in the first quarter of 2000.
eBuilder
We plan to release our eBusiness framework, eBuilder, in the first half of
2000. eBuilder is one of the first fully open standards, component-based
eBusiness frameworks written in Java for the Linux environment. eBuilder can be
used to develop ecommerce components, packages and processes. These packages and
processes can be re-used in multiple client environments. eBuilder utilizes Java
to introduce plug-and-play capability into an environment for a business'
existing software applications, file directories and databases. eBuilder is Java
and CORBA compliant, utilizes XML for data encapsulation and is Enterprise Java
Bean compliant. The eBuilder framework, coupled with eServer, will provide
solution providers the ability to transform traditional products and services
into integral components of a comprehensive eBusiness solution, allowing them to
provide new eBusiness services to their existing customers without requiring
them to totally replace their existing business solutions.
SERVICES
Linux Education and Training Services
Our educational programs and products are designed to help our customers
learn to develop, deploy and administer Linux systems. Our courses provide
preparation for Linux certification tests being provided by the Linux Professional Institute, an independent organization. We provide the
most comprehensive distribution-neutral training program for Linux.
We provide Linux training through our training center in Orem, Utah and
through 24 ALECs located in the United States and abroad. ALECs are independent
centers that we have authorized to provide courses that we have developed.
Currently, we offer eight separate courses relating to Linux training and
network administration, which are categorized by their educational objective.
The three categories of courses we provide allow multiple educational tracks,
including:
- Linux certification;
- system administration; and
- Linux developer training.
The suggested retail price for our non-developer courses is $1,995.
Developer courses have a suggested retail price of $2,250.
eBusiness Consulting, Custom Development and Optimization Services
Our eBusiness consulting services stem from our experience testing and
integrating software products to work in a Linux environment. We assist ISVs and
solution providers by helping them in creating customized Internet solutions
which they can then pass along as products and solutions for their customers.
Examples of the eBusiness consulting services we provide include:
- Customization and optimization of our products to support a client's
proprietary system or configuration. Fees for this service start at
$10,000.
- Assessment services relating to the proposed migration of a client's
software for use with Linux. Fees for this service start at $3,000.
- Porting services for customers migrating their software to Linux. Fees
are billed on a daily, weekly or monthly basis. . . .
INDUSTRY PARTICIPATION
We participate as a key member of many industry standard, partner and open
source initiatives, including the following:
- Linux Professional Institute, an independent organization dedicated to
the establishment of professional certification standards for Linux
professionals;
- Linux Standards Base, a Linux community initiative dedicated to
addressing problems and defining standards associated with the many
versions of Linux distributions currently in the marketplace;
- Linux Internationalization Group, a voluntary Linux community working
group, of which we are one of the founding members, dedicated to
addressing interoperability, internationalization and localization of
Linux applications in the international context;
- The Trillian Project, an Intel-sponsored initiative to port the Linux
kernel to the Intel Itanium processor;
- Distributed Management Task Force, an independent organization including
most of the largest software and systems vendors in the world, dedicated
to creating new standards for computer systems management. We are working
with this task force to incorporate into our OpenLinux products
commonality standards already in place among enterprise-level businesses;
and
- Java, Sun Microsystem's proprietary software programming language. We
plan to incorporate standards that will allow the majority of current
Java applications to run on Linux and to provide for developers to create
new applications in Java for use on Linux.
SALES, MARKETING AND DISTRIBUTION
Our focus on Linux for eBusiness enables us to promote the development,
deployment, and management of Linux appliances and devices that facilitate the
eBusiness infrastructure. Our primary strategy is to distribute our products and
services through our indirect distribution channel model. . . .
Our Web site, www.calderasystems.com, is focused on strengthening our Linux
for eBusiness strategy. In addition to allowing visitors to download free
software, our Web team is expanding our current Web strategy of branding, direct
sales through our online store and linking customers to channel partners.
