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IBM Puts Pressure On SCO

inode_buddha writes "An article at Groklaw shows IBM's legal team dissecting the whole SCO thing professionally and thoroughly. I'm almost willing to bet the case gets dropped with extreme prejudice, especially now that Novell is getting involved. Is anyone taking bets as to when the case actually closes and how?" I suggest the MIT Technology Review add this one to their markets.

31 of 395 comments (clear)

  1. 2/1 by L-s-L69 · · Score: 4, Insightful

    Case closes. All SCO execs having got rich, got jobs with micro$oft or just laying low for a while. No charges pressed, only people who suffer are SCO's employees. SCO gets taken over or closed for good.

    1. Re:2/1 by Zocalo · · Score: 4, Insightful
      only people who suffer are SCO's employees

      And the fools who bought SCO stock thinking they were going to get rich, but didn't quite dump the stock before the inevitable crash when the case collapses. I can't say I'm feeling sympathetic though.

      --
      UNIX? They're not even circumcised! Savages!
    2. Re:2/1 by penguin7of9 · · Score: 2, Insightful

      No charges pressed, only people who suffer are SCO's employees. SCO gets taken over or closed for good.

      SCO investors stand the most to lose--the dummies that just paid top $$$ for inflated SCO stock prices.

    3. Re:2/1 by j3110 · · Score: 2, Insightful

      I'm kindof torn on that one. Anyone actually stupid enough to invest in SCO probably is just going to get what they deserve. It takes a pretty big idiot to invest in a company that is in the middle of a lawsuit to begin with. Legalities are expensive and non-productive in the long run. Just taking my few ECO classes in college tells me to only invest in companies that have something marketable (SCO Unix isn't marketable in it's current form compared to competition). Thinking SCO can stamp out all it's competition with a horde of lawyers would be very naive.

      Nope, naive investers are about to learn a very expensive lesson in economics that only costed me 300$ tuition + 50$ book. :)

      --
      Karma Clown
    4. Re:2/1 by Anonymous Coward · · Score: 1, Insightful

      On the other hand, investing in SCO means that you can sue the board of directors for mismanagement...

    5. Re:2/1 by IANAAC · · Score: 1, Insightful
      And the fools who bought SCO stock thinking they were going to get rich, but didn't quite dump the stock before the inevitable crash when the case collapses. I can't say I'm feeling sympathetic though.

      I'm not sympathetic to them either, frankly. The stock market, instead of being a place to back your belief in a company and its products, has become a place to gamble and get rich quick.
  2. Good or bad? by GrouchoMarx · · Score: 4, Insightful

    I can't really decide if I want this case dismissed or not. (I know my desires in the matter have nothing to do with it, but hear me out.)

    On the one hand, if the judge comes back with "SCO is lying through their teeth, there's nothing here, SCO bugger off, sorry about all the trouble IBM", then it will neatly tie up the FUD machine and probably bring an end to SCO right quick. Yes, there IS such a thing as bad PR, and we don't want any more of it. :-)

    On the other hand, a dismissal would not allow for a vetting of the GPL in court. Of all the possible tests of the GPL, this is perhaps the most pro-GPL case we could hope for. (Not SCO's accusations, but IBM's responses that SCO is in GPL violation.) For a judge to formally declare theat the GPL is indeed valid and legally binding would be a very good thing, but won't happen before 2005 at the earliest the way this case is going. That's a lot of FUD time.

    I really can't decide which to root for. :-)

    --

    --GrouchoMarx
    Card-carrying member of the EFF, FSF, and ACLU. Are you?

  3. Re:this is by bhtooefr · · Score: 2, Insightful

    It's been stated time... after... time... That's why it's been modded redundant. Basically, if you say something at the beginning that hasn't been said in that story, you're OK, unless it's a joke, in which case you've gotta make sure you're not beating a dead horse.

  4. Re:What if... by nilsjuergens · · Score: 1, Insightful

    > I allready paid my license to SCO, will they be returning my $699?

