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IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
Monday, March 19 2007 @ 08:00 AM EDT

Here's Addendum E [PDF] to IBM's Redacted Reply Memorandum in Further Support of its Motion for Summary Judgment on SCO's Contract Claims (SCO's First, Second, Third and Fourth Causes of Action) [PDF] as text, thanks to Groklaw member caecer.

It's titled, "An Illustration of the Absurdity of SCO's Claim" and it illustrates the result of applying SCO's contract claim to all the other Unix SysV licensees apart from IBM. Here's the opening:

SCO’s contract theory would lead to absurd results, not only for IBM, but potentially for the thousands of other UNIX System V licensees. If SCO were correct that the entire Dynix product is a “Derivative Work” of Unix System V, the possible repercussions for UNIX-related technologies would know no practical bounds, and SCO would be entitled to a windfall of outrageous proportions.

Would you like SCO to control the internet? According to its contract theory, the result, IBM says, would be "SCO would be able to claim control over the entire internet and every internet-enabled device in existence, such as: cell phones, Blackberry devices, network hardware, and even some space satellites."

Here's IBM's original Memorandum in Support of its motion for summary judgment on these claims, and here's SCO's memo in opposition. If someone could OCR the Reply Memorandum for me, #981, I'd appreciate it. It's humungous, 111 pages.

*************************

ADDENDUM E

An Illustration of the Absurdity of SCO’s Claim

SCO’s contract theory would lead to absurd results, not only for IBM, but potentially for the thousands of other UNIX System V licensees. If SCO were correct that the entire Dynix product is a “Derivative Work” of Unix System V, the possible repercussions for UNIX-related technologies would know no practical bounds, and SCO would be entitled to a windfall of outrageous proportions.

In its summary judgment papers and elsewhere, SCO has claimed that it has the right to control non-System V material contained within an alleged “Derivative Work” when such material is adapted for use in a new work containing no System V code. For example, SCO has claimed that it was improper for IBM to contribute to Linux certain RCU material created entirely by Sequent software developers. The RCU material contains no code copied from, or derived from, System V code, yet since it was adapted to work as part of the Dynix product, SCO claims that it controls RCU. (IBM Ex. 3 ¶¶ 144-166.) The diagram below shows SCO’s alleged contractual basis for claiming control of RCU if all Dynix is a “Derivative Work”:

1

As demonstrated, SCO’s theory is one of guilt by association. Because RCU technology was implemented in Dynix, SCO claims that it may control RCU (by preventing IBM from disclosing it to non-licensees) because of its fortuitous inclusion in an operating system product that may include some System V-derived code. Notably, SCO does not accuse IBM of having engaged in behavior that the Agreement actually contemplates, such as misuse of the actual Unix System V code.

While SCO’s theory has bizarre ramifications for IBM’s use of its own intellectual property, some of the most absurd results of SCO’s theory become apparent when applying it to the creations of other System V licensees, past and present. Consider the case of TCP/IP (Transmission Control Protocol/Internet Protocol), a technology first widely implemented as part of the BSD operating system, which at the time included licensed AT&T UNIX material. 1 (IBM Ex. 645 at 37-40.) TCP/IP eventually was removed from the AT&T-licensed UNIX system and thus understood to be beyond AT&T’s control:

With the increasing cost of the AT&T source licenses, vendors that wanted to build standalone TCP/IP-based networking products for the PC market using the BSD code found the per-binary costs prohibitive. So, they requested that Berkeley break out the networking code and utilities and provide them under licensing terms that did not require an AT&T source license. The TCP/IP networking code clearly did not exist in 32/V and thus had been developed entirely by Berkeley and its contributors. The BSD originated networking code and supporting utilities were released in June 1989 as Networking Release 1, the first freely redistributable code from Berkeley. (IBM Ex. 645 at 40-41.)

2

Under SCO’s contract theory, the entirety of the BSD operating system product in which TCP/IP was first implemented, including TCP/IP itself, would be a “Derivative Work” subject to SCO’s control. As such, SCO could control TCP/IP as it now seeks to control IBM’s RCU technology. Since the entire internet is built upon TCP/IP, the code, methods and concepts of which must be known to internet programmers in order for the internet to function, SCO would be able to claim control over the entire internet and every internet-enabled device in existence, such as: cell phones, Blackberry devices, network hardware, and even some space satellites. 2

The hypothetical TCP/IP claim SCO could make under its contract theory is diagrammed below:

As this illustration should make clear, SCO’s contract theory, if accepted, would lead to absurd results.

