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More Criticism of SCO's Claims To UNIX

inc_x writes "GROKLAW has a compelling analysis that shows that SCO's claims that it owns the UNIX operating system are not very truthful. The Open Group confirms this position: "Statements that SCO "owns the UNIX operating system" or has "licensed UNIX to XYZ", are clearly inaccurate and misleading." It seems that SCO finds it increasingly difficult to distinguish facts from fiction. Last week SCO claimed 'This IP battle is only one part of SCO's business and is an add-on component. The core of SCO's business is profitable,' not bothered by the fact that they had claimed the opposite in their SEC filing: 'If we do not receive SCOsource licensing revenue in future quarters and our revenue from the sale of our operating system platform products and services continues to decline, we will need to further reduce operating expenses in order to maintain profitability or generate positive cash flow.'"

82 of 400 comments (clear)

  1. Make UNIX Open SCOurce! by Lieutenant_Dan · · Score: 5, Funny

    I think the Open SCOurce developer community would greatly benefit of having full access to the code for the greatly-acclaimed UNIX operating system. It would enable academics all over the world (especially in cold Scandinavian countries) to release their low-cost operating systems that are similar to UNIX. Some kernel components such as memory management could be enhanced instead of using 30-year old algorithms that may be misinterpreted by certain corporations as being propriatery.

    We must encourage the grass-roots developers to add to the global intellectual property by releasing great variants of UNIX-based operating systems so that we can topple the dichotomy that Microsoft presents to computer science progress.

    Only when we liberate the high memory block in the Expanded memory pool can we launch the necessary TSRs for MSCDEX support.

    Which is nice.

    --
    Wearing pants should always be optional.
    1. Re:Make UNIX Open SCOurce! by DickBreath · · Score: 4, Funny
      Make UNIX open source?

      Wrong answer McFly!

      Haven't you seen SCO's new television commercials to be aired soon?

      Well, the commercial has this kid in a large white room....

      Well, you'll just have to wait and see it. But the commercial is awesome. It ends with the words...
      The Future Is Closed

      and then fades to the word...

      SCO
      --

      I'll see your senator, and I'll raise you two judges.
    2. Re:Make UNIX Open SCOurce! by Bingo+Foo · · Score: 2, Informative
      Everyone (but sun) killing off their own unixen for Linux.

      Really?

      --
      taken! (by Davidleeroth) Thanks Bingo Foo!
    3. Re:Make UNIX Open SCOurce! by dmaxwell · · Score: 4, Insightful

      Of course this could end up being bad, since SCO is owner of the (important note: singular not plural) operating system Linux.

      SCO most certainly does not own Linux. At most they may have ownership of inappropriately included code. The vast majority of the Linux codebase is owned by individual and corporate contributes who have and had full rights to do so. Those copyright holders have every right to nail them for infringment. This is why they're spewing this "GPL is public domain." nonsense. They are even more guilty of copyright infringment than anyone who contributed inappropriate code to Linux. They're practicing "a good offense is better than a good defense".

      Sooner or later, SCO will have to reveal their so-called evidence. The provenance of the code will be established and anything that doesn't belong will be removed. At that point they can go after the hapless idiots who contributed the 80 lines or so but that is it.

      They can be said to own the Caldera variant but it was always a niche distro at best.

      While we're on the subject, Linus Torvalds owns the Linux trademark. They won't be claiming that for their own either.

    4. Re:Make UNIX Open SCOurce! by AJWM · · Score: 2, Funny

      It seems to me that all non-Microsoft operating systems are converging on Unix.

      Well, as Henry Spencer put it: "those who fail to understand Unix are destined to reimplement it -- poorly."

      Which probably also explains why Microsoft is doing such a lousy job of it.

      --
      -- Alastair
  2. Re:ATTN: Editors by Dreadlord · · Score: 3, Informative

    it's already there, just select not to see "Caldera" stories from your preferences page, plain and simple.

    --
    The IT section color scheme sucks.
  3. SCO in invoice fight - With SCO Australia by Anonymous Coward · · Score: 5, Informative

    Since at least August, SCO have been floating the idea of sending invoices to Linux users. It's even been reported, seemingly incorrectly, back in August, that SCO was beginning to send invoices. The invoice story has been taken up with a vengence in the last few days, for example, here, here and here.

    SCO Australia says the invoicing plan doesn't "ring true" and contradicts very recent strategy discussions. Unfortunately, SCO USA's Blake Stowell, doesn't seem to have yet responded to SCO Australia's request for clarification. SCO Australia also says that they're unsure about the question of invoices being sent in the US even though there are reports on the web [examples: here, here and here] about just such a thing being planned.

  4. Who buys the stocks anyways? by sokk · · Score: 3, Insightful

    A little offtopic:
    Who buys the stocks that SCO "dump"? Anyone in their right mind would back off from this company. I for one, wouldn't have bought a sinking ship.

    1. Re:Who buys the stocks anyways? by FreeLinux · · Score: 5, Insightful

      On the contrary. For short term investors, SCO has been a good buy since they first filed the suit. Look at this SCO stock chart.

      Now, I feel that this won't last for too long but, it will likely last for as long as they can keep their name in the news. Once it finally goes to court, probably in 2004, it will all be over. But, for the next three to six months, SCOX is still a good buy.

    2. Re:Who buys the stocks anyways? by Dunark · · Score: 5, Interesting

      Who buys the stocks that SCO "dump"?

      Read the Friday August 29th page of Groklaw. There's a company called Integral Capital Management V that's bought enough recently that they had to file a 13G with the SEC. Curiously, shortly after they bought a big interest in Drugstore.com no long ago, a person by the name of Melinda French Gates was appointed to a seat on that company's board or directors. Hmmmm....

    3. Re:Who buys the stocks anyways? by Crispy+Critters · · Score: 4, Insightful
      'Who buys the stocks that SCO "dump"?'

      Not many sensible investors looking for long-term profit would invest in SCO. But they aren't the only ones who buy stock. As an example, say some company or person wanted to reward the SCO execs for their litigious nonsense. This company could do so legally and largely unnoticeably by buying SCO stock. With the execs dumping stock which is really worthless, money is just going from the purchasers to the officers' pockets.

      After all, SCO is being sued by IBM for patent infringement, and they will almost certainly lose. They are going down. It is merely a question of when.

    4. Re:Who buys the stocks anyways? by dnoyeb · · Score: 4, Interesting

      Most on the yahoo forum have come to believe SCO has put someone up to buying stock to keep the price high. This allows them to continue to cut deals by offering the option to buy SCOX stock at a highly reduced price (stock options) in exchange for business favors (i.e. SUNW).

      Besides >45% of the stock is held by insiders, and probably another 20%-30% is held by funds. its a VERY illiquid stock with small public holdings. Practically you could call it a private company.

