[comp.sys.sun] SunOS Licence Transfers On Used Equipment

scs@itivax.iti.org (Steve Simmons) (10/20/89)

Some local folks were looking at the idea of buying some used 3/50s direct
from a vendor, then building our own shoeboxes and having nice Suns at
home.  We just recently ran into a snag, and I want to pass on the info to
the world at large.

The data presented here comes from our Sun salesman, who has kindly
researched the issue for us.  The presentation is by me; so there may be
errors in my memory or notes.

[[Note:	I'm mad as hell, but am trying to avoid flaming.  This posting is
intended to (a) be informational, and (b) an attempt to get enough people
complaining that Sun will change the policy.]]

The facts from Sun:

When you purchase a Sun, you get a right-to-use licence for SunOS.  This
licence is specific to the hardware (CPU ID#) and purchaser.  The licence
is not transferable by the purchaser.  This means that when the hardware
is resold into the used market, the right to use licence does not go with
the machine.  This licence is purchasable from Sun for $1000.00.  It does
not include docs and media.  If you buy a used system from Sun, right to
use is included.

The facts from used equipment sellers:

Most current used equipment vendors are aware of this limitation.  If you
buy a system from a used equipment vendor, you don't get a licence.  While
the vendors don't exactly advertise this fact, they don't attempt to
conceal it either.  The vendors are under no obligation to ensure you have
a licence, since they don't sell you software.

End of facts, beginning of speculation:

So what happens with this used equipment?  It appears the bulk is sold
into sites where other equipment is already in place.  The buyers simply
copy the software they already have and ignore the issue of right-to-use
licence.

Sun policy on this is not completely clear -- they are neither turning a
blind eye nor attempting to play policeman.  No-one I contacted knew of a
case where Sun had noticed newly purchased used equipment and asked the
buyer to pay for licence.

What about OEMs?  An OEM is clearly reselling licences for SunOS.  This
clearly means I could buy a used 3/50 from an OEM and he could deliver a
licence with it; but a University could not.  How do you University folks
feel about that?

End of speculation, beginning of editorial:

I feel this policy is terrible.  DEC, by contrast, traditionally allowed
the transfer of licence with machines.  A year or two ago they attempted
to restrict this, then went back to permitting it after a firestorm of
criticism (the DEC used equipment market is *huge*).

Sun appears to be double-dipping.  When you buy a Sun, you are paying for
a licence (it's in the hardware price).  You can't transfer the licence
from one Sun to another -- every time you buy new equipment, you're buying
another licence.  You can't sell the licence, either -- you can sell the
hardware, but the licence stays with you.  So institutions that are
selling off used 3/50s have a lot of extra licences piling up.  Meanwhile,
when someone buys a right-to-use licence from Sun for their purchased of
used equipment, Sun gets paid *again* for a licence on the same hardware.

It is to Suns advantage to allow licence transfers.  This will have a
number of benefits, mostly meaning increased business for Sun:

First, it increases the worth of old equipment.  This means sellers get
higher prices, and in turn they plow that money into new equipment.

Second, it increases the usefulness of old equipment.  This means that
small businesses (like me) can buy the equipment and make full use of it.
When we get rich and successful and can *afford* the up-to-date stuff,
odds are real good we'll preserve our software investment and get new Suns
-- particularly if we can take advantage of Suns nice trade-in deals.

Third, while pursuing the present policy Sun manages to (a) look greedy,
(b) look unco-operative, (c), look inconsistant in treatment of used
equipment between VARs and non-VARS.

Fourth, the present policy brings in very little money (this according to
my copious sources).  This is largely due to non-enforcement (whether
concious or not).  Attempting to enforce the policy will earn Sun a lot of
ill will and very little money.

In short, Sun has an unfair policy which they dare not enforce
consistantly.  It is to the benefit of all to change that policy.

I never normally issue disclaimers, but:

Steven C. Simmons, speaking on behalf of himself and his consulting business,
but not on behalf of his employers or clients.