    If you already paid, then you deserve to be ripped off (think auto-LART).

    It is all about stupidness. Stupid people click on links in spam, stupid people feed the trolls, stupid people give SCO money, stupid stockmarkets give SCO Execs money, stupid journalists report every fart venting out from a SCO office etc. etc.

    If it werent for the stupid ones, all of the above would just go away.

    --
    -- Having problems sending big files over the net? Try out Efisto (http://efisto.org)
  5. suit != countersuit by subzerohen · · Score: 2, Insightful

    Parent is absolutely correct.

    Dismissal of SCO's suit doesn't mean dismissal of IBM's countersuit.

    In IBM's countersuit they accuse SCO of copyright violations and GPL violations. The GPL will have it's day in court. There is nothing SCO can do about that now.

  6. THAT'S NOT THE POINT by locarecords.com · · Score: 3, Insightful
    ...

    Who ares which way the legal action goes.. That is not the point. The idea is to spread enough confusion and uncertainty that corporate entities will be more likely to use perceived 'legal' and 'safe' versions of unix that don't have any licensing issues.

    Fear, Uncertainty and Doubt contribute to the bottom line when it comes to conservative decisions about technology platforms. And let's face facts how many people read below the headline with its exagerrated emphasis on legal uncertainty and disarray.

    No company wants to risk their technology decisions being upset by later unbudgeted licensing, legal and technical problems when the quiet life of a standard product from a multinational is on the shelf next to it...

    --
    ---- The Open Source Record Label : : LOCARECORDS.COM
    1. Re:THAT'S NOT THE POINT by pjrc · · Score: 2, Insightful
      No company wants to risk their technology decisions being upset by later unbudgeted licensing, legal and technical problems

      Why then, do that almost all use Microsoft Windows??

  7. There will be no lawsuit ? by MaGGuN · · Score: 3, Insightful

    I suspect SCO will stop before any actual lawsuit takes place, using some obscure excuse. But at the same time holding their doors open for future litigation, just to maintain the insecurity among todays and future linux users.

  8. Re:Fraud by cdrudge · · Score: 5, Insightful

    But Marth inside trading a few million worth of stock (for a net gain of only a few hundred thousand dollars IIRC) does...

  9. Clarity of response by theolein · · Score: 5, Insightful

    IANAL (or his coffee boy) but one thing strikes me almost immediately upon reading the SCO and IBM requests and responses: IBM's method and language is far clearer and to the point than SCO's. IBM does not resort to the use of (semi)abusive language but stays focussed and follows avery clear pattern of logic which basically states that IBM will present reasonable evidence as requested, but it requires that SCO also provide resonable evidence and point out exactly what, where and when has been infringed. That is something that SCO seems to have real problems in doing (and no, the 337'000 lines in 531 files in the Linux source that have been mentioned by SCO will not suffice as nowhere does SCO point out exactly, as required by law, which lines in those files are SCO's property with a reference to Unic source code), and SCO seems to have real problems in defining what has been infringed. In fact it seems as if SCO is trying to make a case as it goes along and has no real evidence to date.

    What is also noticable is that IBM is bringing SCO's public behaviour into the case, finally. SCO is finally being called to account for it's disgusting public behaviour, and I'm pretty sure that IBM is going to use Darl, Chris and Mike's statements against them in court. I think those boys are probably too fucking stupid to realise that what they're said amounts to public record and is admissable in court. I hope they end up being as poor as I am. I hope Darl and co get sued individually by hordes of Linux contributors for damaging Linux business and end up poverty stricken on the street corner begging for booze money in Salt Lake City.

    1. Re:Clarity of response by Anonymous Coward · · Score: 3, Insightful

      I believe that you're correct. I just spent quite a while reading these notes and I notice a pattern.