      And for those that think SCOX stock is or was a good buy because the price is so high need look no further than the liquidity of the stock. Todays price may be $16 but sell 100,000 shares on the market and the price will drop instantly $2. So if your tossing around 100-10,000 shares, you can probably make a little change. any more than that, and you wouldn't be able to effectively cash out reliably.

    5. Re:Who buys the stocks anyways? by killmenow · · Score: 2
      Who buys the stocks that SCO "dump"?
      As someone smarter than me said: "Anyone who believes there's one more fool beyond them who'll buy."
    6. Re:Who buys the stocks anyways? by DickBreath · · Score: 3, Interesting

      Not many sensible investors looking for long-term profit would invest in SCO. But they aren't the only ones who buy stock. As an example, say some company or person wanted to reward the SCO execs for their litigious nonsense. This company could do so legally and largely unnoticeably by buying SCO stock. With the execs dumping stock which is really worthless, money is just going from the purchasers to the officers' pockets.

      If, hypothetically, there were some large American monopolistic company, and let's further suppose that such a hypothetical company were willing to buy SCO stock at outrageously high prices to reward the investors, then I would observe two things. (1) they cannot buy more than 5% of SCO before having to file with the SEC as to their intentions. (2) they would lose the money they spent on the stock when it crashes.

      If there were such a hypothetical company doing such a thing, then they would have to file with the SEC as to their intentions. I can just see the filing: Our intent is to make the SCO principals rich in exchange for restraining trade in the Linux market.

      As for item 2, there are some American companies with enough money in the bank that they wouldn't even notice some few millions of dollars.

      Maybe multiple companies in collusion could each buy under 5 % of the stock? Or maybe the SCO principals don't own more than 5 %? But then the other 95% holders would be yelling Sell! Sell! Sell! And someone must be buying at those prices, because that's what determines the prices.

      (being that this is slashdot, I should have said "loose the money" instead of "lose the money".)

      --

      I'll see your senator, and I'll raise you two judges.
    7. Re:Who buys the stocks anyways? by DickBreath · · Score: 2, Insightful

      Once it finally goes to court, probably in 2004,

      I was under the impression that it was April 2005. So we should have at least another year of this commedy routine.

      One +1 Insightful observation I'll make: Slashdot SHOULD CREATE AN SCO SECTION. This nonsense is going to go on for long enough that those of us who wait on the edge of our seats constantly checking slashdot for each new commedic bit of PR from SCO could check a special subsection like sco.slashdot.org.


      Why, oh why, oh why hasn't SCO gotten the memo about what to say. They should be saying to the press: We do not comment on pending litigation. Instead SCO is trying to get as much PR as it can get. Why has IBM been so strangely silent?

      --

      I'll see your senator, and I'll raise you two judges.
    8. Re:Who buys the stocks anyways? by Discopete · · Score: 3, Interesting

      If you stop and check the listing of the Executives and the board of directors for Drugstore.com, you'll also see that the Chairman of the Board, Peter Neupert and at least one other board member worked for Microsoft before being hired on at Drugstore.com.
      Going on that, you'd think that a man with an MBA from Dartmouth would have at least some kind of clue of what makes a good director. Hell, Stanger, the other director with MS ties got his MBA from Berkeley.

      Aside from the fact that she happens to be married to the man most people on slashdot liken to the anti-christ, Ms. Gates has got cred of her own.

      BA from Duke and an MBA from Duke, plus she sits on the board of Trustees at Duke.

      Just because she married Bill doesn't immediately make this a freakin' conspiracy.

    9. Re:Who buys the stocks anyways? by mec · · Score: 2, Interesting

      Just because she married Bill doesn't immediately make this a freakin' conspiracy.

      I agree. The world of high-tech is small and I'm willing to accept this as coincidence.

      However, the fact that Microsoft wrote a check to SCO for $6 million does make this look like a conspiracy.

      And the fact that Sun wrote a check to SCO, and Sun received an equity position in SCO, and Sun now loudly proclaims their products as legally compliant with SCO due to their 10-year old license -- but Sun does NOT talk about the license + stock warrant agreement they signed wit SCO in February 2003 -- looks even more like a conspiracy.

    10. Re:Who buys the stocks anyways? by fucksl4shd0t · · Score: 3, Funny

      Melinda French Gates

      Dontcha mean Melinda Freedom Gates?

      --
      Like what I said? You might like my music
    11. Re:Who buys the stocks anyways? by Daniel+Phillips · · Score: 2, Funny

      BA from Duke and an MBA from Duke, plus she sits on the board of Trustees at Duke.

      Just because she married Bill doesn't immediately make this a freakin' conspiracy.


      Ha ha ha. Was she invited onto Duke's board of Trustees before or after marrying billg?

      --
      Have you got your LWN subscription yet?
  5. Potential Revenue Source by weston · · Score: 4, Funny

    They could become an entertainment company: a source of drama and amusement for the tech industry. There's a big gapping hole in the market for tech-industry oriented soap operas.

    Start by offering low-bandwidth real media clips of goings on, move up to high-bandwidth, premium, see-it-before-anyone-else scubscriptions. Maybe for extra cash, even be able to influence the plot or participate in being threatened interactively!

    1. Re:Potential Revenue Source by Feztaa · · Score: 4, Funny

      SCO is a lot like a mime: they're annoying, unfunny, and ultimately inconsequential.

      Unlike a mime, however, SCO just won't shut the fuck up.

  6. Reducing operating expenses by Zocalo · · Score: 4, Insightful
    we will need to further reduce operating expenses in order to maintain profitability or generate positive cash flow.

    So, if I read this right, if no one pays any license extortion money to SCO then they will have to cut costs to remain in the black. One might suggest they start by dismissing their over-priced lawyers, dismissing their frivolous lawsuits, and trying to kick the collective crack habit they seem to have developed.

    Then again, they are well on their way to becoming the poster child to show that taking drugs leads to criminal behaviour. I wonder if they could claim royalties on all the eventual "Don't do drugs or you'll turn into SCO" posters in schools and police stations... ;)

    --
    UNIX? They're not even circumcised! Savages!
    1. Re:Reducing operating expenses by Error27 · · Score: 3, Insightful

      It's a testament to SCO's PR that people think they have sued anyone besides IBM.

      They've made all kinds of random threats and press releases but only for the purpose of driving up the stock price. They don't intend to actually go to court.

      Heck, they don't intend to even win their one lawsuit against IBM.

    2. Re:Reducing operating expenses by Courageous · · Score: 3, Insightful

      You may very well be right. However, if IBM is able to prove this, their countersuit will be a real humdinger. The Courts look darkly upon those who file to intimidate.

      C//

  7. New exciting business investment! by Billly+Gates · · Score: 4, Funny

    Dear Sir/Madam:

    I am Mr. Darl McBride currently serving as the president and chief executive officer of the SCO group, formerly known as caldera systems international, in Lindon, Utah, united states of America. I know this letter might surprise your because we have had no previous communications or business dealings before now. My associates have recently made claim to computer software worth an estimated $1 billion U.S. dollars.

