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SCO's Supplemental Exhibits in Support of PSJ Motion on 1st, 2d, 5th Causes of Action - Updated
Tuesday, June 26 2007 @ 05:28 PM EDT

We earlier listed some exhibits by number, the ones attached to the Supplemental Declaration of Edward Normand [PDF] in support, I think, of SCO's Motion for Partial Summary Judgment on its 1st, 2nd and 5th Causes of Action and for Summary Judgment on Novell's 1st Counterclaim [PDF]. It doesn't actually say what the exhibits are in support of, but it was filed with that motion, so I must assume that is its purpose. I've had a chance to take a look at the exhibits now, the ones that are not sealed, and so here they listed by number but also with a brief description of their contents.

Once again, SCO has made some odd choices, since its goal is to support this contention in their Memorandum in Support of the motion:

SCO submits that the Court should grant partial summary judgment on those claims and summary judgment on Novell’s slander-of-title counterclaim, because the APA as amended plainly transferred the copyrights to Santa Cruz.

Why, then, attach as an exhibit the Aaron Alter deposition excerpts, where he testifies on behalf of the law firm of Wilson, Sonsini that Novell retained the copyrights in the Santa Cruz deal?

'Tis a puzzlement, especially because Mr. Alter's deposition isn't referenced in the SCO memorandum in support of its motion. Now *that* is truly odd. You don't normally just gather up exhibits and throw them at the judge. You are supposed to reference them in your filing, so he knows what they are for and what they are being used to prove.

This motion has been argued before Judge Dale Kimball and we await his decision. But while we wait, we may as well read what he's reading, so here are all the exhibits and what they are about:

  • Exhibit 1: Strategic Development Agreement between Novell, Inc. and The Santa Cruz Operation, Inc., December 6, 1995. This is the document that talks about the Eiger development anticipated back then. It includes this paragraph:
    1.1 Purpose. Novell and SCO are interested in satisfying the needs of their respective customers and in increasing the ease of use and interoperability of Novell and SCO products and Novell and SCO have developed and intend to continue to develop products to achieve such ease of use and interoperability. Novell and SCO desire to establish through this SDA the terms and conditions for use by them with regard to the development, licensing, sales or other activities of such products.

    Then on page 10, it's interesting to see what the parties would do if one of them, on viewing the confidential materials of the other, notice an apparent infringement of a patent. Of course, like you, I was reminded of the Microsoft-Novell patent deal. That made me wonder, what happens if Microsoft or Novell, in viewing each others' materials notices an apparent patent infringement? The patent deal does not cover the companies, after all, only the end users, unlike normal patent deals. But if you want to see a normal one, this is the document.

    There is also a "Statement of Work No. 1 for NetWare Software", which includes this paragraph:

    2.9 UnixWare - That certain technology provided to SCO by Novell pursuant to the Asset Purchase Agreement dated December 8, 1995 and described therein as UnixWare 2.1 (Eiger) and any follow on technology based upon that code. UnixWare shall exclude, however, the deliverables set forth in Exhibit A to this Statement of Work and defined as NetWare Software.

  • Exhibit 2 - SCO/Novell Documentation Transition Issues (10/16/95).

    This is a list of books and documents and how copyright notices would be handled. Notably I see no copyrights listed for anything but books and documents, except for a Novell SDK CD, which was not going to be continued.

    For online books, it says, "Only the notice that appears when each book is opened will be changed. SCO will replace Novell as the Copyright owner." But that is talking about books, not software. And it also shows me that SCO is incorrect in the testimony offered by Jay Petersen that SCO didn't replace any copyright notices on source code. I don't believe that is accurate anyway, but for sure this exhibit shows they certainly did change them on books. So once again, you can't help but ask why SCO thought this exhibit would help them, when it makes one wonder if they bothered to change copyright notices on things as insignificant as items on this list of books, why wouldn't they do so on software? And the CD is listed as not being important to change not because it wasn't SCO's habit to change copyright notices on software but because the CD was not going to be continued.