3

1 Although Berkeley did eventually create a version of its product unencumbered by AT&T UNIX licensing restrictions, the version of BSDI’s “BSD” operating system in which TCP/IP was first implemented was based on AT&T UNIX code. (IBM Ex. 645 at40.)

2 See, e.g., http://www.starband.com. SCO is aware of the potential scope of its claims, as it in fact argues in its opposition to IBM’s Tenth Counterclaim that material it purports to control is important because the removal of it, “would make the World Wide Web grind to a halt”.(DJ Opp’n Br. at 66.)

  


IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim | 257 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections go here
Authored by: WhiteFang on Monday, March 19 2007 @ 08:25 AM EDT
If needed. :-D

---
SCO's "two wrongs make a right" argument is untenable as a matter of law and
common sense. - IBM GPL Reply Brief Redacted.

[ Reply to This | # ]

OT Here Please
Authored by: WhiteFang on Monday, March 19 2007 @ 08:30 AM EDT
Clickies if you got'em. Be sure to follow the html examples in the reply dialog.
And don't forget to turn on HTML mode!

---
SCO's "two wrongs make a right" argument is untenable as a matter of law and
common sense. - IBM GPL Reply Brief Redacted.

[ Reply to This | # ]

IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
Authored by: WhiteFang on Monday, March 19 2007 @ 08:35 AM EDT
I love how IBM forestalled SCOX's possible counter argument of "but that's
not what we mean" {in terms of absurdity} by the simply expedient of
throwing SCOX's words back in footnote 2.

Of course, SCOX sees no absurdity so long as they get to rake in oodles and
oodles of money they didn't earn and don't deserve.

---
SCO's "two wrongs make a right" argument is untenable as a matter of law and
common sense. - IBM GPL Reply Brief Redacted.

[ Reply to This | # ]

But there are lots of independent TCP/IP implementations
Authored by: Anonymous on Monday, March 19 2007 @ 08:45 AM EDT

I fear that now IBM's lawyers are overstating their case. BSD TCP/IP code is widespread, yes, but there are plenty of independent TCP/IP implementations out there. I've written two of them. MS used to use a Berkeley-derived TCP/IP in some of their products, but reportedly has replaced it with an in-house-written one. I don't know whether Linux's current TCP/IP code has a BSD heritage; perhaps someone more knowledgeable about Linux history could reflect on that.

The specifications for TCP/IP are publically available. There are even books (Comer and Stevens, for example) that are practically guides to roll-your-own TCP/IP stacks. Implementing TCP, in particular, is an excellent exercise in discipline -- it would be a great exercise for every programmer to go through the process. (It teaches you not to cut corners. Every possible error case will, at some point, arise. If you cut corners, your code will fail when it shouldn't.)

Does IBM actually know that a Blackberry has Berkeley-derived TCP/IP in it? It might not.

[ Reply to This | # ]

IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
Authored by: John Hasler on Monday, March 19 2007 @ 09:03 AM EDT
The last illustration is wrong. There is no SysV in BSD: just 32V.

---
IOANAL. Licensed under the GNU General Public License

[ Reply to This | # ]

Developers! Developers! Developers!
Authored by: Jude on Monday, March 19 2007 @ 09:49 AM EDT
How does SCO plan to attract developers to work on their platforms when they
make such wide-reaching IP claims? I would never create product that ran on a
SCO platform because I'd be afraid that SCO would turn around and claim they
owned the product.

[ Reply to This | # ]

IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
Authored by: Anonymous on Monday, March 19 2007 @ 10:26 AM EDT
Why would the fact that if the claim would be valid it had widespread
ramifications be of any influence on the question whether or not the claim is
true?

I'm playing devil's advocate here, but exactly what purpose does this addendum
serve except play on sentiments and not on legal issues?

[ Reply to This | # ]

IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
Authored by: giskard on Monday, March 19 2007 @ 10:34 AM EDT
I'm sorry that this is so juvenile, but i just have to say it.

all your TCP/IP are belong to me!