    I am writing to you in confidence because we urgently require your assistance to obtain these funds. In the early 1970s the American telephone and telegraph corporation developed at great expense the computer operating system software known as Unix. Unfortunately the laws of my country prohibited them from selling these softwares and so their valuable source codes remained privately held. Under a special arrangement some programmers from the California university of Berkeley did add more codes to this operating system, increasing its value, but not in any way to dilute or disparage our full and rightful ownership of these codes, despite any agreement between American telephone and telegraph and the California university of Berkeley, which agreement we deny and disavow. In the year 1984 a change of regime in my country allowed the American telephone and telegraph corporation to make profits from these softwares. In the year 1990 ownership of these softwares was transferred to the corporation Unix system laboratories. In the year 1993 this corporation was sold to the corporation Novell. In the year 1994 some employees of Novell formed the corporation caldera systems international, which began to distribute an upstart operating system known as Linux. In the year 1995 Novell sold the Unix software codes to SCO. In the year 2001 occurred a separation of SCO, and the SCO brand name and Unix codes were acquired by the caldera systems international, and in the following year the caldera systems international was renamed SCO group, of which i currently serve as chief executive officer. My associates and I of the SCO group are therefore the full and rightful owners of the operating system softwares known as Unix. Our engineers have discovered that no fewer than seventy (70) lines of our valuable and proprietary source codes have appeared in the upstart operating system Linux. As you can plainly see, this gives us a claim on the millions of lines of valuable software codes which comprise this Linux and which has been sold at great profit to very many business enterprises. Our legal experts have advised us that our contribution to these codes is worth an estimated one (1) billion u.s. dollars. Unfortunately we are having difficulty extracting our funds from these computer softwares. To this effect i have been given the mandate by my colleagues to contact you and ask for your assistance. We are prepared to sell you a share in this enterprise, which will soon be very profitable, that will grant you the rights to use these valuable softwares in your business enterprise. Unfortunately we are not able at this time to set a price on these rights. Therefore it is our respectful suggestion, that you may be immediately a party to this enterprise, before others accept these lucrative terms, that you send us the number of a banking account where we can withdraw funds of a suitable amount to guarantee your participation in this enterprise. As an alternative you may send us the number and expiration date of your major credit card, or you may send to us a signed check from your banking account payable to "SCO group" and with the amount left blank for us to conveniently supply. Kindly treat this request as very important and strictly confidential. I honestly assure you that this transaction is 100% legal and risk-free. SCO CEO McBride

  8. You know what I would pay SCO for? by grasshoppa · · Score: 5, Funny

    If SCO setup an entertainment program, I would be more than willing to chip in a few bucks.

    I mean, you just can't make this stuff up.

    Well, unless you are SCO, I mean.

    --
    Mod me down with all of your hatred and your journey towards the dark side will be complete!
    1. Re:You know what I would pay SCO for? by ewhac · · Score: 2, Redundant

      I mean, you just can't make this stuff up.

      Evidently, as SCO have amply demonstrated, you can.

      Schwab

  9. The karma gods will kill me for this one. by Mr.+Darl+McBride · · Score: 5, Funny
    "It seems that SCO finds it increasingly difficult to distinguish facts from fiction"

    Darl here, and I'm afraid this is one shortcoming we've got to own up to. The explanation for our warped perception is pretty straightforward, however -- You see, we here at SCO have started reading Slashdot.

  10. SEC filing by LinuxInDallas · · Score: 4, Informative

    Yes, that SEC filing was pretty interesting. Here is a quote:

    "Due to a lack of historical experience and the uncertainties related to SCOsource licensing revenue, we are unable to estimate the amount and timing of future licensing revenue, if any. If we do receive revenue from this source, it may be sporadic and fluctuate from quarter to quarter. SCOsource licensing revenue is unlikely to produce stable, predictable revenue for the foreseeable future. "

  11. SCO BLAST FROM THE PAST !!! by Anonymous Coward · · Score: 4, Interesting

    Cash incentive for open source community from SCO? (Wednesday August 26, 1998 @07:45PM)

  12. Re:MOD Parent Up! by Esion+Modnar · · Score: 4, Funny
    This is like beating a tied-up retarded man. Fun for a while, but after a while you start feeling sorry for him.

    SCO needs a new strategy. Claim that Linux contains child pornography, just like the recent tack of the RIAA WRT P2P. (Wow, sorry for the acronyms...)

    They can also claim that it will curve your spine, give you hairy palms, and that its powered by the slaughter of cute puppies and/or baby harp seals.

    And also mention that the GPL, played backwards, sounds a lot like Satan. (What exactly does Satan sound like?)

    And of course, as always, provide absolutely no proof...

    --

    They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
  13. SCO news a MUST read (or do you really care?) by Anonymous Coward · · Score: 5, Insightful

    Look, SCO news is a must read. Why should you care? Simple: even if you are burned out on SCO you need to know enough to be able to defend against it.

    K, so you just don't care about Linux. Do you care about Open Source in general? It's not just a Linux problem, it's an open source problem. Sure, Linux is the blame stick here, but Linux is just the tip of the iceberg. Linux is just a proxy for the whole Open Source way of doing things. Where do you think the next 'lines of code' will be found? Who owns the copyrights for main()? Old Bell labs? K&R? SCO?

    Yeah, you think that's silly question.

    What this whole SCO thing is about is modern day robber barons. CEO-theives who think they can create a high level of fear and uncertainty from suits; enough that they will listen, enough that they will wonder, enough that they will pay.

    Unfortunately, this is not the scary thing; the scary thing, sad though it sounds, is that they are doing this with legal means. We can bitch and moan about how wrong they are, but you don't see them in 'cuffs do you? This is the exact same sort of tactic (RIAA, Microsoft, and a cast of thousands) that is used to circumvent freedoms of ideas, ideals, and individuality.

    Care or not care, but understand what you are doing, understand the implications, and understand that you or someone/something you care about may be next.

  14. A good, ongoing analysis of the conflict by Llywelyn · · Score: 5, Informative

    Can be found here:

    Lamlaw.com

    The guy keeps an ongoing watch for the news articles and makes legal commentary wrt what's happening. He tends to be very insightful and makes good points.

    --
    Integrate Keynote and LaTeX
  15. Re:In tomorrow's /. news... by GammaTau · · Score: 2, Funny

    A SCO article that either 1) explains SCO is wrong or 2) tells what stupid thing SCO has done now.

    Hey now, let's not be so cynical there. This Slashdot article contains some very insightful editorial commentary, such as "It seems that SCO finds it increasingly difficult to distinguish facts from fiction."

  16. Article's cool, but... by Negative+Response · · Score: 2, Informative

    is it useful? See, the lawsuit is about a contract breach, i.e. whether it's legal for IBM (and possibly SGI?) to put UNIX Sys V code in Linux, not the name. It would be more useful to discuss the facts such as: the code was written by Sequent - now part of IBM; UNIX Sys V source came with a retarded license; etc. Exactly who owns the name "UNIX" is completely irrelevant.