Through our Web site, we plan to join together ISVs, hardware partners,
customers, channel players, developers, ISPs and other Linux players who want to
connect for business reasons and to generate royalties based on introductions,
advertising and transactions. . . .
Certain components of OpenLinux have been developed and made available for
licensing under the GNU General Public License and similar licenses, which
generally allow any person or organization to copy, modify and distribute the
software. The only restriction is that any resulting or derivative work must be
made available to the public under the same terms. Therefore, although we retain
the copyrights to the code that we develop ourselves, due to the open source
nature of our software products and the licenses under which we develop and
distribute them, our collection of trademarks constitutes our most important
intellectual property. . . .
RELATIONSHIP WITH CALDERA, INC.
We began operations in 1994 as a business unit comprising substantially all
of the operations of Caldera, Inc. In July 1996, through an asset purchase,
Caldera, Inc. acquired an additional business unit which was not engaged in
developing and marketing Linux software. Caldera, Inc. subsequently made the
strategic determination to separate its two business lines into separate
entities. Therefore, pursuant to an Asset Purchase and Sale Agreement dated as
of September 1, 1998, as amended, by and between Caldera, Inc. and Caldera
Systems, Inc., Caldera, Inc. sold to Caldera Systems certain assets of its Linux
software business unit for $19.9 million, $15.0 million of which was paid in the
form of a cash payment in fiscal year 1999, $36,174 of which was in the form of
assumption of liabilities and $4.9 million of which was in the form of
forgiveness of a note receivable from Caldera, Inc.
On September 1, 1998, we entered into a sublease with Caldera, Inc. for
office space in Orem, Utah. The sublease provides for annual rent of
approximately $150,000 and terminates August 31, 2000.
Ralph J. Yarro III, chairman of our board of directors, and Raymond J.
Noorda, one of our directors, are directors of Caldera, Inc. Caldera, Inc. is
majority-owned by The Canopy Group, Inc. which holds more than 5% of our common
stock. The Noorda Family Trust, of which Mr. Noorda and his spouse are
co-trustees, is the controlling stockholder of The Canopy Group, Inc. . . .
EXHIBIT 10.14
GNU GENERAL PUBLIC LICENSE
Version 2, June 1991
Copyright (C) 1989, 1991 Free Software Foundation, Inc.
59 Temple Place, Suite 330, Boston, MA 02111-1307 USA
Everyone is permitted to copy and distribute verbatim copies of this
license document,
but changing it is not allowed.
Preamble
The licenses for most software are designed to take away your freedom to
share and change it. By contrast, the GNU General Public License is intended to
guarantee your freedom to share and change free software--to make sure the
software is free for all its users. This General Public License applies to most
of the Free Software Foundation's software and to any other program whose
authors commit to using it. (Some other Free Software Foundation software is
covered by the GNU Library General Public License instead.) You can apply it to
your programs, too.
When we speak of free software, we are referring to freedom, not price.
Our General Public Licenses are designed to make sure that you have the freedom
to distribute copies of free software (and charge for this service if you wish),
that you receive source code or can get it if you want it, that you can change
the software or use pieces of it in new free programs; and that you know you can
do these things.
To protect your rights, we need to make restrictions that forbid anyone to
deny you these rights or to ask you to surrender the rights. These restrictions
translate to certain responsibilities for you if you distribute copies of the
software, or if you modify it.
For example, if you distribute copies of such a program, whether gratis or
for a fee, you must give the recipients all the rights that you have. You must
make sure that they, too, receive or can get the source code. And you must show
them these terms so they know their rights.
We protect your rights with two steps: (1) copyright the software, and (2)
offer you this license which gives you legal permission to copy, distribute
and/or modify the software.
Also, for each author's protection and ours, we want to make certain that
everyone understands that there is no warranty for this free software. If the
software is modified by someone else and passed on, we want its recipients to
know that what they have is not the original, so that any problems introduced by
others will not reflect on the original authors' reputations.
