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IBM Subpoenas SCO Investors, Analysts

Bigfishbowl writes "Forbes has an interesting article about IBM sending subpoenas to large SCO investors in an effort to compel discovery. An IBM spokesman says IBM is frustrated by SCO's reluctance to produce proof of its allegations. '"It is time for SCO to produce something meaningful. They have been dragging their feet and it is not clear there is any incentive for SCO to try this in court," he says.'"

121 of 507 comments (clear)

  1. Well... by __aavhli5779 · · Score: 4, Interesting

    I am by no means in hell a lawyer, but it seems like IBM is trying to determine whether something much of Slashdot suspects is verifiably true: that some sort of sinister third party (Microsoft comes to mind) is morally and financially behind SCO's actions.

    The question is whether a "Microsoft is behind this whole sham" argument will be as well-received in a court room as it has been on Slashdot.

    I am so not a lawyer that I don't even know whether it would be admissible.

    Or, for that matter, whether my analysis is entirely incorrect.

    1. Re:Well... by Anonymous Coward · · Score: 2, Funny

      I am by no means in hell a lawyer

      Oh, you mean IABNMIHAL.

      I am so not a lawyer that I don't even know whether it would be admissible.

      IASNALTIDEKWIWBA. Hmmm.

      I think we should make IANAL the default assumption, so for those rare, nonexistant occasions an lawyer has something to add, he or she can just say IAAL and we'll save on millions of bits of bandwidth and storage.

      Or, so it doesn't look like "I ANAL" maybe we could use "attorney" or "barraster" or something.

      IANAA or IANAB.

      Think about it, and get back to me.

    2. Re:Well... by Arker · · Score: 2, Funny

      IANALS

      I am not a land shark.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
    3. Re:Well... by Gorobei · · Score: 4, Insightful

      Going after the analysts is a great idea. If they are forced to respond to the subpoenas, they can say:

      a) I just used public information and personal judgement to predict the stock will double in price. This would imply extreme naivety on the part of the analyst, and, given the current lawsuits against analysts pumping stocks, probably gets a Spitzer-style lawsuit against him and his firm.

      b) SCO told me X, Y, and Z, and that is the basis for my estimate. If public info, see above. Else: Woohoo, material information given to analysts yet not publically disclosed.

      c) SCO hinted privately at Microsoft (or other firms) involvement. Great evidence of dirty hands in the case, and maybe a bit of case b).

      In short, I'd hate to be an analyst forced to defend my "strong buy" rating on a stock while also claiming to be an expert in its market sector.

      Note also that the Forbes' article also used the phrase "pump and dump." It's never a good sign when the major media starts propagating such theories!

    4. Re: Well... by Gorobei · · Score: 5, Funny

      We may hear of an SCO offer to settle in the very near future.

      If they do, it will show the same lack of understanding the German high command exhibited at the end of WWII:

      With the Russians surrounding Hitler's bunker, the Germans actually sent an officer out to negotiate peace terms. After five minutes, the Russian general basically said "we have troops and you don't. No settlement other than unconditional surrender is possible."

      SCO has spent six months pissing on IBM. Short of "Darl consents to be publically sodomized by the IBM executive of your choice," SCO may not have any negotiating points left.

    5. Re:Well... by Anonymous Coward · · Score: 5, Interesting

      Well, SCOX was at .70 before this all started and was off everyone's radar. It's not totally crazy that the stock doubled after they announced a $3 billion dollar lawsuit against a large competitior.

      However, the people recommending Buy when the stock is at $20 are probably the same folks pumping money into SCO so they can keep the bubble from deflating. Even if it's an honest recommendation, it's based purely on high-risk speculation and not on any fundementals or facts.

      Contrary to the slashbots, I think it's highly unlikely that this market manipulation is SCO, Canopy, Microsoft, Sun or anyone else. It's probably just independant brokers who know a goldrush when they see one. Just like VA Linux, etc.

    6. Re: Well... by mj01nir · · Score: 4, Funny

      Darl consents to be publically sodomized by the IBM executive of your choice

      Ugh, I thought we were talking about IBM winning.

