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SCO Backing Off Linux Invoice Plan
rocketjam writes "CNet is reporting that the SCO Group is backing off plans to send invoices to corporate users in an effort to generate more takers of their Linux licensing plan. A spokesman said SCO executives were happy with current progress in the licensing program, and didn't feel they needed to send out invoices yet. SCO also extended the 'introductory' licensing price to the end of October, at which point the amount they are asking will double. Despite SCO's threats, 84 per cent of CIOs in a recent survey said it hasn't affected their plans to implement Linux."
I doubt this has anything to do with SCO's "satisfaction" with the level of response, but rather with the advice of their lawyers.
Generally, invoicing for other people's work is not held in high regard by the law.
~ Whence do you come, slayer of men, or where are you going, conqueror of space?
SCO doesn't like the fact that IBM and Red Hat are both fighting back. They decided it would be bad to have more companies filling suit at the same time.
"If, therefore, any be unhappy, let him remember that he is unhappy by reason of himself alone."
~Epictetus
So one CIO in 7 has changed his plans to switch to Linux.
That's not a paltry number, I'm sure.
A more interesting article regarding kids and games today is here.
They haven't sent out invoices because they're satisfied with the response on their Linux licensing program? Are you sure it isn't the fact that it would be illegal, and would get them into endless hot water? No, no, it's because they're getting loads and loads of money from 'concerned' companies.
Despite SCO's threats, 84 per cent of CIOs in a recent survey said it hasn't affected their plans to implement Linux."
This means that 16% of Linux implementations HAVE been affected by SCO's threats. I expect that this represents significant financial damage to Linux businesses as will be represented in the sure-to-ensue lawsuits that will follow SCO on its way down the toilet.
Does anyone else find it frightfully disturbing that 16% of CIO believed the SCO's claims to hold enough water that they've changed their implementation strategies? I understand why a company that wasn't already using Linux would see this as a reason not to swap. But to be using or implementing Linux and to change your mind against it because of this seems like a rather signifigant change in attitude.
Buy Steampunk Clothing Online!
"In other news, SCO's stock surged $4.97, or 32 percent, to close at $20.50 Wednesday, after Deutsche Bank analysts Brian Skiba and Matthew Kelly initiated coverage of the company with a "buy" rating and a $45 price target for the stock"
We all know SCO does not want to reveal they secrets they say is their property. It's already been revealed! If SCO wants to send a bill to people or artificial entities (corporations) to use their intelectual property, then they should've obyed the Patent Laws by registering the IP in question at the patent office as theirs. Then, after the conclusion of their monopoly to profit on their IP, the IP patent is dissolved and the knowledge becomes Public Domain. Yet, according to the Bible, if IP was a secret that was never published, then the following scripture would gracefully adapt to todays situation...
Deuteronomy 29:29;
The secret things belong unto the LORD our God: but those things which are revealed belong unto us and to our children for ever, that we may do all the words of this law.
This is agreeable, and so is Thomas Jefferson's intention of patents on IP. Anyone willing to second this motion for the Bible and Thomas Jefferson?
Yea, Amen!
Secured Party, Without Prejudice, UCC 1-207: Creditor
So basically SCO has changed their position from:
to:
84 per cent of the topics that were associated with this artical were probably unnecessary. Or is it just me who thinks that having 7 icons running down the side of an artical is a tad too many?
---
Any man who can drive safely while kissing a pretty girl is simply not giving the kiss the attention it deserves. -- AE
I can't wait for this whole SCO thing to go away. Maybe it's a bit like that simpsons halloween episode where the billboard ads come to life. If you ignore them. They'll go away.
SCO died because of Linux. They thought they were the only intel based Unix OS out there. They didn't innovate & they died.
You tried your best, & you failed miserably,
The lesson is:
Never Try
As soon as they send out any invoices, companies that get them can choose not to pay.
An invoice is a demand for payment, but you're not required to pay if you can prove that you didn't receive goods or services from the company making the invoice.
So, the first time someone challenges it, SCO will lean on them and say "Don't make us MAKE you pay us", that company will say "Go on then." and SCO has a choice.
1) Go to court
2) Back off
If they choose 1, then the the court proceeding might look like this:
Defendent: We haven't received any goods or services from SCO, and are therefore not going to pay this invoice.
SCO: Yes you have! You're using Linux! It has our code in it! Pay up!
Defendent: Prove it.
SCO: No! We don't have to!
Judge: Case dismissed. Stop wasting the court's time, SCO
IANAL, as you can plainly see, hehe! But, I really fail to see how SCO would be able to enforce payment on any outstanding invoices even if they did send them.
No, the safest choice is by far to ignore this whole mess and keep doing what you were doing before SCO lost it's collective mind.
SCO Group Inc (The) SCOX 20.50 4.97 (32.00%)
Red Hat Inc RHAT 12.85 -0.15 (-1.15%)
International Business Machines Corporation IBM 92.74 0.02 (0.02%)
Pump and dump time!
READY.
PRINT ""+-0
Not according to the article:
boy, am i relieved! i was getting really worried there for a while.
no... no wait... no, actually, my policy is still that they can kiss my ass. yeah, that's it. sometimes i forget my policy on that.