    1. Re:Article's cool, but... by Meowing · · Score: 4, Informative

      GROKLAW articles probably won't make too much sense unless you follow the site over time. Its whole purpose is to dissect the details, to sift the reality from the PR. In this case, it all goes back to the complaint SCO filed against IBM. Much of SCO's argument hinges on the assumption that the reader will buy the idea that "UNIX" as a generic term is the same thing as "UNIX" the SCO-owned code base, hence the analysis that attempts to squash that notion from any conceivable angle.

  17. Stop the presses, a business is lying! by tjstork · · Score: 4, Insightful


    While we are all in a foment over SCO lying about its extent of owning everything, should we even really be surprised?

    Can you name one corporation that actually seems like it ALWAYS tells the truth? By truth I mean, through its communications never seeks to misrepresent the reality of a situation.

    There are not any out there.

    --
    This is my sig.
  18. Don't read the stories then... by Pharmboy · · Score: 5, Insightful

    Seems to be the usual overload of people bitching about too many SCO stories. Here is a simple answer:

    Don't read them. Some of us want a daily SCO update. It's ok that you don't want daily stories, but you can read the other stories instead of filling up the place with complains.

    It's just unnecessary.

    --
    Tequila: It's not just for breakfast anymore!
    1. Re:Don't read the stories then... by Mr.+Darl+McBride · · Score: 5, Insightful
      Kudos to the parent post. In all seriousness, this is a very personal issue for many of us. And even for the folks who don't believe the outcome has the potential to steer free software in a new direction, it's still every bit as engaging as sports are for your average guy: every tiny change and detail is fascinating. Many of us are learning about how the legal system really works for the first time by digging into these updates, many others are coming to understand the protections really offered by the GPL, and for once the geeks have something really substantive to chat about around the water cooler.

      I think the Slash editors have done a great job of spacing these stories so that they aren't even beginning to overwhelm the site, and I hope they keep it up through to the case's conclusion. And if the ongoing high comment count for each SCO story are any indication, I'm not the only one who thinks this way.

      Please, Slashdot, keep up the good work. Through everybody's efforts, we can win this, and UnixWare will once more come out on top.

      -- Darl

    2. Re:Don't read the stories then... by Pharmboy · · Score: 4, Interesting

      I had commented previously that it is like a cheap soap opera, but a good, cheap soap opera for nerds. It is a compelling story, with good guys and bad guys, and all kinds of plot twists, unusual characters, and viewpoints.

      Its not really a simple "SCO v IBM" situation, but a tangled legal mess that includes Open Group, SGI, Sun, OSX, BSD, MS, OSS, the GPL, RMS, and lots of other acronyms. You can't write fiction this good.

      I would agree with your evaluation of /. editors on the pacing as well. Its probably a good compromise to keep all parties in balance. Can't wait 'til tomorrow's episode ;)

      --
      Tequila: It's not just for breakfast anymore!
  19. It's not that easy by Lieutenant_Dan · · Score: 5, Funny

    When you see roadkill on the road, don't you feel tempted to poke it with a pointy stick? Well, it's the same with the SCO stories. It disgusts us, but we cannot help ourselves from jabbering about it.

    --
    Wearing pants should always be optional.
  20. Re:Oh for chrissake by red+floyd · · Score: 4, Funny

    You know that little thing you move with your right hand? The clicky thing? You click with it and stories show up on your screen?

    Well, DON'T CLICK IT ON SCO STORIES IF YOU DON'T WANT TO READ THEM!

    Thank you.

    --
    The only reason we have the rights we have is that people just like us died to gain those rights. -- Cheerio Boy
  21. Acronym by soliaus · · Score: 2, Funny
    This IP battle is only one part of SCO's business and is an add-on component.

    Kind of like how SCO execs claim they have taken advantage of the penis upgrade, but wont let anyone see the source unless they sign an NDA.

    --
    Speaking at Defcon 12 - Credit Card Networks Revisted: Pen
  22. You misunderstand the article by Anonymous Coward · · Score: 5, Insightful

    Mod parent down, and try reading the article.

    The point of the article is that SCO asserts in their media appearances, press releases, and most importantly, their court filings, that (1) UNIX is a single operating system, (2) all based on the AT&T code, (3) SCO own the AT&T code

    The artice demonstrates, that (1) and (2) are false, and SCO must know that.

    (1) Is demonstrated to be false, by the very definition of UNIX,

    (2) Is demonstrated to be false, by the existence of S/390 UNIX, and by the fact that Windows NT could become UNIX in future, etc.

    The fact that SCO must know that is demonstrated by SCO's history with trademark licensing and attribution, UNIX certification of SCO products, etc.

  23. Submitter needs to learn to read by 110010001000 · · Score: 2, Informative

    "The core of SCO's business is profitable,' not bothered by the fact that they had claimed the opposite in their SEC filing: 'If we do not receive SCOsource licensing revenue in future quarters and our revenue from the sale of our operating system platform products and services continues to decline, we will need to further reduce operating expenses in order to maintain profitability or generate positive cash flow.'"

    This is not an incorrect statement by SCO. They are saying IF they do not receive SCOsource licensing revenue in FUTURE (not now or past) quarters and their revenue CONTINUES TO DECLINE [in the future, not now or past quarters] then they will be unprofitable. There is nothing in that statement that says that the core business is unprofitable now or previously.

    See kids? Thats why education (university) and reading comprehension is important in life.

    1. Re:Submitter needs to learn to read by inc_x · · Score: 4, Informative

      Nice spin, but in the 10-Q filing you can read that without the 8.25 million SCOsource revenue (kindly donated by SUN and Microsoft) SCO would not have been profittable that quarter but would have made a 3.68 million loss. This has been the first quarter they have been profittable and the only reason for that profitability is the SUN/Microsoft sponsoring. You can also read that Microsoft has promised them another 5 million to be spread over the next three quarters.

  24. It doesn't matter by Shamashmuddamiq · · Score: 3, Interesting
    ...if SCO's claims are truthful. If they get a jury trial, Linux is doomed. All they have to do is show two similar blocks of code (doesn't matter where they come from), say one side is Linux and the other side is SCO's, and the jury's 2nd-grade ethics will take over (STEALING IS BAD!). We all saw how it went the last time they pulled that stunt, and most of those people should have known better!

    Sorry if I seem cynical, but democracy only works if more than half the population makes intelligent decisions.

    --
    ...just my 2 gil.
    1. Re:It doesn't matter by Empiric · · Score: 2, Interesting

      I'm also concerned about the possibility of a misinformed or apathetic jury.

