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Darl McBride Interview

mpsmps writes "vnunet.com has a long interview with SCO CEO Darl McBride devoted entirely to the SCO/IBM suit. McBride radiates confidence, describing SCO's contracts as "bullet-proof." He says he thinks IBM is desperate to buy SCO because "the last thing [IBM wants] to hear is the testimony that is going to come out," but that SCO isn't interested in being acquired. Read the interview for much more on these and other topics." See also part 2 and part 3 of the interview.

20 of 463 comments (clear)

  1. SCO: The new 'Military Intelligence' by Buran · · Score: 5, Interesting

    ... that is to say, they're a living oxymoron.

    If SCO isn't interested in being acquired, then why are they sure acting like they are? All this posturing is pointing to wanting to be bought out to make them shut up.

    1. Re:SCO: The new 'Military Intelligence' by Anonymous Coward · · Score: 5, Interesting

      SCO is a public company (I actually shorted their stock at $11), and the CEO has little say whether his company will be acquired as long as someone offers a good deal. It is up to the shareholders to vote. The CEO has a little room to turn down an offer, but if it is a good offer, shareholders can sue the CEO for breach of fiduciary duty (duty of care state violation).

      If you want to hear some info on how SCO makes money, listen to their conference call here: http://biz.yahoo.com/cc/0/30510.html

      They said Caldera Linux was only 3-5% of their revenue, with the rest coming from UNIX licensing.

      - P.S. I'm in the legal profession.

  2. Bottom Line by idiotnot · · Score: 4, Interesting

    It is not a matter of reeling in compensation for this. It's a question of what form it takes - the form of settlement - if it goes all the way to litigation. Those are, to me, more the unknowns.

    IBM is going to string this out as long as possible, and won't settle. Why? Because SCO's continued existence as a company depends upon revenue from this case. It's the same reason they aren't suing other people (Apple, Microsoft, and the BSD's have been mentioned as targets, and one can infer from other comments that SGI is a target too); they don't have the money to carry on this long litigation.

    In some respects, going after IBM first is unwise. If, in fact, SGI is a target, there would be a much greater chance of SCO winning, and getting some money. SGI doesn't have much money to give, but you start to establish some precedent.....

    1. Re:Bottom Line by jkrise · · Score: 4, Interesting

      "OTOH, consider the possibility that Microsoft is the one sponsoring this case... Chris Sontag said that Microsoft could be a future target"

      The first rule while decoding statements from SCO should be to match it up with their actions. I agree that SCO indeed claimed that MS could be a future target. But their actions --while sending 1,500 letters to big Corporates about the dangers of using Linux, but omitting Windows, seem to indicate that the MS-target statement was mere eyewash.

      "the agreement between MS and SCO is only for a few libraries. "

      Then why didn't SCO mention Windows in their infamoust Letters to Corporates?? After all, there are more stupid Windozers than brainy Linuxers out there.

      "Yes, MS's move to license Services for Unix probably was a token to SCO. But SCO seems eager to bite the hand that feeds it."

      SCO never owns any of the stuff related to Services for Unix - nfs, X-Window environment etc on Windows. Most of these are owned by Sun. There is no clear indicateion from SCO, MS, Slashdot or the press - as to what exactly did MS license or negotiate or deal with SCO. All this is conjecture.

      SCO doesn't appear eager to bite the hand that feeds it - it is trying to deceive people into thinking it's a dirty crook that can outwit bigger crooks (such as 800lb gorillas).Reading your post, I get the impression SCO has claimed atleast one victim.

      Unfortunately for SCO, most Linux users have enough chutzpah, and a healthy Dirtier-Than-SCO attitude - so all SCO's bluff will lead them nowhere.

      --
      If you keep throwing chairs, one day you'll break windows....
    2. Re:Bottom Line by cdrudge · · Score: 4, Interesting

      IBM fought to have the venue changed from Utah's courts to the Federal system and won. This results in two things: Everything takes longer and it's more expensive. While Boise might not need/take his cut of the winnings until after they have won, others are still going to want to be paid. Researchers and experts are going to want paid whether they win or not. Legal/court fees will start to accumulate and they get paid either way. While SCOs pockets can be deep, they are not bottomless.

  3. How hard is this? by pubjames · · Score: 4, Interesting


    One thing I find really annoying about this case is that the Open Source community hasn't been able to point to a bit of code and say, look, there's the problem. Or alternatively, we've looked, and there is no problem. I mean, how hard can that be?