    There is, under the category of Third-party Copyrights a notation regarding SCO Trademarks: "Shelly approved use of SCO blanket acknowledgment, rather than listing all trademark owners like Novell does." Again, this is in connection with books. Under "Software Copyrights" it says "Shelly agreed that we did not have to list any software copyrights on the disclaimer page." As for "Source Code Product Docs" it says only that "Tech Pubs Team MP 15 will work with us; On 10/4/95, Jim emailed the UnixWare 2.01 Source Code Product plan to Bridget."

  • Exhibit 3 - Declaration of Sandeep Gupta

    All it says is that they found copyright notices for SCO in online books Novell transferred to SCO. That isn't the same as finding copyright notices in software. We know, for example, that copyrights in the books did transfer. That proves absolutely nothing about the software.

  • Exhibit 4 - Rule 30(b)96) Deposition of Michael J. Danaher, April 27, 2007

    Danaher is a partner at Wilson Sonsini. There is an Index of Exhibits that includes SCO's notice of third-party subpoena to Wilson, Sonsini and some email we haven't heard about before. There is also a "Letter to Ladies and Gentlemen" from Wilson, Sonsini. Hmm. A joke is trying hard to burst through a crack in the concrete will of mine not to say what I'm thinking.

    The lawyers at the deposition are Ted Normand and Kenneth Brakebill and Mark Marnes of Wilson Sonsini. Danaher says that at a "high level" he thought everything was supposed to transfer, but he says that he doesn't really know about any particular copyright or license, because "I didn't get involved in those details." He also testifies that he has no understanding of the litigation between SCO and Novell. "I don't think I was aware of who the parties were to the litigation until Wednesday when Mark told me." Normand says, "Good for you."

  • Exhibit 5 - Rule 30(b)(6) Deposition of Aaron J. Alter, April 27, 2007

    Same lawyers as in exhibit 4. Alter is representing here the firm of Wilson, Sonsini, where he is a partner. He says that everything set out at Exhibit 1.1(b) were to be retained by Novell. "Novell did retain the rights to the revenue stream and the royalty payments, and it did retain other intellectual property rights in the assets that were transferred."

    What he says that is helpful to SCO is that he doesn't think the retention of certain assets by Novell was due to worries about bankruptcy. He expresses it was because SCO didn't have enough money to pay for all the IP rights. He also states his belief that the rights granted to SCO "were sufficient to enable SCO to run the UNIX and UnixWare business going forward..." And he confirms that the license back to Novell was about any additional improvements SCO might make. Novell retained rights sufficient to develop UNIX and UnixWare, although it had no intention of doing so. They could also in his view make copies of it and he doesn't recall any prohibition blocking Novell from distributing the copies of the source code.

  • Exhibit 6 - I see Exhibit 6 is a letter to the Justice Department explaining the dispute in detail. We've read the media coverage about the Xenix story, but now we get to see Santa Cruz's view of it in depth.

  • Exhibit 7 - The Santa Cruz EU complaint about Xenix and Microsoft's alleged anticompetitive restrictions on Unix as per an early contract which came to a head back in the 90's has shown up, but I don't know why yet. But it's Exhibit 7, the actual application.

  • Exhibit 10 - A Tale of Two Press Releases, by Mitch Stone

    It's available still online, right here.

  • Exhibit 11 - Novell Internal Legal Memorandum from David R. Bradford to Kanwal Kehl

    Re: "Avoidance of $15.00 Per Copy Royalty to Microsoft"
    November 19, 1993
    CC: Ray Noorda, Sandy Tannenbaum

    The memo includes the following:

    "...Microsoft is now marketing NT which Bill Gates himself has called 'A Disciplined UNIX'... Also, the NT product itself may be violative of certain UNIX copyrighted code. We are attempting to obtain some NT source code in order to analyze it based on possible copyright infringement."

