SCO versus IBM and Linux

SCO versus IBM and Linux

Timeline

The information contained in this timeline is from public sources including SEC filings, Press releases and news stories. Most have been authenticated and discrepancies are usually noted. The accuracy is not guaranteed, some exact dates are missing. If you have some event that you feel should be on the timeline or any corrections send it to me at timeline@dvorak.org. If you want to be on my personal mailing list also send a note to me at mailto:forum@dvorak.org

Please do not use this timeline without attribution as cited below.

1993 -- Novell acquires Unix Systems Labs, holder of Unix source code and patents for $332 million.

1994 -- Novell sells fully paid UNIX license to Sun for $81 million. Caldera formed by Bryon Sparks.

Nov. 6, 1995 -- Novell sells UnixWare to SCO for 6.1 million shares of SCO stock.

Jan. 26, 1996 -- Novell files 10-K Annual report outlining sale of UnixWare and making it clear that it "...will continue to receive revenue from existing licenses for older versions of UNIX System source code."

Mar. 12, 1996 -- In Novell's10-Q quarterly report it's clear that the Unix Systems Group at Novell is still intact.

May 15, 1996 -- SCO files 10-Q and says, "In December 1995, the Company acquired certain assets related to the UnixWare business including the core intellectual property from Novell." No explanation can be found for the month discrepancy insofar as sale is concerned and no description of "core intellectual property." Claims it bought the "UNIX business" from Novell.

June 4, 1996 -- Six month Novell10-Q report mention is made of transitioning Unix group folks to SCO. Company continues to collect royalties for Unix. This continues into future SEC filings too.

Mar. 2000 -- Initial Public offering of Caldera stock.

Mar. 23, 2000 -- First meeting between CEO of Caldera, Ransom Love and CEO of SCO, Doug Michels to discuss a relationship between the two companies.

Feb. 21, 2001 -- Caldera files S-4/A with SEC announcing intention to combine with the "services and professional server groups" of the Santa Cruz Operation. SCO will change its name to Tarantella and Caldera will become the holding company Caldera International or New Caldera. Caldera will be a division of New Caldera and SCO will be at the bottom of the whole thing. The rationale for the deal appears to be as a synergetic relationship, cost reduction, and immediate income boost among other things. The document is very pro-Linux.

May 30, 2002 -- United Linux officially formed. Members include Connectiva, SuSe, TurboLinux

Jun. 27, 2002 -- Caldera International, then described as a Linux reseller, announces the Darl McBride as new CEO. Previously he was president of online planning for Franklin Covey. EX-CEO, Ransom Love stays with company to promote UnitedLinux, a consortium incorporating SuSe and others designed to compete with RedHat. Stock Price of Caldera is 60-70-cents a share.

Aug. 26, 2002 -- McBride shows up at the 16th annual Caldera/SCO forum where name change back to SCO was announced. McBride wore black leather jackets, talked about Harleys and bottled water. Asserted importance of Linux. Continued his opinions in this Malcom Dean interview.

Jan. 23, 2003 -- LinuxWorld. IBMers "Linux: Coming of Age", keynote by Steve Mills, Senior Vice President and Group Executive, IBM. On same day Steve Solazzo hosts "Customer Days" special event. Mills says something that ticks off McBride according to McBride in another interview.

Jan., 2003 -- Caldera hires Boies, Schiller and Flexner to "research and investigate possible violations of SCO's intellectual property." Actual date vague.

Jan. 29, 2003 -- 10K annual report filed with SEC asserts pro-Linux stance while mentioning the drawbacks of fragmentation and first mention of "concerns" over intellectual property rights underlying the base Linux code. Stock Price $1.23. Now says 95-percent of revenues comes from UNIX-related sales and service.

Mar. 6, 2003 -- Caldera/SCO announces the filing of $1B lawsuit against IBM, alleging contract violation. Says IBM was moving patented and/or copyrighted UNIX code to Linux offering. Letter sent to IBM giving company 100 days to comply or UNIX license for AIX will be yanked. Says in SEC 8-K that suit was filed by Boies, Shiller , Flexnor. Media reports indicate that superstar litigator David Boies will represent company.

April 7, 2003 -- Caldera/SCO Files form SEC form S-3/A to sell 1 million shares currently owned by shareholders for $1.28.In the document the company outlines risks, including: "unintended consequences of our lawsuit against IBM." Stock deal eventually falls through.

May 2, 2003 -- SCO servers attacked. Press release issued May 6 outlining situation.