    Let's just remind ourselves of the issue here:

    SCO's lawsuit claims that IBM broke its contract with SCO by allowing parts of SCO's Unix V source code, licensed to IBM for use in AIX, to be used in the rival Linux operating system kernel.

    Ok, I appreciate that SCO's Unix V source code is closed source, and so it is not widely accessible to the OSS community. But someone must have a copy or access to a copy, surely? I'm sure there must be people in the OSS community that actually worked on the original code, isn't there?

    At the very least, can't we just highlight the code that IBM has contributed, and then say, if there is a problem, then it must be in there. As far as I am aware, IBMs additions are for "enterprise ready" systems. If that is the case, then I'm sure they could be taken out without affecting the majority of instances of Linux use.

    If we had a distribution that was free of the IBM code, then doesn't that mean we have a distribution that is legally untouchable by SCO? I know IBMs contributions are probably very valuable and all, but are they worth risking Linux to vagaries of the increasingly irrational legal system?

  4. Re:How it will all end by Bowie+J.+Poag · · Score: 3, Interesting



    I don't even think Mr. Smith even needs to exist. I think SCO is painfully aware that they're on their last legs, AND the fact they're in violation of so many patents that it would be completely ridiculous to even go down that path with IBM.

    IBM files what, 20,000 patents a year? I'd give it a week before IBM had a list of at least a hundred patents SCO sits in violation of.. The only thing stopping them is the reluctance to come off looking like a bully.

    Besides, IBM isn't the boogy-man.. They're actually a fairly friendly company, i'd say. Why would they bother to resort to scare-tactics unless they were legitimately threatened? :)

    --
    Bowie J. Poag

  5. Street rumours? by mccalli · · Score: 4, Interesting
    From the article: "Those guys know what is going to come out in discovery, and you hear a lot of rumours on the street that they are going to buy us out."

    A more blatant attempt to plug the share price could not be found. If IBM were to try and buy, the share price would shoot up. Here's our friend Mr. McBride making that even more explicit to his current stockholders (don't sell) and potential buyers (buy us, we're going to go skywards).

    Besides, I hear no rumours on the street (what a marvellous phrase, unattributable yet pseudo-meaningful...) that IBM are interested. In fact, everything IBM has done so far has shown a complete lack of interest in that outcome.

    Cheers,
    Ian

  6. Bullet-proof by Anthony+Boyd · · Score: 4, Interesting
    McBride radiates confidence, describing SCO's contracts as "bullet-proof."

    Yeah, it sure has IBM's lawyers in a panic.

    /me rolls eyes....

    You know, at first, I thought that McBride was insane -- totally reckless or totally corrupt. But now, I'm starting to think the man is just stupid. I mean, sometimes I talk to people and I disagree with them, but I feel nervous because they might be smart enough to prove me wrong. I don't feel that way with McBride. I read his comments and I just think he's stupid, and the courts will tell him he's stupid, and he just won't get it.

    The last time I felt this way was with the pet-store guy who sued anyone who said anything critical about his terrible service. He was dangerous because he intimidated some people into settling, but mostly he just lost lawsuit after lawsuit. The poor fool probably still thinks he'll somehow turn everything around. McBride is just a reincarnation of that pet store guy.

    1. Re:Bullet-proof by pla · · Score: 3, Interesting

      You know, at first, I thought that McBride was insane -- totally reckless or totally corrupt. But now, I'm starting to think the man is just stupid.

      I've pondered SCO's motivation in this, and come up with two possible answers...

      First, SCO realizes it will soon die, and in a manner similar to some dying humans, it has gone a tad batty. Started giving houses, boats, and cars to 3rd cousins, while suing its brother over a 25-cent bet made a decade ago. All the while trying to reconcile itself with its creator ("Our Shareholders, Who art on Wall Street, hallowed be Thy Capital") by not actually "dying" but rather getting "bought out". A sort of "saving face" in failing miserably as a corporate entity.

      Second, SCO thinks it might win. Since IBM hasn't already bought and dismantled them, we can presume with reasonable confidence that SCO has nothing. So I suspect their "hundred lines of code" will amount to a coincidentally-identical textbook implementation of some common algorithm, and they've bet the farm that they'll get a judge who can't tell the difference. "Why yes, Mr. McBride, it would appear that IBM did release code substantially similar to your... now what did you call it... ''quicksort'' routine. For shame, IBM!".