Finally, any free program is threatened constantly by software patents. We
wish to avoid the danger that redistributors of a free program will individually
obtain patent licenses, in effect making the program proprietary. To prevent
this, we have made it clear that any patent must be licensed for everyone's free
use or not licensed at all.
The precise terms and conditions for copying, distribution and
modification follow.
GNU GENERAL PUBLIC LICENSE
TERMS AND CONDITIONS FOR COPYING, DISTRIBUTION AND MODIFICATION
0. This License applies to any program or other work which contains a notice
placed by the copyright holder saying it may be distributed under the terms of
this General Public License. The "Program", below, refers to any such program or
work, and a "work based on the Program" means either the Program or any
derivative work under copyright law: that is to say, a work containing the
Program or a portion of it, either verbatim or with modifications and/or
translated into another language. (Hereinafter, translation is included without
limitation in the term "modification".) Each licensee is addressed as "you".
Activities other than copying, distribution and modification are not
covered by this License; they are outside its scope. The act of running the
Program is not restricted, and the output from the Program is covered only if
its contents constitute a work based on the Program (independent of having been
made by running the Program). Whether that is true depends on what the Program
does.
1. You may copy and distribute verbatim copies of the Program's source code as
you receive it, in any medium, provided that you conspicuously and appropriately
publish on each copy an appropriate copyright notice and disclaimer of warranty;
keep intact all the notices that refer to this License and to the absence of any
warranty; and give any other recipients of the Program a copy of this License
along with the Program.
You may charge a fee for the physical act of transferring a copy, and you
may at your option offer warranty protection in exchange for a fee.
2. You may modify your copy or copies of the Program or any portion of it,
thus forming a work based on the Program, and copy and distribute such
modifications or work under the terms of Section 1 above, provided that you also
meet all of these conditions:
a) You must cause the modified files to carry prominent notices stating
that you changed the files and the date of any change.
b) You must cause any work that you distribute or publish, that in whole
or in part contains or is derived from the Program or any part thereof, to be
licensed as a whole at no charge to all third parties under the terms of this
License.
c) If the modified program normally reads commands interactively when
run, you must cause it, when started running for such interactive use in the
most ordinary way, to print or display an announcement including an appropriate
copyright notice and a notice that there is no warranty (or else, saying that
you provide a warranty) and that users may redistribute the program under these
conditions, and telling the user how to view a copy of this License. (Exception:
if the Program itself is interactive but does not normally print such an
announcement, your work based on the Program is not required to print an
announcement.)
These requirements apply to the modified work as a whole. If identifiable
sections of that work are not derived from the Program, and can be reasonably
considered independent and separate works in themselves, then this License, and
its terms, do not apply to those sections when you distribute them as separate
works. But when you distribute the same sections as part of a whole which is a
work based on the Program, the distribution of the whole must be on the terms of
this License, whose permissions for other licensees extend to the entire whole,
and thus to each and every part regardless of who wrote it.
Thus, it is not the intent of this section to claim rights or contest your
rights to work written entirely by you; rather, the intent is to exercise the
right to control the distribution of derivative or collective works based on the
Program.
In addition, mere aggregation of another work not based on the Program
with the Program (or with a work based on the Program) on a volume of a storage
or distribution medium does not bring the other work under the scope of this
License.
3. You may copy and distribute the Program (or a work based on it, under
Section 2) in object code or executable form under the terms of Sections 1 and 2
above provided that you also do one of the following:
a) Accompany it with the complete corresponding machine-readable source
code, which must be distributed under the terms of Sections 1 and 2 above on a
medium customarily used for software interchange; or,
b) Accompany it with a written offer, valid for at least three years, to
give any third party, for a charge no more than your cost of physically
performing source distribution, a complete machine-readable copy of the
corresponding source code, to be distributed under the terms of Sections 1 and 2
above on a medium customarily used for software interchange; or,
c) Accompany it with the information you received as to the offer to
distribute corresponding source code. (This alternative is allowed only for
noncommercial distribution and only if you received the program in object code
or executable form with such an offer, in accord with Subsection b above.)
