WTF? Microsoft licenses SCO IP

19May03

CNET is reporting that:

Microsoft is acquiring the rights to Unix technology from SCO Group, a move that could impact the battle between Windows and Linux in the market for computer operating systems.
[snip]
Late Sunday, Microsoft general counsel Brad Smith said acquiring the license from SCO “is representative of Microsoft’s ongoing commitment to respecting intellectual property and the IT community’s healthy exchange of IP through licensing. This helps to ensure IP compliance across Microsoft solutions and supports our efforts around existing products like services for Unix that further Unix interoperability.”

This is a thoroughly puzzling event. Has Microsoft acquired SCO’s IP, or are they merely licensing it to cover any possible infringement on their part?

Acquiring SCO’s IP doesn’t make any sense. It’s only value to Microsoft is as FUD fodder. Microsoft doesn’t need to own the IP to obtain the FUD benefit, and from a PR perspective they are better off not being involved in any anti-Linux lawsuits.

Licensing SCO’s IP to protect against potential infringement by Microsoft products doesn’t make much sense either. Remember Microsoft Xenix? Microsoft licensed Unix from AT&T, the original Santa Cruz Operation was founded with Microsoft VC to maintain Xenix. It’s difficult to believe that Microsoft has somehow violate IP that it licensed or originated decades ago.

Heck, even if Microsoft has violated SCO’s IP, it’s not like Microsoft to just roll over when someone threatens a lawsuit.

I smell a conspiracy to spread anti-Linux FUD, this license being the pay-off.

Update: It’s just a source / patent license, not an acquisition. The Inquirer explains the conspiracy angle:

Is Microsoft going to release a version of UNIX? After all that time and money burned on Windows NT, XP, and CE? Hardly. Instead, Microsoft can feed money into cash-strapped SCO so they can keep their lawsuits burning for a few more years and see if that scares away anyone from Linux. If they get really lucky, SCO’s suits put a dent into corporate Linux through sheer FUD, thereby selling more Microsoft servers. While the big boys - HP and IBM - have their own versions of UNIX, they had been rapidly swinging their boats to Linux.

If necessary, Microsoft can keep its hands clean of the firefight by continuing to “expand” its license agreement with SCO by writing more checks. Since Microsoft has more cash on hand than any three companies would know what to do with, they can simply feed the anti-Linux effort with a couple of days interest per month. If SCO loses, Microsoft can write off the expenses as noise.

This is realpolitik at its best. If Microsoft bought SCO outright and then started to sue IBM and other Linux companies outright, well, that might be a little much even for the U.S. Department of Justice to stomach, much less the Fortune 500. And the EU would likely use it as the final straw to put heavier sanctions onto Microsoft in Europe.

Seeing the conspiracy theory validated by The Inquirer somehow makes it seem less credible, but… It’s still the only explanation that makes any sense.

2 Responses to “WTF? Microsoft licenses SCO IP”


  1. 1 Paul Begley Posted May 20th, 2003 - 9:41 am

    This is not a big deal, Microsoft has licensed various code from *NIX vendors for years. I used to beta test ‘back in the day’ for SCO and they licensed technology from Microsoft as well.

    I think the speed with which this was announced is a little funny, but given the nature of the announcement, I’m willing to bet Microsoft got very advantageous terms and conditions for what they licensed.

  2. 2 Bryce Posted May 21st, 2003 - 4:31 pm

    “Back in the day”, SCO’s Unix products were based on MS Xenix.

    Bruce Perens on CNET pushes the FUD-bribe angle, Dan Haught rebuts with “prove it.”
    http://news.com.com/2010-1071-1007758.html
    http://news.com.com/2009-1081_3-1008103.html

    Joshua Allen, a Microsoft employee, points out that there is a difference between leveraging and orchestrating.
    http://www.netcrucible.com/blog/2003/05/19.html#a329

    Phillip Windley reminds us that today’s SCO is the former Caldera, the company that inherited the old DR-DOS lawsuit.
    http://www.windley.com/2003/05/20.html#a627

    Conspiracy or not, the only obvious purpose to Microsoft’s licensing deal with SCO is to generate anti-Linux FUD. Microsoft has a long history of paying for FUD and letting the courts settle IP issues.

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