Copying troubles a hiccup for Linux festival

By 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.