    This memo was written in 1993. The APA was September 1995. [ Update: I noticed something when I was rereading the APA and amendments about Xenix. One of the assets that did transfer was the Xenix agreement with Microsoft: "G. Microsoft agreement (Xenix Agreement) - Xenix compatibility and per copy fee agreement. Seller will agree to discuss with SCO Seller's interpretation of this agreement." "..will agree to discuss... interpretation of this agreement" is an intriguing phrase. I'd like to hear that interpretation myself. Do you recall the SCO version of Eric Levenez's Unix chart, how it purported to show a link between Xenix/Sinix and Minix and then to Linux? SCO has taken their chart down after we published the repudiation of that theory by Eric Levenez himself. It used to be at http://www.sco.com/scosource/ unixtree/unixhistory01.html

    But do you suppose that was the original plan? Certainly SCO and the gang mentioned Minix more than once.]

  • Exhibit 12 - Declaration of Steven Sabbath

    Sabbath testifies to the following:

    I participated in numerous meetings and discussions leading up to the 1995 Asset Purchase Agreement....

    I understand that the parties' intent and purpose in executing the APA was to transfer to Santa Cruz Novell's entire UNIX-related business, including all rights to UNIX and UnixWare and the UNIX copyrights...

    However, he also says that Amendment 2, which he claims to have personal knowledge of, unlike the above, was the result of a dispute about Novell signing, on Santa Cruz's behalf, a royalty buyout with IBM. If Novell didn't think it had that power, why did it do that? The unanswerable question. He admits that the dispute led to an amendment, but not Amendment 2. That was "intended to confirm... that SCO would obtain ownership of the UNIX copyrights under the APA" in his view.

    Except that the APA was signed in September of 1995, and here he says they "would obtain," not that it had already done so. So to me the wording of that amendment isn't helpful to SCO. It looks like it's an admission that they didn't get anything from the APA or the bill of sale.

    And as for the dispute, it would have to have an explanation why everything wasn't just put in Amendment X. He claims Amendment 2 was to "make clear" that Novell couldn't raise any licensee's rights to source code, grant any new source code licenses, or prevent Santa Cruz from "exercising the rights it obtained under the APA with respect to SVRX source code". Which would be what? This is his declaration from the IBM case.

  • Exhibit 13 - Deposition of Steve Sabbath Feb 12, 2007, his deposition in Novell

    He tellingly says:

    There were a lot of agreements and exhibits and schedules, and I can't tell you I reviewed every single one. That may not have been possible for anybody to do.

    That undermines his value as a witness, obviously.

    He read the APA, and when they asked him about copyrights, he said this: "...copyrights were going with the assets." He says they were needed, and he says that at no time that he recalls did Santa Cruz after Amendment 2 ask for copyrights to be transferred. ("Not that I recall.") He says they owned the technology, "lock, stock and barrel." Later, though, on page 98 of the transcript and page 5 of the PDF, he admits paragraph 26 of his IBM declaration isn't accurate, in that the trademark UNIX had been sold by Novell to X/Open. Normand points to his paragraph 29 also, and asks how it squares with his new position. He claims only the trademark was "in kind of limbo." His earlier declaration, he now claims, was close enough, but not 100% accurate.

    Nevertheless, I note he signed it.

    In the afternoon session, on the transcript's page 101, he says that in fact patents didn't transfer. And Jacobs points out that the word "all" isn't there. Neither is "the UNIX copyrights" and Sabbath says, yes it is. Then Jacobs shows him it's the exclusionary part where that shows up, and Sabbath says, "True." Oops.

    He also agrees that the business that transferred under the APA did not include SVRX licenses. So less lock, stock and barrel. Also he admits they could have developed derivative works under a license, without a copyright transfer. He also says he understood Amendment 2 to be a clarification, not actually an amendment, a clarification, not a revision. But when pressed by Jacobs, he says, "And I can only say I suppose so....Because I don't really speak very good Latin. No, what I meant is i don't understand the rules pertaining to that legal principle." If this goes to trial, I don't think we will see him on the witness stand.

  • Exhibit 14 - Deposition of Kim Madsen, February 13, 2007

    You could sum up her testimony in these words:

    "I don't remember anything in particular....I do not recall any conversation regarding the copyrights."

Next, I'll put up SCO's Memorandum in Support, so you can compare, as text. There were so many filings all at once in SCO v. Novell I'm still catching up, but I'm determined. I want a *complete* history.