The source code for a work means the preferred form of the work for making
modifications to it. For an executable work, complete source code means all the
source code for all modules it contains, plus any associated interface
definition files, plus the scripts used to control compilation and installation
of the executable. However, as a special exception, the source code distributed
need not include anything that is normally distributed (in either source or
binary form) with the major components (compiler, kernel, and so on) of the
operating system on which the executable runs, unless that component itself
accompanies the executable.
If distribution of executable or object code is made by offering access to
copy from a designated place, then offering equivalent access to copy the source
code from the same place counts as distribution of the source code, even though
third parties are not compelled to copy the source along with the object code.
4. You may not copy, modify, sublicense, or distribute the Program except as
expressly provided under this License. Any attempt otherwise to copy, modify,
sublicense or distribute the Program is void, and will automatically terminate
your rights under this License. However, parties who have received copies, or
rights, from you under this License will not have their licenses terminated so
long as such parties remain in full compliance.
5. You are not required to accept this License, since you have not signed it.
However, nothing else grants you permission to modify or distribute the Program
or its derivative works. These actions are prohibited by law if you do not
accept this License. Therefore, by modifying or distributing the Program (or any
work based on the Program), you indicate your acceptance of this License to do
so, and all its terms and conditions for copying, distributing or modifying the
Program or works based on it.
6. Each time you redistribute the Program (or any work based on the Program),
the recipient automatically receives a license from the original licensor to
copy, distribute or modify the Program subject to these terms and conditions.
You may not impose any further restrictions on the recipients' exercise of the
rights granted herein. You are not responsible for enforcing compliance by third
parties to this License.
7. If, as a consequence of a court judgment or allegation of patent
infringement or for any other reason (not limited to patent issues), conditions
are imposed on you (whether by court order, agreement or otherwise) that
contradict the conditions of this License, they do not excuse you from the
conditions of this License. If you cannot distribute so as to satisfy
simultaneously your obligations under this License and any other pertinent
obligations, then as a consequence you may not distribute the Program at all.
For example, if a patent license would not permit royalty free redistribution of
the Program by all those who receive copies directly or indirectly through you,
then the only way you could satisfy both it and this License would be to refrain
entirely from distribution of the Program.
If any portion of this section is held invalid or unenforceable under any
particular circumstance, the balance of the section is intended to apply and the
section as a whole is intended to apply in other circumstances.
It is not the purpose of this section to induce you to infringe any
patents or other property right claims or to contest validity of any such
claims; this section has the sole purpose of protecting the integrity of the
free software
distribution system, which is implemented by public license practices. Many
people have made generous contributions to the wide range of software
distributed through that system in reliance on consistent application of that
system; it is up to the author/donor to decide if he or she is willing to
distribute software through any other system and a licensee cannot impose that
choice.
This section is intended to make thoroughly clear what is believed to be a
consequence of the rest of this License.
8. If the distribution and/or use of the Program is restricted in certain
countries either by patents or by copyrighted interfaces, the original copyright
holder who places the Program under this License may add an explicit
geographical distribution limitation excluding those countries, so that
distribution is permitted only in or among countries not thus excluded. In such
case, this License incorporates the limitation as if written in the body of this
License.
9. The Free Software Foundation may publish revised and/or new versions of the
General Public License from time to time. Such new versions will be similar in
spirit to the present version, but may differ in detail to address new problems
or concerns.
Each version is given a distinguishing version number. If the Program
specifies a version number of this License which applies to it and "any later
version", you have the option of following the terms and conditions either of
that version or of any later version published by the Free Software Foundation.
If the Program does not specify a version number of this License, you may choose
any version ever published by the Free Software Foundation.