      In IBM's response to discovery, it actually lists substantive complaints and gives SCO a reasonable amount of material for discovery (e.g. the sources to several AIX & Dynix versions). They could, perhaps, have given SCO a bit more, but they may already be working on that and much of what SCO asks for is irrelevant. SCO's complaints about IBM not producing enough in discovery strike me as whiney. They've gotten a truckload and it's their own damn falut that their requests are so vague. They do not make them the least bit more specific, they just fault IBM for not providing ALL that they've asked for (just look at how, in EVERY deficiency listing, they have the word "all" in bold italic).

      IBM, on the other hand, asks for something very specific: they want to know what they've infringed upon, according to SCO. SCO can't even give them that. Since that is the gravamen of the entire damn case, you'd think that SCO could give them something more than a huge list of filenames which might have some SCO code or something in them. SCO no longer seems very sure of that--they keep saying they need more information from IBM. But if they don't already know that they have a case, how the hell do they expect to fish for it in discovery? That just screams to me "we have no case, we need all their documents so we can search for one" ... Moreover, they request PUBLICALLY AVAILABLE information (IBM's donations to Linux). Duh. Haven't they heard of LKML and such? I'm pretty sure that the list of ALL of IBM's donations to Linux can be found therein, as well as in the kernels themselves...

      In short, it's clear to anyone who reads both documents that SCO has no case and is desperately searching for something to throw at IBM, while IBM has a large number of substantive complaints and SCO just wants to stall for time.

      But we knew that already, didn't we?

  10. Re:but there are thousands of lines of copied code by Anonymous Coward · · Score: 2, Insightful

    According to the article, SCO pulled up some 519 files which have around 300,000 lines of code, which might or might not contain tainted code. That is something like 1 percent of Linux kernel code.

    You're suggesting the Linux kernel alone has 30,000,000 lines of code in it? I don't think you and I are looking at the same kernel. It would be closer to say that 300,000 lines of code is 10% of the Linux kernel, which would take some substantial rewriting, and makes your last comment stupid.

  11. WHAT ABOUT IBM's LAWSUIT AGAINST SCO? by Anonymous Coward · · Score: 1, Insightful

    Last time I heard, IBM had a whopper of a lawsuit against SCO - for patent violations.

    Someone said patent lawsuits are expensive and just trying to defend from one could crush SCO...

    So, when will SCO get gutted and pan fried by IBM's lawsuits?

  12. Re:How about that. Legalese for the layman by defishguy · · Score: 5, Insightful

    I suspect that IBM is not trying to get the case dismissed at all. IBM is using the threat of dismissal to pressure SC0 into public discourse of the alleged stolen code.

    SC0 desperately does not want the alleged stolen code to enter the public record because we all know it will be 3.2 seconds before any code is re-written in the kernel even if it's IBM doing the re-write.

    This however is a great thing. SC0's case should be dismissed but not IBM's countersuit, which if found to be true will force SC0 to stop distributing Linux and probably their Linux personality kit too. It is IBM's countersuit which squarely applies to the GPL and it is also where the GPL will receive it's vidication.

  13. They can't do that by Anonymous Coward · · Score: 1, Insightful

    Not anymore. IBM filed a countersuit against SCO, and SCO can't make said countersuit go away in any way except to win it.

    It will look very, very bad for them if their lawsuit-- their one and only source of potential future revenue-- drops, yet the IBM case-- an inescapable very likely source of large potential future damages-- does not drop. Bad enough I don't expect any of that stock price to be left..

    Can SCO get out of the IBM case by any form of bankruptcy? If so, can IBM continue their counterusits against the teams of stockholders that are actually controlling SCO at this point?

  14. What about UNIX? by Queuetue · · Score: 4, Insightful

    If this does spell the end for SCO, what will become of UNIX in that case? Is it possible to finally move this ancient codebase - which seems to have little value beyond it's potential as an IP strongarm weapon - into the public domain once and for all?

  15. Re:Fraud by roystgnr · · Score: 4, Insightful

    Everything that SCO has done, they announced to the public months ago.

    SCO announces a lot of things to the public. It doesn't make any of them true. Ever heard directly from any of the MIT mathematicians who found all those millions of lines of infringing code?