May 14, 2003 -- Files 8K with SEC outlining press release saying that it sent out a letter telling large companies that they face action if they use Linux code. Also company says it "Suspends distribution of Linux pending intellectual property clarification." Other media reports that letter was actually sent on May 12 and to 1500 companies.

May 16, 2003 -- Caldera officially proposes to shareholders name change to SCO Group, Inc.

May 19, 2003 -- WSJ reports that Microsoft buys SCO UNIX license and rights to an undisclosed patent. Fee not disclosed. Other reports indicate the license was bought by Microsoft on April 30..One report estimates that Microsoft paid $10 million. Of note: Ed Iobucci of Citrix Systems on the Caldera Board since 2000 has close relationship with Microsoft.

May 28, 2003 -- Reports emerge that Novell CEO Jack L. Messman challenged SCO saying that "contrary to SCO's assertions, SCO is not the owner of the Unix copyrights." The intellectual property always belonged to Novell.

CONTINUATION -- Present

Please refer to highly detailed timeline at Linux Online

COMPLICATIONS

Who owns the Unix trademark? This OpenSource website has the answers and raises new issues.

READING LIST

1. Joe Barr's excellent piece in LinuxWorld is a good place to start.

2. Steven J. Vaughan-Nichols takes a broad look at the squabble with some unique and valuable insights and excellent links to various stories and items. An interesting forum is attached.

3. Always insightful Nick Petreley outlines his conspiracy theory which he developed in some online forums. Within a few weeks other writers were claiming the idea, with none crediting Petreley.

ODD SUBTEXT

Salaries and details of management were held from Jan 29 10K document and filed as a separate "10K/A Amended Annual Report" on 2/28/03/. It reveals that McBride was granted 600,000 shares of stock at an option price of 78-cents. More interesting is the fact that this document shows the actual ownership of SCO with some company called the Canopy Group being at the top of the list with over 5 million shares. It's headed by Ralph Yarrow. "Ralph J. Yarro III has served as a member of the Company's Board of Directors since August 1998. Mr. Yarro has served as the President and Chief Executive Officer of The Canopy Group, Inc. since April 1995. Prior to joining The Canopy Group, Inc., he served as a graphic artist for the Noorda Family Trust. Mr. Yarro holds a BA from Brigham Young University."

Timeline copyright 2003 by John C. Dvorak. Permission to use any or part is universally granted if properly credited

LAST UPDATE June 27, 2004




	The information contained in this timeline is from public sources including SEC filings, Press releases and news stories. Most have been authenticated and discrepancies are usually noted. The accuracy is not guaranteed, some exact dates are missing. If you have some event that you feel should be on the timeline or any corrections send it to me at timeline@dvorak.org. If you want to be on my personal mailing list also send a note to me at mailto:forum@dvorak.org		Please do not use this timeline without attribution as cited below.

