[CLUE-Talk] HP to Protect Customers from Linux Claims

Kirk Rafferty kirk at fpcc.net
Wed Sep 24 12:40:42 MDT 2003


On Wed, Sep 24, 2003 at 10:46:35AM -0600, Joe 'Zonker' Brockmeier wrote:
> On Wed, 2003-09-24 at 10:20, Kirk Rafferty wrote:
> > Frankly, I'm surprised IBM didn't protect their customers from the outset.
> > It would have demonstrated that IBM are not only serious about Linux, but
> > would have also discouraged SCO from suing end-users willy-nilly.  IBM
> > may have even landed some hardware and/or support deals from the deal.
> 
> You're kidding, right? This whole imdemnification thing is massive FUD. 

No, I'm not kidding at all.  Whether we like it or not, the issue
of indemnification has gained traction.  If enough customers want
indemnification, well then, that's what a free market is all about.

If IBM "had taken the bait" early on, much of the (hot) air in SCO's sails
would have evaporated.  IBM could say "we're so confident that we're right,
we'll indemnify our customers."  Then the whole "GPL is bad for business
because nobody will protect you" argument would have never come up.

And if IBM are covering legal costs for 1,500 customers, that's 1,500
customers that sure are happy they chose IBM.  And when SCO loses,
that's 1,500 countersuits, or however the lawyers want to handle it.
In the end, other companies know not to fsck with IBM or their customers,
and IBM can show potential customers the "value add" you get with IBM.

> > This might be the time for Red Hat to jump into the fray, and indemnify
> > anyone running Red Hat Enterprise with a current RHN contract.  It would
> > be a great reason for anyone running the "hobbyist" version in a production
> > environment to upgrade.
> 
> Yeah, I'm sure RH has the spare bucks sitting around to deal with the
> influx of lawsuits. 

I don't know the answer to that.  Certainly indemnifying customers is a
liability, and perhaps it's the potential costs that keep Red Hat from
doing it.  My point is that Red Hat, if they were in a position to do
it, would gain a lot of good will (and RHN subscriptions) if they were
to indemnify RH Enterprise customers.

Whether indemnification is FUD or not isn't the real question.  It may
well be, but it needs to be addressed.  If enough customers feel they need
indemnification, then the company that can provide it stands to make money.
They also incur some risk, but then that's what business is all about.

-k



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