[ Reply to This | # ]

Maybe IBM's made a mistake here . . .
Authored by: PTrenholme on Monday, March 19 2007 @ 10:48 AM EDT

after all, if the SCO theory is correct, clearly every computer system is based, fundamentally, on the methods and concepts of a computer system.

And IBM holds many patents and copyrights to lots of methods and concepts related to computer systems.

So, assuming the SCO premise, it follows that “all your computers belong to IBM,” and, ipso facto, SCO is out of business, and IBM now owns the whole world.

So, don’t you think that IBM’s legal staff may have missed a great opportunity here? At least they should have files a counter-claim for all of UNIX based on SCO’s theory, eh?

---
IANAL, just a retired statistician

[ Reply to This | # ]

An additional line of argument: conflicting tar baby claims
Authored by: jdg on Monday, March 19 2007 @ 10:58 AM EDT
It seems to me that there is an additional line of argument. Anyone else with
this same contract language could construct a string of licenses that form a tar
baby ring that would result in overlapping and conflicting claims. Even if
SCOg's theory is 'correct' it would have to be wrong because it would gridlock
the courts and another basis than the contract would be needed to break the many
irreconcilable claims.

---
SCO is trying to appropriate the "commons"; don't let them [IANAL]

[ Reply to This | # ]

    Would everybody please stop making a joke of this IBM Addendum
    Authored by: Anonymous on Monday, March 19 2007 @ 11:40 AM EDT
    This is serious.

    [ Reply to This | # ]

    Simple Question....
    Authored by: Anonymous on Monday, March 19 2007 @ 11:47 AM EDT
    Isn't there supposed to be a "meeting of the minds" in the process of
    creating a contract? And, further, isn't there an affirmation of that notion in
    the subsequent actions (and inactions) of the parties thereafter?

    Is it even reasonable in the wildest stretch, that this outcome is what the
    parties to the contract actually intended at the time?

    This is total nonsense on its face and how SCO could get this far is simply
    amazing.

    [ Reply to This | # ]

    Remove parent SPAM N/T
    Authored by: Winter on Monday, March 19 2007 @ 11:48 AM EDT
    Remove parent SPAM N/T

    ---
    Some say the sun rises in the east, some say it rises in the west; the truth
    lies probably somewhere in between.

    [ Reply to This | # ]

    IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
    Authored by: Anonymous on Monday, March 19 2007 @ 11:53 AM EDT
    I would think there can be no middle ground here. Either
    you buy into SCO's theory and are then forced to bargin
    with them, or decide it is totally wacko from a legal
    stand point and boot SCO and its lawyers out of the
    court room and down the front steps.

    [ Reply to This | # ]

    yup - spam
    Authored by: Illiander on Monday, March 19 2007 @ 11:59 AM EDT
    I hit one of the links, lot's of porn ads

    [ Reply to This | # ]

    Oh great. Here it comes...
    Authored by: Anonymous on Monday, March 19 2007 @ 12:04 PM EDT
    Who'll be the first to spin it?

    Headline:

    IBM admits SCO could control Internet; SCO stock skyrockets

    [ Reply to This | # ]

    SPAMACITIS ALERT
    Authored by: Anonymous on Monday, March 19 2007 @ 12:05 PM EDT
    stupid bad user , must be scoing.
    er trolling

    [ Reply to This | # ]

    DO NOT VISIT THE ABOVE
    Authored by: Anonymous on Monday, March 19 2007 @ 12:06 PM EDT
    it asks you to allow a certificate from some site who cares if its spammed in
    like htis dont go

    [ Reply to This | # ]

    All posts by boomer are similar
    Authored by: cricketjeff on Monday, March 19 2007 @ 12:19 PM EDT
    Appears to be an account created today specifically to spam the site. Hasn't
    Darl got anything better to do?
    (PS that last bit is a JOKE)

    [ Reply to This | # ]

    This is what happens when you start waving coloured charts around:
    Authored by: DaveJakeman on Monday, March 19 2007 @ 12:40 PM EDT
    ...they come back to bite you in the bum.

    I hope SCO hate being bitten as much as I enjoy watching them get bit.

    ---
    I would rather stand corrected than sit confused.
    ---
    Should one hear an accusation, try it on the accuser.