	1993 -- Novell acquires Unix Systems Labs, holder of Unix source code and patents for $332 million. 1994 -- Novell sells fully paid UNIX license to Sun for $81 million. Caldera formed by Bryon Sparks. Nov. 6, 1995 -- Novell sells UnixWare to SCO for 6.1 million shares of SCO stock. Jan. 26, 1996 -- Novell files 10-K Annual report outlining sale of UnixWare and making it clear that it "...will continue to receive revenue from existing licenses for older versions of UNIX System source code." Mar. 12, 1996 -- In Novell's10-Q quarterly report it's clear that the Unix Systems Group at Novell is still intact. May 15, 1996 -- SCO files 10-Q and says, "In December 1995, the Company acquired certain assets related to the UnixWare business including the core intellectual property from Novell." No explanation can be found for the month discrepancy insofar as sale is concerned and no description of "core intellectual property." Claims it bought the "UNIX business" from Novell. June 4, 1996 -- Six month Novell10-Q report mention is made of transitioning Unix group folks to SCO. Company continues to collect royalties for Unix. This continues into future SEC filings too. Mar. 2000 -- Initial Public offering of Caldera stock. Mar. 23, 2000 -- First meeting between CEO of Caldera, Ransom Love and CEO of SCO, Doug Michels to discuss a relationship between the two companies. Feb. 21, 2001 -- Caldera files S-4/A with SEC announcing intention to combine with the "services and professional server groups" of the Santa Cruz Operation. SCO will change its name to Tarantella and Caldera will become the holding company Caldera International or New Caldera. Caldera will be a division of New Caldera and SCO will be at the bottom of the whole thing. The rationale for the deal appears to be as a synergetic relationship, cost reduction, and immediate income boost among other things. The document is very pro-Linux. May 30, 2002 -- United Linux officially formed. Members include Connectiva, SuSe, TurboLinux Jun. 27, 2002 -- Caldera International, then described as a Linux reseller, announces the Darl McBride as new CEO. Previously he was president of online planning for Franklin Covey. EX-CEO, Ransom Love stays with company to promote UnitedLinux, a consortium incorporating SuSe and others designed to compete with RedHat. Stock Price of Caldera is 60-70-cents a share. Aug. 26, 2002 -- McBride shows up at the 16th annual Caldera/SCO forum where name change back to SCO was announced. McBride wore black leather jackets, talked about Harleys and bottled water. Asserted importance of Linux. Continued his opinions in this Malcom Dean interview. Jan. 23, 2003 -- LinuxWorld. IBMers "Linux: Coming of Age", keynote by Steve Mills, Senior Vice President and Group Executive, IBM. On same day Steve Solazzo hosts "Customer Days" special event. Mills says something that ticks off McBride according to McBride in another interview. Jan., 2003 -- Caldera hires Boies, Schiller and Flexner to "research and investigate possible violations of SCO's intellectual property." Actual date vague. Jan. 29, 2003 -- 10K annual report filed with SEC asserts pro-Linux stance while mentioning the drawbacks of fragmentation and first mention of "concerns" over intellectual property rights underlying the base Linux code. Stock Price $1.23. Now says 95-percent of revenues comes from UNIX-related sales and service. Mar. 6, 2003 -- Caldera/SCO announces the filing of $1B lawsuit against IBM, alleging contract violation. Says IBM was moving patented and/or copyrighted UNIX code to Linux offering. Letter sent to IBM giving company 100 days to comply or UNIX license for AIX will be yanked. Says in SEC 8-K that suit was filed by Boies, Shiller , Flexnor. Media reports indicate that superstar litigator David Boies will represent company. April 7, 2003 -- Caldera/SCO Files form SEC form S-3/A to sell 1 million shares currently owned by shareholders for $1.28.In the document the company outlines risks, including: "unintended consequences of our lawsuit against IBM." Stock deal eventually falls through. May 2, 2003 -- SCO servers attacked. Press release issued May 6 outlining situation. May 14, 2003 -- Files 8K with SEC outlining press release saying that it sent out a letter telling large companies that they face action if they use Linux code. Also company says it "Suspends distribution of Linux pending intellectual property clarification." Other media reports that letter was actually sent on May 12 and to 1500 companies. May 16, 2003 -- Caldera officially proposes to shareholders name change to SCO Group, Inc. May 19, 2003 -- WSJ reports that Microsoft buys SCO UNIX license and rights to an undisclosed patent. Fee not disclosed. Other reports indicate the license was bought by Microsoft on April 30..One report estimates that Microsoft paid $10 million. Of note: Ed Iobucci of Citrix Systems on the Caldera Board since 2000 has close relationship with Microsoft. May 28, 2003 -- Reports emerge that Novell CEO Jack L. Messman challenged SCO saying that "contrary to SCO's assertions, SCO is not the owner of the Unix copyrights." The intellectual property always belonged to Novell. CONTINUATION -- Present Please refer to highly detailed timeline at Linux Online		COMPLICATIONS Who owns the Unix trademark? This OpenSource website has the answers and raises new issues. READING LIST 1. Joe Barr's excellent piece in LinuxWorld is a good place to start. 2. Steven J. Vaughan-Nichols takes a broad look at the squabble with some unique and valuable insights and excellent links to various stories and items. An interesting forum is attached. 3. Always insightful Nick Petreley outlines his conspiracy theory which he developed in some online forums. Within a few weeks other writers were claiming the idea, with none crediting Petreley. ODD SUBTEXT Salaries and details of management were held from Jan 29 10K document and filed as a separate "10K/A Amended Annual Report" on 2/28/03/. It reveals that McBride was granted 600,000 shares of stock at an option price of 78-cents. More interesting is the fact that this document shows the actual ownership of SCO with some company called the Canopy Group being at the top of the list with over 5 million shares. It's headed by Ralph Yarrow. "Ralph J. Yarro III has served as a member of the Company's Board of Directors since August 1998. Mr. Yarro has served as the President and Chief Executive Officer of The Canopy Group, Inc. since April 1995. Prior to joining The Canopy Group, Inc., he served as a graphic artist for the Noorda Family Trust. Mr. Yarro holds a BA from Brigham Young University."
	Timeline copyright 2003 by John C. Dvorak. Permission to use any or part is universally granted if properly credited LAST UPDATE June 27, 2004