  


SCO's Supplemental Exhibits in Support of PSJ Motion on 1st, 2d, 5th Causes of Action - Updated | 168 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
SCO's Supplemental Exhibits in Support of PSJ Motion on 1st, 2d, 5th Causes of Action
Authored by: Anonymous on Tuesday, June 26 2007 @ 05:38 PM EDT
This supprises you?

[ Reply to This | # ]

Corrections Here
Authored by: red floyd on Tuesday, June 26 2007 @ 05:50 PM EDT
So PJ can find them,

Since we all mispel werds...

Also put the correction in the title, plase.


---
I am not merely a "consumer" or a "taxpayer". I am a *CITIZEN* of the United
States of America.

[ Reply to This | # ]

OT Here
Authored by: red floyd on Tuesday, June 26 2007 @ 05:51 PM EDT
On topic posts will have to do a full analysis of the memorandum to find out why
the Alter deposition was attached to this.

---
I am not merely a "consumer" or a "taxpayer". I am a *CITIZEN* of the United
States of America.

[ Reply to This | # ]

We know, for example, that copyrights in the books did transfer.
Authored by: Anonymous on Tuesday, June 26 2007 @ 06:14 PM EDT
Do we?
And where do we know it from?

[ Reply to This | # ]

SCO's Supplemental Exhibits
Authored by: elcorton on Tuesday, June 26 2007 @ 06:36 PM EDT
Ex. 2 said they were to be changed, and Ex. 3 mentioned finding "SCO" in books.

So what? That just shows that somebody thought that the copyrights in the books were assigned; it doesn't prove that they were. To prove that, you would need a transfer document. SCO has not, to my knowledge, produced one.

[ Reply to This | # ]

When will this case get findings in Summary Judgement???
Authored by: comms-warrior on Tuesday, June 26 2007 @ 07:10 PM EDT
Anyone have an educated guess?


Chris.

[ Reply to This | # ]

PJ's puzzlement
Authored by: Yossarian on Tuesday, June 26 2007 @ 07:35 PM EDT
>'Tis a puzzlement, especially because Mr. Alter's
>deposition isn't referenced in the SCO memorandum
>in support of its motion. Now *that* is truly odd.

I think that people in the SCO legal team lost hope on
that one. They know that they will not get the PSJ in
their favor but they still "have to" put a fight. So
they treated that memorandum as a "low priority" item
while putting their resources on fights where they have
a better chance. (Don't ask me which ones; I am not a
part of the SCO legal team.)

[ Reply to This | # ]

I am puzzled by exhibit 7....
Authored by: tiger99 on Tuesday, June 26 2007 @ 07:42 PM EDT
It seems to be saying (para. 2.5) that Solaris X86 (which I thought was still actually called SunOS at the time of Sun's venture into the x86 architecture) is really Xenix, licensed from the Monopoly, and derived from Unix V7. It says that it was not very compatible with either UnixWare or SCOOS, which certainly confirms that it was basically Xenix, which was compatible with precisely nothing, in true M$ fashion.

But surely the differences between Xenix and BSD, from which SunOS was derived, were such that it would have been far easier just porting SunOS to the x86?

In that era, a Unix port to the National Semiconductors 32032 chip family, was done in two weeks, so it was said (and I don't dispute it) by the Whitechapel Computer Works in London. It was a major selling point of Unix at the time that ports could be done so quickly. Once there was a good C compiler, and some form of bootloader, the work was really just writing hardware drivers, and some of the peripherals may have been common between architectures anyway.

So surely a port of SunOS would not have been a major undertaking for a company like Sun?

Neither Peter Salus's book nor Grokline support the implications of Exhibit 7, but as far as I can see, they don't clearly refute it either. Of course SunOS x86 was a very minor digression anyway, hardly significant compared to the 68000 and SPARC as far as Sun were concerned, which is likely why little has been written about it.

But it would be interesting to know why Sun went to the Monopoly for a *nix licence.