      --
      the no .sig .sig
    7. Re:Well... by Buzz_Litebeer · · Score: 2, Interesting

      Think about this, if SCO is being puppeted, and no one can tell who. If SCO gets countersued, and decides to just fold up shop (its CEO and other stock holders bailing out before the stock goes down) and then just dump the company. For whoever is behind SCO, and the people that run SCO, this whole thing is a win win situation.

      --
      If you don't vote, you don't matter, so don't waste your time telling me your opinion
    8. Re:Well... by spitzak · · Score: 3, Insightful
      c) SCO hinted privately at Microsoft (or other firms) involvement.

      I'm starting to wonder. It is so obvious that they are doing Microsoft's bidding... is it possible it is not true? Why are investors buying the stock? Surely not for any possible payout from the lawsuit, or any plausable income from Linux. The investors must believe that buying the stock is a way to get some of the big bucks Microsoft is paying SCO! Much better way to get some of their profits than buying Microsoft stock itself!

      But some of SCO's recent announcements, where they more and more shrilly say Linux is dangerous and scary and it's problems could not possibly be solved by their lawsuit, and that they will pay you to use Windows, seem to be heavy-handed, exaggerated versions of Microsoft's assummed arguments. There purpose is obviously not to help their case, and lately don't seem really to be attacks on Linux itself (since their arguments cover virtually any software, open or closed, ever written by anybody who read another piece of software). They really seemed to be designed to prove (without saying so) that Microsoft is funding them. Maybe this funding is an entire scam.

      Now this will require some inside help at Microsoft, somebody fooled them into making the original purchase of some useless licenses. If such a plot is figured out Microsoft should fire that guy's ass, and perhaps get him thrown in jail. A public action like this is the only way they are going to convince people they did not fund SCO.

      So why doesn't Microsoft deny that they are funding it? Because SCO has never literally said they are getting money from Microsoft, so there is nothing to deny. If Microsoft makes a denial without a real accusasion from SCO, then everybody will then say "obviously they are funding it, since they felt they had to deny it".

    9. Re:Well... by lamename · · Score: 2, Insightful

      I would like to see an investigation of the idiots who projected SCOX stock should go to $45 a share. In a sane world, it would be overvalued at $1 a share. With a PE well over 100 (it actually had a profit for a quarter to calculate), you might as well advise playing the lottery. If they lose this case, they are worth nothing. If they win this case, they are still a company that it the long run produces nothing of value but litigation. I don't see a bright future here.

    10. Re:Well... by Savagemutt · · Score: 2, Funny

      Well, a real lawyer would actually say "I am a lawyer, but the following should in no way be construed as actual legal advice. Laws vary from jurisdiction to jurisdiction so applicable legislation may vary from the example in this post."

      Thus, "IAALBTFSINWBCAALALVFJTKSALMVFTEITP".

      --
      I'm not a nerd. I'm just here for the free food.
    11. Re:Well... by ajensen · · Score: 2, Insightful
      Those are good points. Perhaps there has been no effect on the Free Software community as of yet, but what would happen if SCO is somehow able to prove that the GPL is invalid and not enforceable? That, I think, would be devastating -- both for projects and possibly for the spirit of the community.

      I really, really hope this gets settled in a decent fashion without getting any uglier.

      --a

    12. Re:Well... by fferreres · · Score: 4, Funny

      Oh, you mean IABNMIHAL.

      Ouch, some time ago I read the (old) thing where the letters that matter are the first and the last one, and the others can be mixed. I read a large paragraph that way. And now this? I inmediatly read:

      Oh, you mean IAMHANIBAL. :-(

      --
      unfinished: (adj.)
  2. Just like Poker by Quasar1999 · · Score: 5, Insightful

    This is just like poker... And IBM finally called... now SCO is gonna have to lay down the cards or fold... Either way... we all win! :)

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
    1. Re:Just like Poker by jon787 · · Score: 2, Interesting

      Lets just hope that SCO doesn't have a royal flush :)

      --
      X(7): A program for managing terminal windows. See also screen(1).
    2. Re:Just like Poker by Chyeburashka · · Score: 2, Funny

      Aces and Eights, the Dead Man's Hand.