      I just have difficulty considering both McBride and SCO's entire legal department as either stupid or insane. A few of them, sure, but the whole lot of 'em? Not likely. So, they have either decided to save face in death, or bet it all on a spin of the roulette-wheel-o'-US-justice (Hey, if OJ got off, Bush won in 2000, and the xrispies have gotten to "Roe" of "Roe vs Wade", anything can happen). Nothing else makes any sense.

  7. A more candid interview would have been like... by AtariDatacenter · · Score: 3, Interesting

    [b]Have you considered what would happen if you lost the case?[/b]
    [i]I have nightmares about it. We're talking about the utter destruction of our company. But really, we have no place else to go. This is a balls-to-the-wall strategy. All or nothing. But it isn't like I can't jump ship if things go sour.[/i]

    [b]Do you plan to sell Linux ever again?[/b]
    [i]Don't be silly. That is a low-return activity. Our job will be to shake people down for money. That's a high-return activity.[/i]

    [b]Would you actually like to be bought?[/b]
    [i]God, yes! We'd love to be bought out. But it isn't going to happen whatsoever. Given that, it is best that I said that we don't want to be bought out, because it makes our case look that much stronger.[/i]

  8. Novell by thejackol · · Score: 5, Interesting

    I'm more interested in what The SCO Group had to say about Novell's letter to them. There seems to be not much talk about it. The last I heard Novell was going to challenge SCO on Unix ownership.

  9. Re:Not interested in being acquired? by Stephan+Schulz · · Score: 4, Interesting
    That seems to have an "it's not about sex" ring to it.
    Indeed. If you read through the article, you can see that he is actively threatening to make as much as nuisance of himself as possible:
    • Auditing IBM's customers...I strongly doubt that SCO has a leg to stand on, unless they have a direct contract with them as well.
    • Going over IBM with a fine-toothed comb to see what comes up...right. If they are so sure of themselves, they should push for a fast trial, which they obviously don't.
    I think IBM is actually very smart in not doing anything at all while letting SCO run up legal bills and make more and more unwise threatening statement. Sooner or later, SCO will be deflated, and then the company actually will be totally bust.
    --

    Stephan

  10. What if... by Tellalian · · Score: 3, Interesting

    ...IBM is indeed guilty of what SCO claims? McBride makes a good point in that IBM has made no motions a company would normally make if it thought this case was frivilous. Naturally, I understand /. can be a somewhat jaded forum, but are we that confident in our legal system that we assume the impossibility of injustice?

  11. Could IBM sell out Linux? by velophile · · Score: 5, Interesting
    Don't get me wrong, I'm as happy as anyone of IBM's support of Linux but that doesn't mean that I trust them out right.

    What if IBM is guilty? What if they did misappropriate some proprietary code, on purpose or other wise? Sure the kernel folks will replace it and life will move on, but that will be very damaging to Linux. While we are all throwing stones at SCO maybe we shouldn't completely turn our backs on IBM. Their "support" of Linux may end up doing a lot of harm. Plus they may already be cooking up something they intended to replace AIX and Linux in the next five years or so. Before there was MS there was IBM.

    --
    - vphl
  12. IBM strategy by panurge · · Score: 5, Interesting
    IBM is doing precisely what any 800lb gorilla would do in the circumstances. Very little. Why bother?

    SCO is doing this to try and inflate, and keep inflated, a share price based on an extremely thin balloon. To keep that going, they have to keep shouting. If IBM makes specific replies, then SCO has something to use in the next press release. If they don't, it all has to come from within SCO. The longer it goes on, the greater the chance of SCO coming up with manifest contradictions, allegations that can easily be shown to be untrue in court, actual libel. SCO cannot afford to shut up and cannot afford simply to repeat themselves over and over, as with no new content the press will lose interest.

    My personal interest in this is that 20 years ago we were involved with someone whose public utterances were very like those of Mr. McBride. He came up with so many allegations that our attorney started to believe that we were the liars, on the basis that no-one would make so many claims if they weren't true. But then it came to court...the originals of documents were mysteriously not to hand (faked photocopies). Witnesses were mysteriously unavailable. Foreign Chambers of Commerce had never heard of the companies he claimed we were in collusion with, who also seemed never to have occupied the claimed addresses. The guy fired his own lawyers. And suddenly he lost the case, a judge was telling him that he was considering whether there was a possibility of perjury, and he had huge legal bills to pay for both sides. I seriously believe that this man was so out of his tree that even as he faked documents, he actually believed he was reproducing something that "really" existed in the perfect world he lived in. Never underestimate the power of human self-delusion.