[ Reply to This | # ]

Huh?
Authored by: Anonymous on Tuesday, June 26 2007 @ 07:54 PM EDT
There is also a "Statement of Work No. 1 for NetWare Software", which includes this paragraph:
2.9 UnixWare - That certain technology provided to SCO by Novell pursuant to the Asset Purchase Agreement dated December 8, 1995 and described therein as UnixWare 2.1 (Eiger) and any follow on technology based upon that code. UnixWare shall exclude, however, the deliverables set forth in Exhibit A to this Statement of Work and defined as NetWare Software.
I don't get why the above is worth mentioning. What am I missing?

[ Reply to This | # ]

Can a leopard change its spots?
Authored by: tiger99 on Tuesday, June 26 2007 @ 08:06 PM EDT
s/leopard/Microsoft

Exhibits 7 and 11, maybe more (I am not going to read them all tonight) tell of locking people in to obsolete trashware, and indeed the manipulation of AT&T and their successors to put them in a position where they had to actually pay Gates $15 a copy to remain locked into his obsolete code.

Having what I assume was a 286 compatability layer in Xenix derivatives would neither enhance the stability nor the performance.

There is such a bad history of deals like this that the management of Novell, Xandros and Linspire should be really, really afraid of how they may have been stitched up, as Gates successfully managed to rip off much larger companies like AT&T and IBM.

There is only one way to deal with those who are completely ethically challenged, and that is to simply not deal with them at all.

[ Reply to This | # ]

SCO's Supplemental Exhibits in Support of PSJ Motion on 1st, 2d, 5th Causes of Action
Authored by: FrnchFrgg on Tuesday, June 26 2007 @ 08:27 PM EDT
I find the exhibit "Tale of two headlines" very interesting, since
Microsoft's behavior depicted there seems oddly similar to current SCO public
relations...
They howl at critics, always make up their losses as victories, etc...

What use can such an exhibit be to SCO, apart from shedding into light their
totally psychotic behaviour akin to MS ?
This text is rather unhelpful to them, don't you think ?

Is it a freudian slip ? Perhaps their inner self badly wants to be discovered
(and slapped) by the court ?

---
_FrnchFrgg_

[ Reply to This | # ]

They use O'Gara as supplementary evidence???
Authored by: mobrien_12 on Tuesday, June 26 2007 @ 08:36 PM EDT
"Maureen O’Gara, a journalist covering
the computer industry since 1972, recently testified that then Novell Vice
Chairman Chris St one conveyed to
her, with “laughter,” that Novell was timing its ownership claims to coincide
with
SCO’s earnings report in order to “confound SCO’s stock position” and “upset the
stock price.”


OK... didn't this get discredited? And isn't it by definition hearsay?

[ Reply to This | # ]

Exhibit 7
Authored by: Anonymous on Tuesday, June 26 2007 @ 08:42 PM EDT
SCOG likely included this to show that SCO thought copyrights transferred as
proved by the EU complaint stating they were the copyright owner.

More interesting is some of the arguments in that EU filing. They keep saying
they are the copyright owner of UNIX but the royalties really don't deal with
SVRx UNIX but more to the extensions Microsoft added that made UNIX (XENIX) run
on x86 processors.

They way they get around that is we do not need or want to use their code
anymore so why should we pay for it's use?

This is similar to what some of the IBM issue is about, if we are not using
their code how can it be infringement.

So in an ironic kind of way I think this helps SCOG none in the Novell case but
hurts them much in the IBM case as it shows that SCO (Original) supported IBM's
position enough to argue that same position to the EU.

[ Reply to This | # ]

Dumb question
Authored by: Anonymous on Tuesday, June 26 2007 @ 10:23 PM EDT
If "all copyrights" were excluded by the APA, how come the
copyrights to books transferred? So "all" doesn't mean
"all" and maybe SCO have a point.

[ Reply to This | # ]

Exhibit 6 calls Unix a "non-proprietary" and "open" operating system
Authored by: Anonymous on Tuesday, June 26 2007 @ 11:44 PM EDT
It says furthermore that Unix was "freely licensed by AT&T throughout
the computer industry."

I wonder how these statements, made in 1996, are intended to help SCO now...