    3. Re:Just like Poker by rmohr02 · · Score: 2, Interesting
      This is just like poker... And IBM finally called... now SCO is gonna have to lay down the cards or fold...
      Let's hope their hand is a king high.
    4. Re:Just like Poker by Feyr · · Score: 3, Funny

      well so far they don't even have a small pair. *shrugs* luck come, luck goes, but...

    5. Re:Just like Poker by Bruce+Perens · · Score: 4, Insightful
      If you look at the legal papers they've filed so far, it seems pretty clear that they have no "secret weapon". Even the judge seems to have thought so, and rather than wait for another attempt at discovery, scheduled the oral arguments.

      What we will get from this is not any more material from SCO, but material on what they have told others that can be used against them in the Lanham act case and subsequent cases against them.

      Bruce

    6. Re:Just like Poker by ThisIsFred · · Score: 4, Funny

      I would make a joke about McBride not playing with a full deck, but as far as I can tell, SCO didn't even have a pack of cards when it sat down at the table.

      --
      Fred

      "A fool and his freedom are soon parted"
      -RMS
    7. Re:Just like Poker by graxrmelg · · Score: 3, Informative

      Try looking under "shark":

      3. Slang. A person unusually skilled in a particular activity: a card shark.

    8. Re:Just like Poker by dipipanone · · Score: 4, Informative

      What is the Lanham Act anyway? I find two references to it at law.cornell.edu but the links don't point to the actual part of US law that they affect.

      I'm English and even *I* know what the Lanham Act is. (Or think I do, anyway.)

      The Lanham Act is a law that stops businesses unreasonably making allegations that interfere with a competitor's trade. I believe that it forms the basis of part of IBM's countersuit, and also of RedHat's action against SCO.

      *Googles to be sure*

      OK. It seems that while it's primarily about trademarks, I'm still right. You can find the whole thing here.

    9. Re:Just like Poker by Professor+D · · Score: 4, Funny
      Actually, it seems to me more like they have a hand of four cards in a game of five card stud.

      And two of them are from an Uno deck.

    10. Re:Just like Poker by sporadek · · Score: 2, Funny
      SCO claims to have provided IBM with 1 million pages of documentation in response to IBM's motion to compel discovery. I have read every single page. The first 999,999 pages said
      This page intentionally left blank.
      and then the last page said
      Ha ha ha ha ha!!
      I think IBM will win the case.
  3. I always wondered by Joe+Tie. · · Score: 2, Interesting

    If people involved with the legalities of this case were getting as frustrated with SCO as I've been. Nice to see that this seems to be the case.

    --
    Everything will be taken away from you.
  4. Follow the money by jaymzter · · Score: 4, Interesting

    At this stage of the game, IBM is publicly stating they doubt TSG is serious about entering a court room. With that in mind they seem to be trying to hurt TSG where it hurts: the wallet. Have you seen SCOX performance lately? Beautifully mimicking a swan dive. Good riddance to bad trash

    BTW, 5th post?

    --
    If thou see a fair woman pay court to her, for thus thou wilt obtain love
  5. SCO Gives Filenames by emacnabber · · Score: 5, Interesting

    This is a little OT, but SCO told the names "offending" files in a court doc at groklaw. They don't say what parts of the files are "theirs", but they've narrowed it down to about a 1/5 of the kernel. :-)

    1. Re:SCO Gives Filenames by darnok · · Score: 5, Interesting

      Is there something in the US legal system that actively prevents SCO from claiming every single file in the kernel as their own? I mean, if they're claiming a huge chunk of the kernel anyway, why not claim it all and be done with it?

      Presumably the court would have to investigate every single file to establish the veracity of SCO's claims. Can you imagine weeding through every single .h file, many of which are going to look identical on any Unix system, and trying to establish the one true inventor of the file? I'd bet the original creator of a lot of those files is lost in time.

      SCO would claim ownership, nobody could dispute it, and SCO could conceivably table some obscure document saying they created blah.h on some vaguely appropriate date. It doesn't have to be truthful - it can be manufactured just like all their other claims. If someone eventually comes forward and says "No, I created blah.h and here's proof", SCO would say "Fine, now let's look at blah2.h...".

      Meanwhile, time would pass & SCO execs would be that much closer to their bonus payouts for keeping the stock price going upwards.