      Which leads me to think, could the Open Source community go on the offensive on this issue? Is there anyone out there familiar enough with the relevant compilers to determine if there is Linux code inappropriately incorporated into software and products claimed to be of SCO origin/acquisition? I know this possibility has been conjectured, but proof would be outstanding. I know decompiling isn't as straightforward as disassembly, but the PR reward could be huge.

      (Or any other Unix-ey OS for that matter, though Linux is SCO's target-of-the-moment...)

      --
      ~ Whence do you come, slayer of men, or where are you going, conqueror of space?
    2. Re:It doesn't matter by wkjel · · Score: 3, Insightful

      Oh, I don't think it will be that simple. The members of any jury will more than likely be forced to learn far more about backup schedules, verifcation of tapes, source-code control systems and the like than they would ever want to know about. Do really think IBM's lawyers will let SCO get away with the simple "here's two block of similar code - they must have stolen it" trick without raising a single question in cross-examination? SCO will have to provide excruciatingly detailed histories for every line of code they show (just for starters).

    3. Re:It doesn't matter by fava · · Score: 5, Insightful

      SCO's case against IBM has nothing to do with copyright. SCO is intentionaly trying to confuse 2 different issues
      1) a contract dispute with IBM
      2) alledged copying of UNIX code into Linux
      When SCO refers a million lines of code they are talking about code that is copyright by IBM and other unix licencees that SCO beleives should not have been added to Linux. SCO does NOT own the copyright to that code, and has admitted it publically. Even in IBM is found guilty of innappropriatly copying the code into Linux, SCO still will not own the copyright to that code.

      By repeating there allegation regarding a million lines of code they are trying to strengthen thier argument for users to pay for licences. Nobody outside of SCO knows how much code they are claiming is copied from unix into linux.

      So it is unlikley that the copied code issue will even be put before the jury.

    4. Re:It doesn't matter by swillden · · Score: 2, Interesting

      If the trial is in a Utah court, SCO will probably win the first round at least. Not even IBM's hoard of lawyers can beat an 8000-pound gorilla on their home turf

      It can't imagine how it would be held anywhere other than Utah, but unless SCO can come up with something more substantial than they've revealed to date, they're going to lose. Mormons tend, on average, to be better-educated than most Americans, and this is a trial where the ability of the jurors to understand complex issues will likely be important. However, I think that if IBM's attorneys do their job, even a dozen babbling idiots will see that SCO is full of crap.

      Unfortunately the political climate in several Western US states that have large Mormon populations (Utah, Arizona, Idaho) tends to favor the LDS church and its leaders - they tend to get what they want unless and until they are publicly embarrassed/exposed.

      You seem to be assuming that SCO has the backing of the Church, or has a tight association with its leaders; and I've seen no evidence whatsoever to support either of those claims. What I see is a bunch of amoral executives who just happen to also be Mormons who live in Utah.

      If religion did come into this (and I don't think it will), I think it would work against SCO big time. Why? Because the trial will certainly expose the jurors to all of SCO's myriad lies and self contradictions, and the notion that this is an elaborate pump-n-dump scheme will have to come up as well. If the jurors are LDS (keep in mind that if they're drawn from Salt Lake City, only about 30% of the population is LDS, and less than that are "active") and if they find out that McBride and the other SCO execs are LDS, they'll be even more intolerant of all of these shenanigans. Mormons are generally prepared to grant non-Mormons a fair amount of moral "latitude", but tend to get very angry in the face of blatant hypocrisy committed by one of their own.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    5. Re:It doesn't matter by mec · · Score: 4, Insightful

      Actually, IBM already won a round.

      SCO sued IBM in a Utah state court, carefully writing their lawsuit so that there were no federal issues in it. SCO can do this because both SCO and IBM are both corporate residents of the same state, Delaware.

      Or so SCO's lawyers said in their lawsuit. IBM slapped the fuck out of them by pointing out that IBM is incorporated in New York, and here is a certified copy of IBM's Certificate of Incorporation, and here's a bunch of legal precedents which say that a court has to recognize the actual state that a defendant is really in, not the state that the clot-headed plaintiff incorrectly writes in the complaint. Hence, because IBM and SCO are corporate residents of different states, a lawsuit between them for an amount greater than $75,000 must be heard in federal court, not in state court.

      It was really a boneheaded move on the part of SCO's lawyers. Boies spent 10 years of his career working for IBM and he doesn't know what state it's incorporated in?! And none of their high-priced paralegals can read the first page of a 10-Q or a 10-K, the part that says:

      INTERNATIONAL BUSINESS MACHINES CORPORATION
      (Exact name of registrant as specified in its charter)

      NEW YORK
      (State of incorporation)

      In fact it's such a stupid move that it makes me wonder about conspiracy theories, like SCO's lawyers filed in the wrong court on purpose in order to add additional delay.

      As far as the federal judge assigned to the case, read the excellent Groklaw article on Judge Kimball.

    6. Re:It doesn't matter by fucksl4shd0t · · Score: 2, Funny

      If religion did come into this (and I don't think it will), I think it would work against SCO big time. Why? Because the trial will certainly expose the jurors to all of SCO's myriad lies and self contradictions, and the notion that this is an elaborate pump-n-dump scheme will have to come up as well. If the jurors are LDS (keep in mind that if they're drawn from Salt Lake City, only about 30% of the population is LDS, and less than that are "active") and if they find out that McBride and the other SCO execs are LDS, they'll be even more intolerant of all of these shenanigans. Mormons are generally prepared to grant non-Mormons a fair amount of moral "latitude", but tend to get very angry in the face of blatant hypocrisy committed by one of their own.

      Admiral Kirk: I think he did a little too much LDS.

      --
      Like what I said? You might like my music
    7. Re:It doesn't matter by Anonymous Coward · · Score: 3, Informative

      Huh? The copied code issue *IS* the issue. Absolutely it will be put before the jury.

      Get it straight. The lawsuit is a contract dispute. Basically whether IBM is allowed to contribute IBM derived code to the Linux kernel, not Unix System V code.

      The SCO PR engine is trying to convince people that Unix System V code has been contributed to the Linux kernel and therefore SCO owns Linux.

      Your confusion is understandable, SCO is trying their best to obfuscate the two issues.

    8. Re:It doesn't matter by swillden · · Score: 2, Informative

      Angel Investors is, in turn, very closedly associated with LDS.

      Closely associated in what way?

      Even if the Church itself is invested in Angel Investors (which is unlikely), it's very unlikely that the Church leadership has any knowledge whatsoever of this whole fiasco. And there certainly is no obvious reason why the Church would be interested in killing Linux.

      Heck, the Church *uses* Linux. Not widely; until a couple of years ago their I/T department was a totally Microsoft shop, but they've become unhappy with sending all that cash to Redmond, when it could obviously be used for much worthier purposes. A couple of years back, however, they decided to try a different approach, hiring a new team of experienced developers for a new project and allowing them to pick their own tools. They picked Linux as an OS, use open source tools where applicable and write their own stuff in Java, using XP methodology (including pair programming).