    Have you received your invoice yet, and paid your $699 into the program that SCO said got an "adequate" response?

    Do you think any investors are still waiting for SCO to bring up it's copyright claims in court, since it hasn't been able to shut up about them in the media? For some reason SCO has decided to make it's IBM lawsuit entirely about contracts and "methods and ways of doing things" instead, and to claim in it's Red Hat defense that the only controversy between them and Linux will be settled by the IBM suit.

    Wouldn't it be nice to take a look at that "copied" code, too, especially if you decided to buy SCO stock based on those NDA'd reports and made your purchase before it turned out they were just hyping up public domain Unix32V and independently cloned BSD code?

    There are a lot of things that SCO has said in public that are outright lies, and just because you or I can do enough research to determine that doesn't mean every stockholder should be forced to.

  16. Re:Fraud by ebh · · Score: 2, Insightful

    How is it anything but fraudulent to make false public claims regarding the extent of one's ownership of intellectual property then to initiate litigation based on those false claims, causing a baseless runup in stock price which is in turn exploited by the corporate officers for personal financial gain?

  17. Re:So are IBM... by warpSpeed · · Score: 4, Insightful
    Oh wait, both selling patterns are pretty similar

    How can you say that a 47.0% change in "Institutional Shares Held" Vs a 1.1% is similar.

    Those SCO execs are pulling the "yellow handles" hard and fast yelling "eject! eject! eject!".

  18. Or another idea by A+nonymous+Coward · · Score: 3, Insightful

    Where each side can only spend as much as the other. If I am sued by McD, and only want to spend $100 on my defense, that's all they can spend on their offense. Or if I sue McD, and only want to spend $2000 on the case, that's all they get to spend of defense.

    There has to be some minimum, of course, it makes no sense to expect a corporate lawyer to only spend $100 on a case. But no banks of several lawyers deponing hundreds of witnesses just to put the fear of McD in people.

    Another aspect would be an escape clause ... if McD wants to spend $1M, they have to loan me the difference from what I want to spend, and if they lose, they don't get it back. I have to agree to this loan.

    This would apply in all cases, criminal or civil. No more state DAs spending a fortune on sending some illiterate scumbag to the death chamber because his public dedfender only had $300 to spend.

    Anyway, I like my scheme :-) Seems like it ought to go a long ways towards reducing the money power in our legal system.

    1. Re:Or another idea by hendridm · · Score: 2, Insightful

      Hmmm, who sets the "minimum" that can be spent? A million dollar minimum is a lot to me but chump change to a major corporation. Also, by requiring that McD lend you the money, it almost seems like they're being punished before even being found guilty. It would make every crackpot coffee drinker come out of the wood work, piss away an insane amount of money in legal fees out of spite, possibly lose and give McD the finger as they disconnect their phone line to avoid creditors. It also doesn't seem like your life should end (financially) if you indeed feel you've been genuinely wronged, but the judge dismisses based on some ghey reason like "the defendent wasn't read his Miranda rights properly". Now you didn't get justice, you owe a large sum of cash, and your mother is lying face down in a cold dark coffin 6 feet under.

      As much as I like the idea of the little guy getting a fair trial, you have to think about being fair to the company (and those who it employs) too.

      Take the case of the Jack in the Box Ecoli case, or the case where someone went around and poisoned aspirin to make it look like it was a random act when she poisoned her husband ... The victims in the case could say, "Ok, I spent $500 on my lawyer. You poisoned me. Pay up or die!". Meanwhile, they have the supposed evidence that there was poison in the manufacturers products, without giving the defendent (the company) enough resources to investigate and find the true foe - the crazy bitch who put cyanide in OTC drugs at random stores.

      That hardly seems fair, either. Oh course, this doesn't take into account a police investigation, which could be good or bad for either side of the case. What if the police were being unjust or used bad science? That's some free "evidence" for the plaintiffs case, even though the defendent might be innocent, they are not allowed to spend the money required to debunk the bad science.