    [ Reply to This | # ]

    TCP/IP != RCU
    Authored by: Anonymous on Monday, March 19 2007 @ 12:54 PM EDT
    I know I'm going to get shot for this, but the RCU example was actual code
    modified and copied to another OS. The TCP/IP example is not of code being
    copied, but of a (standardized) protocol being implemented independantly by
    others based on public documentation.

    Ofcourse, under SCO's "methods and concepts" theory, in which those
    can be copyrighted, it's the same thing. But to all of us living in reality,
    these two cannot be compared in the way they are being done in IBM's document.

    You've got to admire how IBM managed to make SCO's "methods and
    concepts" theory back-fire. :)

    [ Reply to This | # ]

    Oh, the irony! Oh, the irony!
    Authored by: Anonymous on Monday, March 19 2007 @ 01:14 PM EDT
    As pointed out above, MS used a BSD TCP/IP stack in early versions of NT. That
    means, under SCOX theory, that all versions of Windows from NT 3 forward are
    really derivative works, and are really owned by SCOX. Imagine how many
    bazillions of dollars they could sue MS for? If that's the case, does that mean
    that MS would be funding, as some would suggest they've already been doing,
    litigation against themselve?

    I guess it also means they could completely revitalize their SCOSource program
    by sending out extor^H^H^H^H^H licensing letters to every man, woman, and child
    in North America. Why, even if only 0.0001% of the suck^H^H^H^H potential
    licensees paid up, they'd have enough revenue to keep things locked up in court
    well past Unix millenium.

    [ Reply to This | # ]

    Articles: Ian Murdock: Debian "missing a big opportunity"
    Authored by: Anonymous on Monday, March 19 2007 @ 01:56 PM EDT
    http://www.linuxformat.co.uk/murdockint.html

    Ian Murdock founded Debian GNU/Linux nearly fifteen years ago, and today it
    provides the foundations for many well-known distros such as Ubuntu and Knoppix.
    LXF caught up with Ian, who currently chairs the Linux Standards base, and asked
    him about Debian politics, leadership and the rise of Ubuntu...

    [ Reply to This | # ]

    Hang On...
    Authored by: Simon G Best on Monday, March 19 2007 @ 01:59 PM EDT

    Hang on, I think I must be missing something. (It would not be at all surprising if I am missing something here, as I haven't been following this stuff in sufficient detail to be sure that I'm not missing something.)

    If, as IBM says The SCO Group says, System V licensees are contractually bound to treat each and every part of a derived work as being effectively controlled by The SCO Group, then would it really necessarily follow that The SCO Group would control everything? Is IBM's reductio ad absurdum argument actually correct?

    Let's suppose, for a moment, that IBM (or any other System V licensee) is bound, by contract with The SCO Group, in the way IBM says The SCO Group says. Let's also suppose that IBM took part of a derived work and put it in some other, third party's piece of software, without The SCO Group's permission. Let's call that part, "part X". Let's suppose that part X does not itself contain any System V, and would not normally (if it wasn't for that contract) be regarded as a derived work of System V. If I understand correctly, IBM is saying that The SCO Group's theory says that IBM would then be in breach of that contract. Fine so far.

    But how would that third party be bound in the way IBM says The SCO Group's theory implies? IBM would be in breach of contract, but that third party wouldn't be bound by that contract anyway. The SCO Group would have no control over that third party's subsequent use of part X. This is still assuming that the theory IBM attributes to The SCO Group is correct, and assuming that I've understood IBM's argument correctly.

    What I fail to see, assuming that the theory IBM attributes to The SCO Group is correct, is how The SCO Group would then control everything in the way IBM says the theory implies.

    Having said that, it occurs to me that if the theory involves copyrights in part X being held, at least in part, by The SCO Group, as a result of the System V licencing contract, then the theory would imply The SCO Group's control of everything containing things like part X. It would be a matter of IBM transferring, or sharing, copyright in part X with The SCO Group. Is that what I was missing?

    What am I missing? Or is IBM arguing that the theory they're attributing to The SCO Group implies an absurdity it doesn't actually imply?

    ---
    "Public relations" is a public relations term for propaganda.

    [ Reply to This | # ]

    SCO De-listing Watch
    Authored by: sonicfrog on Monday, March 19 2007 @ 04:29 PM EDT
    Three days below $1.00, twenty-eight more to go!