      Like any organization that is extremely cost-sensitive (and churches are far more cost-sensitive than even the most tightly-run business), the LDS church sees significant value in a free as in... er... punch and cookies operating system. They have traditionally employed very cheap I/T staff, so they aren't well-equipped to see the value of software that is free as in freedom, but eventually that'll become obvious as well, I'm sure.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  25. Re:Oh for chrissake by Anonymous Coward · · Score: 3, Insightful

    OK, not to rain on your parade, but while most the tech crowd is cheesed at SCO, are you really sure that "most of the industry is not impressed"?

    In the last few days at work, from what I've heard from visiting execs -- and from some in my department (it's a big department, trust me) -- it became clear to me that some are buying Chris & Darl's party line. In fact, I'm starting to get the impression that a small majority of the decision makers/non-techies in North America is woefully (sp?) ignorant about the whole shebang and has gotten whatever "information" it "knows" about the SCO-IBM duel from sources like CNN and what they over-heard on the bus or on the plane.

    Or from places like Gartner or EDS -- a company that has apparently wedged into whatever contracts they sign with their clients a clause that tells the clients they are their own if they need support for the "Linux kernel", because, according to EDS, the "Linux kernel" is not supported. (Now, what kind of logic is that?)

    You should remember that not everyone reads Slashdot.

  26. More food for thought... by Anonymous Coward · · Score: 3, Interesting

    Link to an article I found which pretty much tells it like it is:
    http://madpenguin.org/modules.php?op=modload&name= News&file=article&sid=410

    These guys really need to get a grip. The whole world is laughing at them, and it's time they come clean with the code they claim they have. Torvalds stated that he would personally REMOVE/REPLACE the offending code IF it was found.... so what's the issue? $$$$$

  27. Y A SCO Headline... by dark-br · · Score: 5, Funny

    This headlines are getting boring. I have some sugestions:

    SCO to Sue God

    Darl McBride Caught in Bizarre Love Triangle With Bill Gates, Penguin

    Darl McBride to Rename Self Darth McBride, Builds Death Star

    SCO Accidentally Sues Self For 10 Billion

    Local Man Wonders What Is This SCO Shit

    SCO Enters Partnership With Gorzo the Mighty (subtitle: New Corporate Motto: "Seize Him!")

    Infinite Number of Monkeys Write UNIX, Sued by SCO

  28. CEO of Novell said it best by Anonymous Coward · · Score: 3, Funny

    The CEO of Novell, the company that "sold" Unix to SCO, was recently quoted as saying, "they're confused about what they actually own."

  29. Illegal either way? by SteveOU · · Score: 4, Insightful

    So either SCO was untruthful in its 10K filings, violating SEC regulations and its obligations to its stockholders and the financial community in large. Or....SCO is publically overstating its profitablity and assets (consequently boosting their stock price) while its executives dump all their holdings.

    Either way, what they've done is illegal. The question for us - the open-source community - is finding someone with legal standing to make an issue out of it. Find two parties, one who would have been injured by the allegedly incorrect 10K filings, and other who would be injured by price pumping (recent buyers of SCOX). If each party sues for $XX million, someone would win and SCO should loose a big chunk of their relatively small cash assets, either by damage awards, SEC fines, or legal fees. Either way, it puts them out of our collective misery.

    Of course, IANAL. But it sounds good, doesn't it?

  30. jury trial? by twitter · · Score: 2, Insightful
    ..if SCO's claims are truthful. If they get a jury trial, Linux is doomed.

    "If the case is shit, you must aquit." Dayrl may not go to jail if he manages to get a "jury trial", but Linux and free software are not doomed.

    --

    Friends don't help friends install M$ junk.

  31. Why hasn't Open Group sued SCO yet? by Artifex · · Score: 3, Insightful

    It's obvious that they're deliberately misleading people in their press releases/conferences and even in their legal filings. They're damaging the trademark, and Open Group needs to respond a lot more strongly. Threatening to remove SCO's ability to use "UNIX" would be a nice first step.

    --
    Get off my launchpad!
    1. Re:Why hasn't Open Group sued SCO yet? by Dolohov · · Score: 3, Informative

      SCO is a member of Open Group, so that's not all that likely. Besides, I'd prefer to keep the ability to use "UNIX" purely a function of the operating system's virtues, not of politics.

  32. I don't understand these IP lawsuits by Mr.+Darl+McBride · · Score: 4, Funny

    I'm still a bit baffled by why these IP lawsuits are still going on. I mean, surely IBM is using DNS for all important operations. Can't they just give SCO its IP back and purchase a new C block on ebay like everybody else? Seems safer than letting a $3 billion claim go to court, and a whole lot cheaper too.

  33. About their XFS claims... by Anonymous Coward · · Score: 5, Interesting

    In this article "SCO's next target: SGI?"
    (http://zdnet.com.com/2100-1104_2-5072061.h tml), we find this gem:

    In his August presentation, [SCO senior vice president Chris ] Sontag
    said XFS in Linux includes 173 files and 119,130 lines of code that
    infringe the company's intellectual property.

    Oh reaaaaly?

    Hm, how many lines are in Linux XFS?

    [nobody@penguin xfs-kern-2.6.0]$ find . -name \*.[c,h] | xargs wc --lines
    133482 total

    Yay! SGI still owns 14,352 lines I guess.

    Wait, but they said lines of code... strip comments & blank lines:

    [nobody@penguin xfs-kern-2.6.0]$ find . -name \*.[c,h] | xargs stripcmt | grep -v ^$ | wc --lines
    92618

    So, they claim to own 26,512 more lines of code in Linux XFS than -actually exist- in the codebase.

  34. Re:New exciting business investment!-even better by OpenSourcerer · · Score: 5, Funny

    Darl McBride
    SCO GROUP INC
    355 South 520 West, Suite 100
    Lindon, UT 84042

    My Dear Friend,

    I hope this letter finds you in good health. This is the letter of the Unix past. It will bring you great fortune. All you have to do is pay the party mentioned above, a small sum ff $699. Then immediately send this letter to six other friends. If you do so, you will have great luck.

    Mr. Scott McNealy of Santa Clara, CA immediately paid the above mentioned money and sent the letter to his friends. Great luck came to him. The sun will always shine in his little kingdom

    William Gates of Redmond, WA paid the sum immediately. All his legal troubles melted away. He became extremely rich and powerful.

    Samuel Palmisano of Armonk, NY ignored this letter. Great ill luck be fell him. His rights were aixed. The great plague of Boise swooped down on him. He lost everything.

    So please don't ignore this letter. Immediately do as directed and have the Lady Luck of Unix smile upon you.

  35. Linux customer list for invoices? by rufey · · Score: 5, Insightful
    If SCO is indeed considering sending Linux invoices to end users, be it commercial entites or the home user, how in the heck is SCO even going to obtain a list of Linux users?