    Not, of course, that I am suggesting for one moment that Mr. McBride is engaging in any improper activities, deluding himself, or seeking to rig the share price of a junk stock. I am sure that he is a totally ethical businessman and the merits of his case will soon become apparent.

    --
    Panurge has posted for the last time. Thanks for the positive moderations.
  13. Re:Not interested in being acquired? by bklock · · Score: 5, Interesting

    "You go back to SCO's brand in the 1990s and it was Unix on Intel. SCO was primed to seize the multibillion-dollar server market of Unix on Intel that hit in the early 2000s that has in fact shifted over to Red Hat."

    He's falling for a logical fallacy here. 'Unix on Intel' caught on largely because of Linux and its liberal licensing. No proprietary Unix vendor ever made substantial in roads in this area, and I doubt any would have. When ever asked about the benefits of Unix-on-Intel, the answers people give for it are the general openness of the platform and it being less expensive than a proprietary solution. This is not compatable with a license-fee-extorion scheme.

    Its no different than saying "We just sold a million foobars for a dollar each. If only we had charged a million dollars each, we'd be gazillion-ares!

  14. Motion to Dismiss forthcoming? by cyphergirl · · Score: 3, Interesting

    This from IBM's ammended response to SCO's complaint:

    "Nineth Defense

    Caldera's claims are improperly venued in this district.

    Wherefore, defendant IBM demands judegement dismissing plaintiff's complaint and respectfully requests that the Court award IBM reasonable attorneys' fees and expenses and the costs and disbursements of defending this action along with such other and further relief as the Court deems just and proper."

    --
    --Insert catchy .sig line here--
  15. Re:Not interested in being acquired? by Arker · · Score: 5, Interesting

    I don't have much direct experience with SCO, but perhaps a couple of interesting anecdotes at least.

    My first brush with it was the same time as my introduction to Linux, early 90sish I don't remember the year right off. A guy I knew, a friend's step-dad, was an old unix guy and after getting sacked from Honeywell where he had worked for decades he was trying to make a business on his own around Unix on Intel. He had a SCO dealership for a couple of months. He was constantly bitching about it, poor performance, crazy to set up, crashing for no reason, damnable intrusive copy protection system built in, and the price was pretty high too. We were experimenting with slackware at the time and showed it to him... a month later he threw SCO out the window and never went back.

    Much later, only a couple of years ago, I worked a bit for a place that used SCO to drive a couple hundred dumb terminals. That was just a temp job while I found real work, and I wasn't in on the Admin side of it, but I know that the guys that were started cursing whenever you mentioned SCO. They were working on moving the system to Redhat instead, but of course it was proprietary no-source stuff, and while they had it running it was still freezing and doing odd things occasionally and they hadn't figured out why yet, so it was just in testing still. They were planning to junk SCO as soon as they could get it working stable too, and gritted their teeth and screaming a lot about exactly the same things my friends stepdad had been bitching about nearly 10 years earlier it seemed to me.

    --
    =-=-=-=-=-=-=-=-=-=-=-=-=-=-
    Friends don't let friends enable ecmascript.
  16. Re:McBride is doing what a CEO is supposed to do by jedidiah · · Score: 4, Interesting

    Under no reasonable interpretation of the duties of a CEO can McBride be said to be looking out for the intrests of his company. Even if everything that SCO is claiming is true, it doesn't really matter much. Old SCO lost market to Solaris x86 and Linux because they chose to take an old school approach to breaking into new markets.

    A cursory glance at the history of PC computing will quite quickly demonstrate the folly of this.

    So now they are left antagonizing the entire population of Unix evangelists for the sake of very weak claims of damages.

    Furthermore, Linux IMPROVED the value of SVRx if anything. Before Linux and it's hype came along, the entire Unix market looked as if it would be consumed by NT.

    Nevermind the fact that all of the big licensing deals possible have ARLREADY BEEN MADE. What money could they possibly make off of SVRx now anyways. ...and as far as their own implementations go: Sun devalues SCO's potential business far more effectively than Linux.

    --
    A Pirate and a Puritan look the same on a balance sheet.