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

[Joe 'Zonker' Brockmeier]

On Wed, 2003-09-24 at 12:40, Kirk Rafferty wrote:
> 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.

Or, perhaps it would be wiser to try to educate those customers rather
than playing SCO's game. 

I'm not sure how much traction this issue has gained, either -- I'm not
working in IBM's sales department, so it's hard to say how many calls
they get saying "we'd like to buy stuff from you, but..." It's gained
traction in the press and with some of the bone-headed analysts, but I'm
not sure it's all that hot an issue with corporate customers -- or maybe
it is. 

IBM would be wiser to conduct a PR campaign to fight off the FUD rather
than playing SCO's game. 

> 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.

The argument needs to be dealt with and done away with now -- as long as
we continue to let SCO, MS and Sun set the terms of debate, we're in
trouble. IBM has chosen the right strategy, long term. 

> 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.

That's a pretty hefty legal bill that IBM would be stuck with when SCO
goes under. I'm betting that, by the time all is said and done, SCO will
be the financial equivalent of a smoking crater in the middle of Utah. 

> > > 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.

Addressed, yes -- capitulated to, no. 

The next step is to say that IBM needs to indemnify all Linux customers
for possible patent infringement claims, because that will be the next
legal hurdle for Linux. Do you think they want to go down that road? I
don't think so. Sure, IBM can use its patent portfolio to battle it out
toe-to-toe with MS or any other company that actually produces products
-- but what happens when a patent-holding company decides that they're
going to test out their patents on Linux? Again, massive legal fees with
little chance to recoup them when/if IBM is successful.

If IBM gives in to this whole FUD campaign, they're just giving SCO
extra bargaining power. "Settle up, or we start suing your user base."
Uh-uh. Dumb move. 

Zonker 
-- 
Joe 'Zonker' Brockmeier
jzb at dissociatedpress.net
Aim: zonkerjoe
http://www.dissociatedpress.net