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By Graeme Wearden
Posted on ZDNet News: Aug 10, 2004 2:00:00 PM

The threat of higher fees may now be the only way to prod more companies into buying SCO Group licenses because further lawsuits have been put on ice.

SCO is hinting that it may soon raise the cost of its intellectual property (IP) licenses, which it says companies running Linux need to buy in order to avoid being sued.

Many in the open-source community have been angered by SCO's ongoing claim that its proprietary Unix code has been illegally included within Linux. The company is currently involved in legal action against IBM, Novell and AutoZone.

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Darl McBride, SCO's chief executive, revealed last week that his company isn't planning to bring more lawsuits anytime soon. This admission has led to speculation that there is now no incentive for companies to move quickly to protect themselves against SCO's lawyers.

SCO has a plan to try and counter such complacency.

Blake Stowell, SCO's public relations director, said companies that elect to sit tight and see if SCO wins could end up out of pocket.

He told ZDNet UK that SCO is "evaluating" its SCOsource program and could decide to make it much more expensive for companies to indemnify themselves against attack from SCO in the future.

"Companies that license now may be able to do so cheaper than if they do so later," Stowell said.

Two types of IP licenses are currently available from SCOsource: "paid up" licenses that give permanent indemnity, and annual licenses, which vary between one-fifth and two-fifths of the cost of a full version.

SCO may decide not to offer both options in the future and could, for example, decide to insist on an annual payment that would be more lucrative in the long term.

However, interest in the SCOsource program appears to be tailing off. Stowell said that the company expected to announce "six-figure" revenue for SCOsource for its most recent financial quarter. That's a far cry from the days when it gathered millions from licensees such as Microsoft.

This decline could suggest that most companies believe that SCO will lose its various court cases. If this happened, then the company's claim that Linux contains its IP would be in tatters and there would be no need for its SCOsource licenses.

IBM, which is fighting the claim that it violated its Unix contract with SCO by moving proprietary Unix technology to open-source Linux, declined to comment on the news that SCO may increase its SCOsource fees.

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  • Most Recent of 77 Talkback(s)
don't even own scosource.com
If SCO were serious about SCOSource as a business, you would think that they would register the relevent domain name ("scosource.com"), yet they have not. SCO does not own the domain name http://scosource.com... (Read the rest)
Posted by: sco_source_scam Posted on: 10/07/04 You are currently: a Guest | | Terms of Use
SCO's claims...  sbj | 08/10/04
Hey, that list is too short  Chad_z | 08/10/04
I wonder if SCO realizes  Letophoro | 08/10/04
I don't think it is 283 anymore since IBM states  Laff | 08/10/04
Change of heart  Bill4 | 08/10/04
Ah but then IBM is not going after Linux but SCO  Laff | 08/10/04
But  johnnyu | 08/10/04
So true...  msdead | 08/11/04
Minor Correction.  doe_z | 08/10/04
Oops...  doe_z | 08/10/04
Minor Correction II  TlCl | 08/11/04
Spin cycle set to HIGH today..hee hee hee  Laff | 08/11/04
TICI....you're a DOLL:)  Laff | 08/11/04
Thanks for the compliment  TlCl | 08/11/04
Major Correction I  The King's Servant | 08/12/04
One problem  msdead | 08/11/04
They would  johnnyu | 08/11/04
How much is 3 X 0?  No_Ax_to_Grind | 08/10/04
I don't care what anyone says...You ARE funny:)  Laff | 08/10/04
He has his moments...  crocd | 08/10/04
He's even actually right once in a while...  WhoIsDaMan | 08/10/04
To give him his due,  Yagotta B. Kidding | 08/10/04
No one is buying them so price is no issue  rgriffith64@... | 08/10/04
Risks  Solid Water | 08/10/04
Cooking the books  rgriffith64@... | 08/10/04
All along?  KTLA | 08/10/04
SCOsource parody  crocd | 08/10/04
Where is the verification that SCO is paying Novell royalties?  TlCl | 08/11/04
But Novell does not agree that SCO owns what they  Laff | 08/11/04
Excuse me?  TlCl | 08/11/04
It was assertained...  The King's Servant | 08/12/04
Nice summation  AmusedAtItAll | 09/02/04
they own the right to licensing it  aladorn@... | 08/11/04
Ok -- where did you get your figures?  TlCl | 08/11/04
Do a little research yourself  drew32 | 08/11/04
Some kind of joker?  AmusedAtItAll | 09/02/04
I'm speechless.  Xunil_Sierutuf | 08/10/04
Darl mcBride to be crowned worlds greatest gambler  Squawkbox | 08/10/04
Didn't they do this once already?  rpmyers1 | 08/10/04
I'll be glad to buy a license...  msalomon | 08/10/04
If the claims were not supportable, how did the suit get this far?  TlCl | 08/11/04
Man you do like to stretch don't you.....:)  Laff | 08/11/04
Granted  TlCl | 08/11/04
I think what we are all waiting for...  AmusedAtItAll | 09/02/04
Facts, not allegations!  The King's Servant | 08/12/04
Best buy your license now  tic swayback | 08/10/04
We should buy them...frame them and in a few  Laff | 08/10/04
Toilet paper is worth more...  Xunil_Sierutuf | 08/10/04
This company is Hilarious...  BitTwiddler | 08/10/04
SCO is dead ...so hurry up and lie down already  nograin | 08/10/04
Evil  dwest_z | 08/10/04
How many zeroes...  vferrara | 08/10/04
They dropped their IP claims in the lawsuit.  Arrg | 08/10/04
What?  TlCl | 08/11/04
Besides claims what EVIDENCE has SCO shown?  Laff | 08/11/04
Pardon--What phase is the case in?  TlCl | 08/11/04
Do you understand the issues?  The King's Servant | 08/12/04
The next SCO headline will be...  gordon@... | 08/10/04
I think ms is the only one to pay for a license so far  V Sanders | 08/10/04
MS...  nomorems | 08/10/04
... and Sun  TlCl | 08/11/04
Both MS and SUN in one form or another are  Laff | 08/11/04
As are IBM, RedHat, Mandrake, Xandros, etc.  TlCl | 08/11/04
V. I think you just HIT on the plan here!!!  Laff | 08/11/04
On this point, consider that increased license  TlCl | 08/11/04
Blah Blah SCO  nomorems | 08/10/04
Funny that..  Fred Fredrickson | 08/10/04
examine what a license means  TlCl | 08/11/04
Yeah, and that is going to happen in what Bizzaro  Laff | 08/11/04
lol  johnnyu | 08/11/04
Go ahead SCO  msdead | 08/11/04
This reminds me of credit card companies  mlybbert | 08/11/04
SCO:The Movie starring Mel Brooks as Darl McBride  drichards1953 | 08/12/04
Not in this universe  TlCl | 08/13/04
Hey TSG, please sue me!  Rick S._z | 08/12/04
BTW, I AM a business user  Rick S._z | 08/12/04
don't even own scosource.com  sco_source_scam | 10/07/04

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