[olug] SCO Extortion Racket

David Walker linux_user at grax.com
Tue Jul 22 11:33:51 UTC 2003


This is what is otherwise known as a protection racket.

Let us look at the facts.
SCO/Caldera was until recently a Linux contributor and distributor.
SCO/Caldera continues to distribute the GPL licensed kernel in both source and 
binary form via their ftp site.  You cannot distribute the software under the 
GPL and yet make claims that you own some piece of it which you are not 
releasing under the GPL.
(See also http://www.opensource.org/sco-vs-ibm.html )

Racketeering includes obstruction of interstate commerce by fraud, robbery or 
extortion and travel or use of the mails with the intent to facilitate 
unlawful activity.  SCO's actions in soliciting protection money would 
certainly fall under extortion.

RICO (the federal racketeering law) includes both criminal and civil penalties 
so not only could SCO employees (and possibly investors depending on their 
involvement) face federal prison time and fines, they could also face civil 
suits.

'The federal extortion statue, known as the Hobbs Act, prohibits "the 
obtaining of property from another, with his consent, induced by wrongful use 
of actual or threatened force, violence, or fear, or under color of official 
right"'
(from 
http://icreport.access.gpo.gov/cgi-bin/getpage.cgi?position=page&page=443&dbname=icreport_babbitt
)

On Monday 21 July 2003 11:57 am, Mike Peterson wrote:
> SCO readies new Linux licensing program
> http://itw.itworld.com/GoNow/a14724a81681a137484515a4
>
> The SCO Group Inc. is preparing a new Linux licensing program that it
> claims will allow users of the open-source operating system to run Linux
> without fear of litigation.
>
>
> SCO's Darl McBride: We have the copyrights
> SCO's controversial CEO spoke last week with News.com's Charlie Cooper and
> me about the status of his company's suit against IBM for allegedly
> infringing on its Unix patents and copyrights. During the exclusive
> interview, McBride discussed what comes next in the fractious legal battle
> and announced that SCO has obtained key Unix copyrights that were in
> question in recent weeks. He also discussed the possibility of charging a
> licensing fee on all commercial users of the 2.4 version of the Linux
> kernel.
>
> http://ct.com.com/click?q=05-gD6LIG8UCtMJ.NRDKIBFxOYoi4vU
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