    I don't think that Red Hat, SuSE, or any of the other Linux vendors are going to give SCO a list of people who have purchased Linux so that SCO can turn around and send out invoices.

    Sure, SCO can assume that some Fortune 500 companies are using Linux in some way and send out invoices to those, but, I don't see how SCO will have any solid proof that any of them is using, say, Red Hat Linux unless someone tells SCO first that such and such company is using Red Hat.

    So company X gets an invoice from SCO and ignores it. What is SCO going to do? Send someone out from SCO, unannounced, that just shows up and expects to be able to do a thourough audit of the companie's computer networks to find any trace of Linux? Even though SCO may have said that they'd do audits like this, do you really think that SCO is going to have the manpower and money to audit literally thousands of companies?

    If you think SCO can do that, I'll show up at your company Monday morning and demand an on-site audit so that I can do a complete network audit and look for any Linux machines that might be running any code that I have personally written. I expect full cooperation. I'll send my bill to you the day before I get there.

    The bottom line is that while SCO may send out invoices to customers for using Linux, SCO doesn't have much of an idea which of those customers are using Linux, unless Linux vendors have shared their customer list with SCO in the first place. That, or SCO is doing some sort of Internet scanning looking for Linux systems. And don't think for a minute that most companies will put up with SCO coming to do a audit of all their computers.

    Its time that SCO puts up or shuts up. I'm getting tired of reading the SCO posts on /. and in the media, even for their entertainment value.

  36. I can see by RevSmiley · · Score: 2, Insightful

    Lawyers have no sense of humor, One has already modded the parent as a troll because they can't stand to have some one read it. Too bad it's the truth lawyers are the sole cause of 99% of all the difficulties in the US. Who is driving this law suit? Lawyers. Who is allowing the spread of all this FUD? Lawyers. Who is trying to make sure anything done is "legal" but could care less if it's moral or ehtical? Lawyers. Anyone who would trade with SCO is scum but lawyers are a lower life from than that.

    If I had to choose between a car thief and a lawyer I would choose the car thief at least I can keep a eye on my car. Lawyers steal everything and often just out of evil nature and spite.

    King Henry, VI part II act IV
    "The first thing we do, lets kill all the lawyers."
    It's a joke about lawyers sure it is. There are to many lawyers. Do your part.

    --
    As you can see I don't care about my karma.
  37. SCO "invoices" a threat - not a reality by gnutechguy · · Score: 4, Interesting

    Isn't it funny that no one is able to even throw money at SCO for a "Linux License?" I emailed scoinfo@scosales.com and asked about these magical mystery linux licenses and got no answer but an offer to buy "SCO Unix" and threat to be billed for asking so many questions.

    NO ONE has actually been sent an actual invoice; SCO has merely made threats in the press to do so.
    I do not think they have any intention to actually send any real "invoices"; that would be fraud. They just want to make headlines and grab fast cash.

    With the The Open Group, who even Darth McBribe ackowledges hold the trademrak to "UNIX", I do not know what wild claim is left for SCO to make. They will probably claim next that their IP claims to Unix trumps the Open Group's Unix trademark. Because of course, SCO claims always trump all other claims.

    I am a former Microsoft guy who is in the process of converting to Open Source, and I will enjoy watching SCO die a horrible death at the hands of the Open Source/Free Software community.

    --

    ... and beyond them a far green country under a swift sunrise
    1. Re:SCO "invoices" a threat - not a reality by code+communist · · Score: 2, Interesting

      "Isn't it funny that no one is able to even throw money at SCO for a "Linux License?" I emailed scoinfo@scosales.com and asked about these magical mystery linux licenses and got no answer but an offer to buy "SCO Unix" and threat to be billed for asking so many questions."

      Great minds think alike . I did the same thing- e-mailed 2 requests for invoices for my use of "their" Linux IP (in July), and last week telephoned them. SCO said they would not invoice me, a user of multiple Linux 2.4 distros in a commercial setting, but they did tell me they would "take a credit card order." Sure- so they absolve themselves of all liability that invoicing someone could incur. Wonder what would be on that cc receipt? I really don't understand- SCO threatened me, a commercial Linux user, on their website and told me I need to "buy me a license," but they won't sell me one. Extremely interesting.

      I think we shall soon see the GNU critter gore Mr. Darl McBride with its sharp horns, or give him a good swift kick in the pants. As a shell-shocked survivor of the First Unix Wars, where most people did nothing but whine and wait for the courts to settle things, my advice is- do something. Take a stand. Fight this FUD. There was only 1 victor in the First Unix Wars- Microsoft. Let's not let that happen again. React.

  38. Differences between 2.2 & 2.4+ code? by Tristan+Tzara · · Score: 3, Insightful

    So, SCO claims 2 million lines of code to be infringing, which, without conversion to elephant intestines, looks like a mighty large figure. Instead of calculating the total code in supposedly infringing sections (as some have done), why not just take 2.2 and 2.4+ side by side and enumerate the differences? This might give us a better idea of just how much crack SCO is smoking.

    Excuse me if I'm missing something...

  39. Ob. quote by MegaFur · · Score: 4, Funny

    [ McClane and Zeus are speeding through Central Park]
    Zeus: Are you aiming for these people?
    John McClane: No.
    [Pauses]
    John McClane: Well, maybe that mime.

    --
    Furry cows moo and decompress.
  40. From SCO's SEC Filing by bernywork · · Score: 5, Interesting

    Yes, yes, this is the conspiracy theorist in me sure, but read this and make up your own mind.

    " We initiated the SCOsource effort to review the status of these licensing and sublicensing agreements and to identify others in the industry that may be currently using our intellectual property without obtaining the necessary licenses. This effort resulted in the execution of two license agreements during the April 30, 2003 quarter. The first of these licenses was with a long-time licensee of the UNIX source code which is a major participant in the UNIX industry and was a "clean-up" license to cover items that were outside the scope of the initial license. The second license was to Microsoft Corporation ("Microsoft") and covers Microsoft's UNIX compatibility products, subject to certain specified limitations. These license agreements are typical of those we expect to enter into with developers, manufacturers, and distributors of operating systems in that they are non-exclusive, perpetual, royalty-free, paid up licenses to utilize the UNIX source code, including the right to sublicense that code.

    The amount that we receive from any such licensee will generally depend on the license rights that the licensee previously held and the amount and level of our intellectual property the licensee desires to license. The two licensing agreements signed by us to date resulted in revenue of $8,250,000 during the quarter ended April 30, 2003, and provide for an aggregate of an additional $5,000,000 to be paid to us over the next three quarters. These contracts do not provide for any payments beyond 2003, except that Microsoft was granted the option to acquire expanded licensing rights, at its election, that would result in additional payments to us if exercised. In connection with the execution of the first license agreement, we granted a warrant to the licensee to purchase up to 210,000 shares of our common stock, for a period of five years, at a price of $1.83 per share. This warrant has been valued, using the Black-Scholes valuation method, at $500,000. Because the warrant was issued for no consideration, $500,000 of the license proceeds have been recorded as warrant outstanding and the license revenue associated with this arrangement has been reduced for the fair value of the warrant. "

    --
    Curiosity was framed; ignorance killed the cat. -- Author unknown
  41. Except that... by linuxjack55 · · Score: 2, Informative

    ...their second quarter 10Q reported a $4.5 million profit on the basis of $6.1 million in net licensing revenue. Pull out the net licensing revenue, and SCO had a $1.6 million loss for the quarter.