[ Reply to This | # ]

Exhibit 5: Alter is an artful dodger
Authored by: Anonymous on Wednesday, June 27 2007 @ 12:20 AM EDT
PJ,

About Exhibit 5 you say:
"What he says that is helpful to SCO is that he doesn't think the retention
of certain assets by Novell was due to worries about bankruptcy."

I did not get this out of it.

My impression is that Alter was extremely careful about what he said and what he
did not say. He was asked several times about this issue. The first thing he
said was, "I can't speculate, and I am not even sure I understand the
question." The closest he comes to agreeing with that statement is to say,
"I wouldn't tie the retention of the other intellectual property rights to
the specific exigency of maintaining rights to the revenue stream in the event
of a bankruptcy of SCO." This could be interpreted in several ways (some of
which are alluded to in the next two pages). I do not see how any of those
interpretations are helpful to SCO. It also contains the escape-word
"specific." Perhaps you (or one of the attorneys posting here) could
explain more about who caught whom in this exchange.

All in all, I got a chuckle out of reading this deposition. Alter is an artful
dodger, as I said. Normand was constantly trying to entrap him or to pin him
down, and he equally constantly danced out of the way. It appears to me that
Normand met his match this time.

[ Reply to This | # ]

Sandy seems a bit confused in Exhibit 3
Authored by: Anonymous on Wednesday, June 27 2007 @ 06:02 AM EDT
"2. On September 29, 2007, another SCO engineer and I installed into a
computer system the SCO UnixWare Application Server Version 2.1. My
understanding is that SCO previously produced a copy of this operating system to
Novell in this litigation."

Doesn't this date strike anyone as odd? How carefully would you proof-read a
signed statement to a court?

[ Reply to This | # ]

Exhibit 3 says "Filed under seal"
Authored by: Anonymous on Wednesday, June 27 2007 @ 07:14 AM EDT
Exhibit 3, the declaration of Sandeep Gupta, clearly says "Filed under
Seal". Why is it now available in a totally unredacted form?

[ Reply to This | # ]

SCO's Supplemental Exhibits in Support of PSJ Motion on 1st, 2d, 5th Causes of Action
Authored by: Anonymous on Wednesday, June 27 2007 @ 10:28 AM EDT
The real "win" for Novell in the Aaron Alter deposition is in what is
'not' on the page.

Aaron Alter is called as a Rule 30 b 6 witness, so he is a 'representative'
witness speaking collectively for the law firm of Wilson Sonsini. SCO is trying
to get an admission out of him, which they fail to do, about interpreting the
Novell-Santa Cruz agreement to read that the copyrights did transfer.

What is 'not' on the page, or in any evidence that SCO produces, is any
deposition testimony from the lawyer who actually represented Santa Cruz -- his
name was Jeff Higgins, and Jeff was the lawyer who actually exchanged the final
negotiated versions of the docs with Novell's outside counsel, Braham.

That 'silence' on the part of SCO's evidence is very telling -- it tells the
court that what Higgins would say would be devastating to SCO's case.

That's why, in the June 4 hearing, atty Jacobs had this to say to the Judge:
Jacobs, in arguing that Santa Cruz did NOT bargain for the copyrights and
allowed them to be excluded, said:

"There's a document showing the revised exhibit going over to Jeff Higgins,
Jeff Higgins, the lawyer for Santa Cruz on the deal, an empty chair before Your
Honor. We have no substantial evidence from anyone on the Santa Cruz side, who
was actually doing the last several weeks of negotiations, to explain how it is
that the copyrights were excluded from the deal, from their standpoint."

Jacobs was pointing out that, although SCO collected a lot of inadmissible
extrinsic evidence from execs, SCO provides absolutely no testimony at all from
Higgins, and it was Higgins who OKed the Excluded Assets list for the Santa
Cruz
side.

An "empty chair", indeed!!


LEXLAW

[ Reply to This | # ]

INVOKE PJ /elders Roll Call of the not lawyers?
Authored by: LaurenceTux on Wednesday, June 27 2007 @ 11:09 AM EDT
Can we get a list of the whos who of all the witnesses and such with the docs
attached/cross referenced?

(psst side note any word as to some gavel action on the PSJs??)

[ Reply to This | # ]

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