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a) Entrapment is a concept only in criminal law and does not apply here. The question is whether they are misrepresenting that the use of the download is free. I don't have any of the details so I can't really comment.
b) I am sorry that you have been so personally affected by all of this; you are not alone, to be sure. I am unaware of any legally recognized claim for harrassment under these circumstances. If SCO knew that you were a developer/designer, that its actions were interfering with your business relationships and that SCO intended to adversely affect those relationships, you might have a claim for intentional interference with economic relations. Such a claim seems like a stretch given what appears in your e-mail.
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