Actually, I'd say that this is more reasonably taken from a pessimistic view. *16%* of all CIOs were negatively influenced (seems unlikely that it's a positive influence) toward Linux because of this one SCO money grab.
May we never see th
What I mean was they said they'd invoice users for the press they got out of it. They most likely saw it as a way to pump up their stock price and deflect negative publicity.
Point is, SCO is all bluff and no action. Does anyone really think they'd be stupid enough to really send those invoices and risk being bombarded with lawsuits? These guys want to be the ones filing the suits, not the ones being sued. They're trying as hard as they can to project the image that they're in control of the situation and confidently moving forward. At this point, bluster, hyperbole, and vague threats are all they have.
Someone may point out that they actually followed through with their threat to sue IBM. True, but they had to do something to initially give themselves some credibility, and they probably figured Big Blue would buy them out to make them go away. Now they're stuck in a situation they can't control, with IBM countersuing.
As for the decision to call off the invoices and extend the introductory prices for licenses, let's cut right through the bullshit and look at how businesses operate. If sales are going well, you don't back off of your strategy. If they feel that they're selling licenses to scared companies, they'd have no problem ratcheting up the pressure. They may have sold a few, and they may see sales trickle in, but they probably figure that raising the price will cause sales to decline by more than 50%, since they were going to double their prices for licenses. But my strongest suspicion is that they're stalling for time. They probably aren't selling a damn thing, and they've probably already decided that sending invoices won't help matters much.
I still firmly believe that the way to deal with these clowns is for anyone who's contributed to Linux development to sue them for slander. For an individual, filing a suit can be difficult and expensive, but perhaps those who are interested could join forces under the umbrella of an organization such as the FSF.
Look at it this way. SCO is like the cockroach in your kitchen that comes out at night to scavenge for food. Sure, it'll run and hide when the lights come on, but as soon as you leave and turn off the lights, it'll come back out. If it's one of the aggessive flying variety, it might even fly at you to frighten you, even though you're in no real danger. In any case, the only way to make the vermin go away for good is to kill it. SCO isn't going to go away until the Linux community picks up a shoe and splatters it all over the wall.
So basically we can say 499 out of 500 Fortune 500 companies don't feel any need to pay SCO for the use of Linux after all of SCO's PR work.
People have guessed Microsoft as the Forture 500 company. There's an alternative option. SCO has a large customer that's no small fry.
Some know that McDonald's uses SCO at their cash registers for POS. Perhaps SCO managed to sell them Linux licenses in exchange for other favorable treatments.
"Pay up, we'll be sending out invoices"
Then a few months later:
"We won't be sending out invoices"
If they'd actually sent out any of the invoices, they could have been prosecuted for wire fraud. Which is, of course, why they didn't. The phantom "invoices" were just a trick to get people to think that there was something to this, and trick people into coming to SCO preemptively.
However, given that: Is SCO violating any kind of fraud/barratry laws by claiming they were going to send out these invoices, then not doing it? (At least given that the claim was clearly a way of tricking people into "voluntarily" giving up money?) Any at all? Just checking..
Irritable, left-wing and possibly humorous bumper stickers and t-shirts
"The executives have said we haven't had to do it yet," SCO spokesman Blake Stowell said of the invoice plan. They're happy with progress in the licensing program."
Translation:
Our stock is still soaring from our last round of FUD. The board is concerned we might have used too much of our FUD supply pumping our share price up and might not have enough left over to cover our asses when we start dumping our shares. Just good textbook FUD managment.
SCO Stock soars
Another one
Fastest Growing Company !!!
If this is the advice given to investors then it is no wonder that the markets are in such a mess. In fact these experts think that $45 dollars will be a fair target.
"Skiba calculated his $45 price target by forecasting earnings and revenue based on licensing agreements for Unix and other licensing opportunities."
Do we know whether or not the licenses granted to Microsoft etc were perpetual or annual, because otherwise I cant see where they think the additional funds will come from ?
From the article it also looks as though they are still angling for IBM to buy them for $1 BILLION. I think IBM will not buckle and will just crush them.
If a corporation issues an invoice to another business in the same country, then it is legally obliged to collect the sales tax (TVA, VAT, MWST)and pay it to the government. The tax has to be paid on a due date which may be before the invoice is paid. The other company pays the invoice including sales tax, then claims the sales tax back (yes, I agree, it's hard to think of a more stupid system but it is intended to combat fraud.)
If SCO tries the scam of sending out invoices, it will incur a huge liability for tax. The tax liability is a big inducement not to send out fraudulent invoices. Eventually the invoices will appear as bad debts, and that won't look good on the balance sheet either.
This leaves SCO with the option of sending out cross-border invoices. However, these are far less likely to be paid since even the most nervous accountant is unlikely to want to pay a US invoice for the claimed use of IP in a German product.
And my conclusion? Even more R&D and backoffice business goes to Europe, China and India. It's safer to do business there.
Panurge has posted for the last time. Thanks for the positive moderations.
SCO are just trying to get their stock price high enough to buy a better company.