      IANAL, and I probably know about as much about the legal system as your average Night Court devotee, but I'm not sure what you propose is necessarily the answer. It's a tough dilemma.

  19. Case dismissed, SCO doesn't stop by Wylfing · · Score: 2, Insightful
    It looks like this case is ripe for dismissal. However, the horrible reality is that a dismissal will liberate SCO to continue their FUD campaign in the press without having to show their evidence. The Red Hat case has a chance to make SCO shut up, but expect SCO to dodge that bullet for a long time to come and then figure out a way to settle. They will settle litigation out of court, because publicly traded companies like IBM and Red Hat can't justify the risk of trial after getting a reasonable settlement offer (which SCO can afford because they are trading at almost USD20/share now).

    It ain't over for a looooong time yet.

    --
    Our intelligent designer has never created an animal that we couldn't improve by strapping a bomb to it.
    1. Re:Case dismissed, SCO doesn't stop by Anonymous Coward · · Score: 2, Insightful

      However, the horrible reality is that a dismissal will liberate SCO to continue their FUD campaign in the press without having to show their evidence.

      You're forgetting that IBM still has a countersuit pending against SCO. That isn't going away even if SCO drops their suit against IBM.

      They will settle litigation out of court, because publicly traded companies like IBM and Red Hat can't justify the risk of trial after getting a reasonable settlement offer (which SCO can afford because they are trading at almost USD20/share now).

      No fsck'in way IBM or Red Hat is going to settle. IBM has to prove you can't yank on a lion's tail and then walk away. And Red Hat's entire business is Linux, any settlement that doesn't completely exonerate Linux is no settlement at all.

  20. Party On! by jefu · · Score: 2, Insightful
    Easy enough.

    Martha Stewart is a Democrat (or at least has donated a pile of money to democrats over the years).

  21. I just thought of something..... by Anonymous Coward · · Score: 1, Insightful

    What if SCO really had 2 reasons for doing this:

    1.) Inflate stock price, etc, typical conspiracy theory.

    2.) *VALIDATE* the GPL. They've sold Linux before, they know how much IT managers that are sold on UNIX/Windows bitch about not being sure how stable the GPL is. What if they also planned on this?

    I know this sounds like bullshit, but hey, its a possibility. Microsoft bought licenses from them, what if they want to fuck MS over? What if they actually *WANT* to do something good before SCO dies? SCO knows that its products were crap. Its Linux sales weren't quite up there either. What if SCO wanted to get rich quick, and then validate the GPL? For instance, IBM would probably buy them out. IBM is *THE* pimp for Linux, all of SCO's Linux people would probably work for IBM. In the end, SCO would be somewhat a good guy.

    Just a thought for all of you conspiracy theorists....

  22. Re:but there are thousands of lines of copied code by michael_cain · · Score: 2, Insightful
    SCO really must provide evidence and prove its case since it is the one that brought the suit. SCO would like to get away with just saying that the contract covers everything IBM ever did that could possibly be similar to AIX. And that the mere fact that IBM worked on Linux is evidence of a breach of contract and trade secret misappropriation. Unfortunately, a judge is not likely to allow such a tenuous position to stand and SCO will be forced to provide actual evidence.

    Well, IBM will have to provide the evidence, and is doing so through the discovery process, although it may fall to SCO to organize it. To beat an example to death, consider JFS. There is no question that it is available as part of AIX. There is no question that the code and methods were revealed to the world through Linux. What remains at question are (1) was it ported to Linux from AIX or not, and (2) more importantly, if it was ported to Linux from AIX, do the contract terms require SCO to approve such a revelation? Only IBM has the evidence to prove or disprove the first proposition. If I were one of SCO's attorneys, I would be doing my best to get the judge to rule that IBM should be organizing the evidence to show the development history. And I would be telling Darl and the rest of them to STFU, that there's a whole lot more potential value in quietly winning the contract case in court than there is in sending those damned invoices out...

    IANAL but I play one on TV.

    Really? Is it fun? The closest I ever came was playing obnoxious witnesses in mock trials at law school. That was fun!