LinuxSA Mailing list archives

  From: Glen Turner <glen.turner@aarnet.edu.au>
  To  : linuxsa <linuxsa@linuxsa.org.au>
  Date: Thu, 03 Jul 2003 13:20:49 +0930

"Copying troubles a hiccup for Linux festival"

Not a SCO story, read past the SCO references for the meat
of the article.


Copying troubles a hiccup for Linux festival
http://www.nzherald.co.nz/storydisplay.cfm?storyID=3510183

The New Zealand Herald
2003-07-01
Richard Wood

CD duplication company Software Images has refused a request to copy
500 Linux software CDs for a Linux Installfest this Saturday, because
of concerns the job would breach a contract with Microsoft and
infringe intellectual property rights.

New Zealand Open Source Society member Eden McKee approached Software
Images to have a CD replicated containing Linux variant Knoppix and
Microsoft Office competitor Open Office.

But when he arrived with the materials last week, Software Images
declined to do the job. Society president Peter Harrison then made a
separate request for Software Images to do the work.

Correspondence obtained by the Herald shows Harrison was told by
Software Images' account manager Dean Baker that "your content will be
no problem to replicate".

But he then backtracked, saying there may be an issue due to a
"replication agreement" with Microsoft.

On Thursday he said the replication was not a problem, but Software
Image's e-fulfillment services (if they were required) could not be
offered.

Yesterday Software Images declined to do the job, citing intellectual
property concerns.

When questioned by the Herald on Friday, Software Images chief
executive Allan Morton said his company's wariness of Linux was due to
legal action between SCO and Linux over intellectual property issues.

"[The media] has made us aware that there is litigation around this
software."

Morton said it was the customer's obligation to show they had the
necessary rights and his company could only replicate "properly
licensed and owned intellectual property content".

Harrison said the SCO lawsuit was not about copyright.

"There are no allegations that there are any copyright violations in
Linux," he said, adding that the Open Source community was committed
to making sure intellectual property rights were respected.

Software Images general manager David Hill denied there was a
non-compete agreement with Microsoft.

But the existence of a 15-page contract with a non-compete clause was
confirmed by Microsoft competitive strategy manager Brett Roberts.

He said that there was language in the contract that related to
Microsoft competitors such as IBM, Oracle, and Sun Microsystems.

He said Software Images did some "clever logistical work" that
provided a competitive advantage for Microsoft in the market.

"We view them as a critical strategic partner, not just a supplier."

Roberts would not disclose the wording of the non-compete clause,
claiming commercial confidentiality.

Roberts said the contract with Software Images did not contain
anything that prevented Software Images working with the Open Source
Society or pressing Linux CDs "or anything like that".

He said Software Images made their decision before talking to
Microsoft "for their own reasons".

"It's very much a Coke/Pepsi situation. If you are an ad agency
dealing with Pepsi you don't pick up business with Coke."

When the Herald pointed out that Open Source software was a competitor
to Microsoft, Roberts said: "I guess so, but the NZ Open Source
Society isn't."

Asked whether the agreement would prevent locally owned competitors to
Microsoft from pressing their disks at Software Images, Roberts said
that he didn't know the intention behind the agreement.

Later, he said Microsoft's lawyers' advice was: "It's conjecture. It
depends on who, what, when, the technology, and a whole bunch of
things and the Herald is not a good place to get into a legal
discussion."

Roberts said "like all good non-compete clauses it isn't [clear
cut]. Each situation will have to be evaluated case by case".

"The important thing would be for companies to have that discussion
with Software Images, not make decisions based on a [story] in the
Herald.

The Herald wanted to discuss the issue further with Software Images,
but calls yesterday were not returned.

Vaughan Stebbing of CD duplication firm Stebbing Recording Studio said
his company had copied Linux disks and he wasn't aware of any
copyright issues relating to the software.

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