    What the SCOspeak in the filing cited in the article means is that if licensing revenues don't increase, then the mounting losses from their core business are going to drag the company's bottom line into the red.

    And, yes, that means their core business is currently unprofitable and, as their Q2 financial shows, has been in the past. In fact, the only profitable quarters in the company's history have been the last two quarters of the current fiscal year. The profits for both of those quarters are exclusively attributable to "licensing revenues".

    In short, SCO's "core business" -- whatever that is or was -- has always been unprofitable.

    See, kids? That's why knowing how to read a financial statement is more important than anything you learn in school.

    --
    The trouble with practical jokes is that very often they get elected. -- Will Rogers
  42. Re:It is SCO by olderchurch · · Score: 2, Interesting

    I do. They may not have a foot to stand on (if this is an english expression?), but htey canb throw a lot of dirt around. And hurt a lot of people in the process.

    This is why I take all this shit seriously. I would hate to see the demise of for example Red Hat, because nobody wants to buy their products since they are uncertain what the legallity of linux is.

    --
    Disclaimer: This opinion was created without the use of any facts
  43. Re:Oh for chrissake by jcast · · Score: 2, Funny

    You can't be bothered to read the headlines? Right. Just what I expect from a M$ fan...

    --
    There are reasons why democracy does not work nearly as well as capitalism.
    -- David D. Friedman
  44. 'This IP battle is only one part of SCO's busines' by SharpFang · · Score: 2

    Not surprisingly so. It would be interesting to see a company based solemnly on profits from lawsuits -that company- against -rest of the world-. Let me suggest a business plan without the tricky '???' part.

    1. Start a company, without any real production but with bunch of lawyers.
    2. Patent whatever you can, most common daily use items recommended.
    3. Sue EVERYONE!!!
    4. PROFIT!!!

    --
    45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
  45. Re:Not a good idea by Anonymous Coward · · Score: 2, Interesting

    You want some what-if on SCOX? Okay.

    First, forget about price per share. Look at the whole company. SCO is worth fuck-all for the OpenServer/UnixWare division, maybe $10 million to $20 million at most. The real action is in the IBM lawsuit and in the prospect of collecting butt-loads of Linux license fees.

    The IBM lawsuit is worth, at most, $3 billion today. That is in the ludicrous event that IBM says "fuck it, we'll just pay the face amount of the suit". But that never happens. A more realistic bad scenario would be 10% or 20% of the face amount, or $300 million to $600 million. And SCO's lawyers take 30% (a guess) of that, so $200 million to $400 million left for SCO.

    As for the Linux license fees, even if you postulate that SCO pulls some really amazing legal trick out of its ass, then you just know there will be a matching really amazing mass migration from Linux to *BSD shortly thereafter. SCO would be lucky to collect anything in the $10 million range for that.

    So take $400 million, divide by the shares outstanding, 15 million shares, and you get $27 per share as the value of SCOX if SCO gets a high-end settlement from IBM.

    Or look at it another way: at $100 per share, SCO would be worth $1.5 billion, which would be a ludicrous settlement from IBM (the leftovers from a $2 billion settlement after the lawyers take their contingency cut). If IBM was willing to settle for $2 billion they would have done so back when the face value of the suit was only $1 billion.

    The thing about short positions is that when they go sour, they turn against your equity MUCH FASTER than sour long positions. You should be experienced at using stop-loss techniques before shorting a volatile stock like this, and you should have enough cushion to sustain a 100% loss.

    Advice from an AC, worth whatever you believe it is worth.

  46. Re:May be over soon by kramer2718 · · Score: 2, Funny

    I dont't know...

    It's a little bit scary. I saw Al Gore debate GWB in 2000. Even though Gore didn't sound so brilliant, he didn't sound like he had his head up his ass. GWB was clearly giving his speeches from the inner sanctum of his rectum.

    I draw a parallel there with the SCO case. No matter how shitty their argument smells, if a small amount of the population and a few judges enjoy the scent, we could all be fucked.

  47. Re:SCO stock facts... by gnutechguy · · Score: 2, Interesting

    The SCOX discussion board on MSN (hey I wanted to ask questions there) is now "not active."
    I think M$ got tired of embarrassing questions being asked on a stock board.
    Just another way for SCO/MS to control the flow of misinformation

    --

    ... and beyond them a far green country under a swift sunrise
  48. Changing Times by code+communist · · Score: 2, Insightful

    IMHO, had SCO pulled this stunt 15 years ago or so, they might have gotten away with it. Here is why- the internet in its present form did not exist. Large-scale dissemination of unfiltered information worldwide was simply not possible. We relied on our media filters- publications like ZD and ComputerWorld and newsletters from industry analysts like Gartner for our information. And our media filters were not very reliable- look at the current situation, where "respected analysts and journalists" from Dvorak to DiDiot are so far off base on their reporting of this matter. Not just off-base, plain incorrect. Before the net, a savvy player could use these journalists and analysts to disseminate FUD, and have a real impact. But today, the net has given us unfiltered opinion from a variety of sources- and many of these sources know much more about the issues than the IT journalists. Not only that, the net allows us to see how other countries are handling the matter. Take the LinuxTag suit against SCO, and its consequences- this was hardly reported in the US IT media. What the net is doing is giving us much freer and more reliable access to information. Don't believe all that the journalists say when they start spouting off about the necessary job of filtering the news. These are the same people who have reported on the SCO lawsuit so dismally until very recently. They are the same people who gave us "news" made up by Jayson Blair. And most importantly, they are the same companies who depend on advertising dollars from the big players like M$ to keep themselves in business.

  49. Re:Parse this :) by mec · · Score: 2, Interesting

    Prior to 1997, the company currently known as The SCO Group never reported a profit. Here's information from your S-1 registration

    Began operations in 1994
    Year ended 1995-10-31 revenue $0, net income ($1,350,000)
    Year ended 1996-10-31 revenue $1,108,000, net income ($2,757,000)
    Year ended 1997-10-31 revenue $1,117,000, net income ($8,148,000)
    Year ended 1998-10-31 revenue $1,057,000, net income ($7,963,000)
    Year ended 1999-10-31 revenue $3,050,000, net income ($9,367,000)

    So who exactly is this "we" you are talking about? Because "your" company, The SCO Group, has had no profit in its entire history, except for the profit from the SCO Source program.