    [ Reply to This | # ]

    IBM's Addendum E: An Illustration of the Absurdity of SCO's Contract Claim
    Authored by: Anonymous on Monday, March 19 2007 @ 04:50 PM EDT
    I am not sure this one discourages SCO in any way.

    They are probably high-fiving, for the idea of controlling all of TCP/IP. If
    anything they will get into court, and state
    : yes, we control all of TCP/IP, but we let it pass due to our magnanimity.

    [ Reply to This | # ]

    Linux "won't work without STREAMS"
    Authored by: Anonymous on Monday, March 19 2007 @ 04:59 PM EDT
    Has anyone seen IBM rebut that absurdity uttered by SCO's lawyers in the
    transcript the other day? They're usually so thorough, I assume I've missed the
    rebuttal, but I should hope they'd nail down a softball like that, especially
    given that Linux, SFAIK, does NOT include STREAMS and only SCO's distro ever
    did.

    Nor does it need JFS, for that matter, or any of the other technologies SCO
    talked about. Most people seem to use ext3, anyhow, and there's a lot of buzz
    about ZFS which sounds really cool to me, especially if it can deliver on all
    the promises I've heard made.

    [ Reply to This | # ]

    NOT even Micorsoft would print that
    Authored by: sonicfrog on Monday, March 19 2007 @ 06:14 PM EDT
    Ooops. Should have looked like this: ... ... yes, but Forbes might!

    [ Reply to This | # ]

    Overstates SCOs case
    Authored by: Anonymous on Monday, March 19 2007 @ 07:33 PM EDT
    While I like the pictures, I think IBM is overstating SCOs current case. While
    SCO was indeed initially claiming to own "millions of lines" of code
    in linux, which is why we are all here, its claim is now reduced to a very weak
    argument that IBM may have violated the fine print of a contract. In order to
    argue even this SCO is forced to very creatively interpret the wording of the
    fine print in ways clearly not contemplated by any of the original parties to
    the contract. They are not going to win this way. The only reason they seem to
    still be fighting is out of a vindictive and malicious desire to hurt IBM and
    burn all of their assets before they inevitably lose.

    Under SCOs argument, even if it were true that contributing RCU code to linux
    was in violation of the contract (which it isn't as the court will soon rule),
    this would be a matter between IBM and SCO. Users of linux have a valid license
    to use RCU code granted by the copyright holder which is IBM. We don't need
    SCO's permission because SCO doesn't own this code and has admitted as much. SCO
    has no claim on users of linux at all at this point.

    Look now at the TCP/IP analogy. SCOs claim would be against the university for
    supposedly violating its contract. SCO would have no claim against blackberry or
    other users of the TCP/IP code who have a valid license from the copyright
    owner. Promises the copyright owner may have made to others about who they would
    license their code to are irrelevant.

    [ Reply to This | # ]

    "Best of Groklaw" page?
    Authored by: Anonymous on Monday, March 19 2007 @ 10:08 PM EDT
    I hope you're getting better PJ, get plenty of rest and don't rush back too
    soon!

    Would it be a good idea sometime down the road to set up a "Best of
    Groklaw" page that highlights say, what you feel are the ten best or the
    most significant articles that you've written? With over 3,000 articles in the
    past four years, that may sound impossible to do, but it may be valuable to
    people who don't visit on a daily basis. I think there are important articles,
    like this one, that get scrolled off the front page too soon. I'd also nominate
    the USL/BSD settlement article to be on this summary page.

    Take care!

    [ Reply to This | # ]

    Where is Addendum E referenced
    Authored by: Anonymous on Tuesday, March 20 2007 @ 06:12 AM EDT
    I've been looking through IBM's reply in further support and can't find a
    reference to this addendum. I was wondering where it fit in context. What
    (nonsense) in SCO's reply was it rebutting?

    Is this new or would SCO have seen it in discovery or an expert report?

    Did IBM sneak this in by putting it in their rebuttal rather than the initial
    memorandum in support of the motion?

    Since IBM didn't refer to it in the hearing, SCO would have had to bring it up
    there to refute it. Might IBM have been hoping SCO would raise it? How would
    IBM have used that?

    Why did IBM choose to use Blackberry as an example instead of, say, MS
    Windows?

    [ Reply to This | # ]

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