Fans of open-source software have let out a sigh of relief after a court ruling quashed a legal threat to the Linux operating system. The ruling shows Novell (not SCO) is the true owner of Unix copyrights. But did SCO know that?
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a 102-page ruling, U.S. District Judge Dale Kimball recently found the computer operating system Unix is rightfully owned by Novell. The court case involved a debate over who actually owned the source code, after Novell licenced it to Santa Cruz Operation (who later became SCO) in 1995.
SCO argued it had also purchased the copyrights in the transaction.
The case got muddy after SCO said IBM should pay the company billions in royalties, arguing IBM took code from Unix to be used in the operating system Linux.
But the judge disagreed with SCO's claim to the copyrights, saying Novell had been very careful not to sell ownership.
And according to CBR, the judge's ruling also suggests SCO knew it didn't own the copyrights to Unix.
In his decision, Kimball said, "On January 4, 2003, [SCO CEO Darl] McBride received an email from Michael Anderer, a consultant for SCO retained to examine its intellectual property. Anderer stated that the [agreement between Novell and Santa Cruz] 'transferred substantially less' of Novell's intellectual property than Novell owned."
He also said, "Anderer noted that Santa Cruz's 'asset purchase' from Novell 'excludes all patents, copyrights, and just about everything else'. Anderer cautioned that '[w]e really need to be clear on what we can license. It may be a lot less than we think'."
Forbes reports virtually all of SCO's business is Unix-related, and after the ruling fell in Novell's lap, shares of SCO Group tanked, dropping 72.8 per cent.
Unlike commercial software or operating systems, open source technologies are free to download and be used or improved by anyone.
Joe LaSala, general counsel for Novell, said Novell is a Linux provider and his company sees no conflict between Unix and Linux.
He told CNN, "We are Linux and open-source advocates. I think (the ruling) is a seminal event in the history of Linux. It speaks well to the future of Linux."
Linux is the most popular open source operating system. Usually used on servers, Linux made up nearly 13 per cent of all server revenue according to IDC. Many IT environments choose Linux over a Microsoft Windows-based operating system to avoid steep licencing fees.
Unix was first developed by AT&T who permitted its copying and creation of multiple versions that soon leaked into the public domain.
Linux Torvalds, a Helsinki college student, wrote a version of the program in the early 1990s, calling it "Linux." The student posted it freely on the Internet and invited other programmers to improve upon it.