1. Open Source Software at Samsung Minsuk Choi 2008. 03. 01 - Changes from a closed-model to a collaborative and open-model -

2. 2 / 11 Agenda - Open Source Software? - Motivation - Challenges - Changes - Conclusion - Q & A

3. 3 / 11 Open Source S/W? Definition: Freely available S/W under “LICENSES” that allow us to use and share the source code –Examples: Linux, Apache web server, Firefox browser, Eclipse IDE, MySQL, and so on. –170,262 registered projects at sourceforge.net as of Feb, 2008 Status –“Open source poses the greatest competitive challenge to Microsoft” (Microsoft CEO, Steve Ballmer) –Google’s Android Platform: Linux-based Open Source Solution –Smartphone M/S (IDC, 2007) - Linux Mobile Phone Platform Platform Vendor (Alliance) Products MaemoNokia N770, N800, N810 MOTOMAGXMotorola MOTOROKR Z6 MOTORAZR2 V8 MoblinIntel-

4. 4 / 11 Motivation “Soft Competitiveness Enhancement”: Changes from hardware-centric business to design and software centric business Problems –Lack of core technologies such as Operating System and Quality Assurance –Vendor locked-in S/W development practices –Lack of skilled system S/W engineers –Rapidly increasing cost of S/W development Open source was a strategically great option for Samsung to enhance its software competitiveness.

5. 5 / 11 Challenges (1/4) Didn’t know what to do with the available source codes –Strategic Alliance with MontaVista in 2003, an Embedded Linux company –Training and technology transfer (Kernel, Device Drivers, QA,...) IBM vs SCO Linux Lawsuit –On March 6, 2003, SCO Group (formerly known as Caldera Systems) filed a $1 billion lawsuit in the US against IBM for allegedly “devaluing” its version of the UNIX operating system by contributing source codes to Linux community –On January 20, 2004, SCO filed a lawsuit against Novell, requiring Novell to assign to SCO all UNIX copyrights Implications 1.Linux users have to pay royalties to SCO to avoid infringement of UNIX copyrights. 2.Linux is no more open source software.

6. 6 / 11 Challenges (2/4) IBM vs SCO Linux Lawsuit (Continued) –Samsung’s open source strategy was reconsidered and open source projects were suspended –Nobody was sure about the result of the lawsuit –Several open source projects were cancelled and a few business units gave up the open source strategy –On August 10, 2007 Judge Kimball, who also presides over the SCO v. IBM case, ruled that Novell, not the SCO Group, is the rightful owner of the copyrights covering the Unix –After the ruling Novell announced they have no interest in suing Linux users and stated "We don't believe there is Unix in Linux." Implication Legal integrity of Linux was officially confirmed by US court.

7. 7 / 11 Challenges (3/4) Open Source Licenses –Open Source S/W is freely available to anyone under “LICENSES” which impose users some restrictions such as the duty of sharing derivative works Early Stage: “Just use open source. There will be no problem.” Individual engineers were using open source for their own convenience. Vague Awareness / Uncertainty: “Are there any restrictions in using open source?” “We should not use open source.” Consulting and education from IP experts in US. No expert who has understanding in both S/W technology and IP law in Korea. Implication: Possibility of unintentional license infringement or intellectual property issue

8. 8 / 11 Challenges (4/4) Certain Understanding: “We can use open source only if we keep the rules of the communities.” Release of “Open Source S/W Guideline” New rules for S/W Development Process Open Source Council consisting of IP experts, project leaders, and technology strategists Implementation of Blackduck Tool for monitoring illegal source codes incorporated into products Training

9. 9 / 11 Changes S/W enabled business strategy –Strategic opening the source code of flash memory for industry standard Active use of open source and sharing source codes –In-house developed codes based on open source –Products: Phone (SGH-i800, May 2008), PVR, PMP, Digital TV, etc –Consortium: LiMO Foundation, CE Linux Forum, etc Lower royalty of commercial S/W platform vendors –MS Shared Source License Active involvement in S/W development forums and communities

10. 10 / 11 Conclusion Open source has been the right choice for Samsung so far. Still a long way to go in terms of legal issues and technology gap.

11. 11 / 11 Q & A