10. If you wish to incorporate parts of the Program into other free programs
whose distribution conditions are different, write to the author to ask for
permission. For software which is copyrighted by the Free Software Foundation,
write to the Free Software Foundation; we sometimes make exceptions for this.
Our decision will be guided by the two goals of preserving the free status of
all derivatives of our free software and of promoting the sharing and reuse of
software generally.
NO WARRANTY
11. BECAUSE THE PROGRAM IS LICENSED FREE OF CHARGE, THERE IS NO WARRANTY FOR
THE PROGRAM, TO THE EXTENT PERMITTED BY APPLICABLE LAW. EXCEPT WHEN OTHERWISE
STATED IN WRITING THE COPYRIGHT HOLDERS AND/OR OTHER PARTIES PROVIDE THE PROGRAM
"AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING,
BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE
PROGRAM IS WITH YOU. SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME THE COST OF
ALL NECESSARY SERVICING, REPAIR OR CORRECTION.
12. IN NO EVENT UNLESS REQUIRED BY APPLICABLE LAW OR AGREED TO IN WRITING WILL
ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MAY MODIFY AND/OR REDISTRIBUTE THE
PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU FOR DAMAGES, INCLUDING ANY GENERAL,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OR INABILITY
TO USE THE PROGRAM (INCLUDING BUT NOT LIMITED TO LOSS OF DATA OR DATA BEING
RENDERED INACCURATE OR LOSSES SUSTAINED BY YOU OR THIRD PARTIES OR A FAILURE OF
THE PROGRAM TO OPERATE WITH ANY OTHER PROGRAMS), EVEN IF SUCH HOLDER OR OTHER
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
END OF TERMS AND CONDITIONS
How to Apply These Terms to Your New Programs
If you develop a new program, and you want it to be of the greatest
possible use to the public, the best way to achieve this is to make it free
software which everyone can redistribute and change under these terms.
To do so, attach the following notices to the program. It is safest to
attach them to the start of each source file to most effectively convey the
exclusion of warranty; and each file should have at least the "copyright" line
and a pointer to where the full notice is found.
(one line to give the program's name and a brief idea of what it does.)
Copyright (C) 19yy (name of author)
This program is free software; you can redistribute it and/or modify it
under the terms of the GNU General Public License as published by the Free
Software Foundation; either version 2 of the License, or (at your option)
any later version.
This program is distributed in the hope that it will be useful, but WITHOUT
ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
FITNESS FOR A PARTICULAR PURPOSE. See the GNU General Public License for
more details.
You should have received a copy of the GNU General Public License along with
this program; if not, write to the Free Software Foundation, Inc., 59 Temple
Place, Suite 330, Boston, MA 02111-1307 USA
Also add information on how to contact you by electronic and paper mail.
If the program is interactive, make it output a short notice like this
when it starts in an interactive mode:
Gnomovision version 69, Copyright (C) 19yy name of author
Gnomovision comes with ABSOLUTELY NO WARRANTY; for details type `show w'.
This is free software, and you are welcome to redistribute it under certain
conditions; type `show c' for details.
The hypothetical commands `show w' and `show c' should show the
appropriate parts of the General Public License. Of course, the commands you use
may be called something other than `show w' and `show c'; they could even be
mouse-clicks or menu items--whatever suits your program.
You should also get your employer (if you work as a programmer) or your
school, if any, to sign a "copyright disclaimer" for the program, if necessary.
Here is a sample; alter the names:
Yoyodyne, Inc., hereby disclaims all copyright interest in the program
`Gnomovision' (which makes passes at compilers) written by James
Hacker.
(signature of Ty Coon), 1 April 1989
Ty Coon, President of Vice
This General Public License does not permit incorporating your program
into proprietary programs. If your program is a subroutine library, you may
consider it more useful to permit linking proprietary applications with the
library. If this is what you want to do, use the GNU Library General Public
License instead of this License.
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