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Debacle, Decision, and Driver:
SCO-Novell-Unix-Linux Open Source Market Impacts
Document:
MKT-379
Perspective Summary: On August 10, 2007, U.S. federal Judge Dale Kimball issued a summary judgment in the case of SCO v. Novell, stating that "Novell is the owner of the UNIX and UNIXWare copyrights." Among other findings, SCO was found to be in breach of its licensing agreement with Novell and required to pay nearly $25 million in royalty payments to Novell. The ruling cast further doubt on SCO's claims that IBM and Linux infringe on any SCO-copyrighted source code. Since 2002, Saugatuck research regarding open source adoption has found repeated and frequent mentions of this landmark – and messy – case as an important inhibitor to the adoption and use of open source software. The conventional, common wisdom was that the SCO case represented not only an inhibitor by itself, but also represented a powerful market uncertainty regarding open source. In reality, recent Saugatuck buyer demand research (conducted this summer) shows exceptional growth in the adoption and use of open source software, from tools to applications to operating systems to SaaS platforms. It appears that when it comes to open source adoption, the SCO case was more likely, to quote Shakespeare, “full of sound fury, signifying nothing.” |
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