      Other than the cost of doing things in this very long drawn out fashion, and I suspect SCO could find external funding for their legal costs from one or two sources in order to keep the anti-Linux FUD alive, is there anything in the US legal system preventing them from doing this?

      I'm thinking all SCO's execs need to do is waste the court's time until they've got their 4th quarter of stock price rises, then bail out with big final paycheques and leave the remaining investors with whatever's left.

    2. Re:SCO Gives Filenames by msgmonkey · · Score: 2, Interesting

      Not a lawyer etc, but if SCO claimed to own the complete file then the copyright owners could just take SCO to court and apply for an injuction to stop them claiming so until the court case. Of course this all requires money which little guy kernel developer (tm) does n't have.

      However, SCO are basically saying that these files contain lines that infringe in some way because IBM released some kind of "secrets" or copied code or whatever your imagination can come up with. IBM does n't know what SCO is going on about and asks them to give an exact list of what their complaint is; SCO replies "you know what infringes, you have to give us a list" and we go round in circles.

      It's not a strict copyright case as such but because the complaint is n't with the copyright owner(s) directly they can play this game kind of like a procedural loophole.

    3. Re:SCO Gives Filenames by Arker · · Score: 4, Interesting

      What I want to know is whether there's something in the US legal system that can stop SCO just stringing the court out ad infinitum with bogus ownership claims on file after file. All SCO's execs need is another couple of quarters and they win, regardless of what happens to SCO afterwards.

      As I understand it, for the moment that's up to the patience of the judge. Once plaintiff gets caught in a few lies the judges tend to get a bit short-tempered.

      Beyond that, though, the assumption in your original post that the authorship of this code is somehow murky is incorrect. It took mere hours from the time the examples they screened in Las Vegas became known to the time they were identified, and a couple more days to refine the identification at most. One example that came through SGI is public domain as a result of being derived from V32, the other (the one that TSG claimed as an example of obfuscation) was a reimplimentation from the Berkley spec, both cases are well documented. You can pull any file you want, select a section of code, and pretty quickly track down where it came from, what publically (or, in the case of SysV and the like, semi-publically) available codebases it's occurred in, plot a timeline of changes... the only thing that could really make this difficult is the sheer number of different sections one might wind up looking at.

      But judges, as I said, aren't known for limitless patience. Once SCO gets specific and advances some verifiable claims, and has them shot down in flames, the judge isn't going to simply let them go through that cycle ad infinitum. He's going to berate them for wasting his time, forward some transcripts to ethics committees and possibly other agencies, and turn his attention to the counterclaims. TSG knows this, and that's why they're dancing like crazy in these filings trying to deny that they ever made the claims they made, trying to avoid specifying any real claims that can be refuted.

      The jig is almost up for them. The US legal system may move slow, but it gets quicker when the judge starts suspecting someone is jerking him around, and that's what's happening. Oral arguments have been scheduled, a good sign he's already caught a whiff of what TSG has cooking and he doesn't like it.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
  6. COUNTERSUE!!! by aphor · · Score: 3, Insightful

    It is illegal and damaging to use the civil court system to intimidate people if you have no good reason to believe the law is behind you (like if you LIED about the facts used to support your complaint). A countersuit is in order, but who to sue?

    --
    --- Nothing clever here: move along now...
    1. Re:COUNTERSUE!!! by Codifex+Maximus · · Score: 2, Insightful

      > It is illegal and damaging to use the civil
      > court system to intimidate people

      I'll bet it is. I'll also wager, as well, that it is probably an infringement of securities law to use false statements to attract investors. Is an SEC investigation of SCO far behind the current litigation?

      --
      Codifex Maximus ~ In search of... a shorter sig.
    2. Re:COUNTERSUE!!! by gcaseye6677 · · Score: 2, Insightful

      SEC investigations tend to occur AFTER the pump and dump has been completed. In this case, the dump has not happened yet. Right now, the SEC would have a very weak case, but after the dust settles (and Darl rides off into the sunset), the facts will become obvious and, more importantly, provable in court. Darl had better find a country with no extradition treaty.

    3. Re:COUNTERSUE!!! by monkeyfinger · · Score: 2, Interesting

      With all this media attention focused on them it would be foolish for sco to pump and dump. If (as some people believe) they are getting backhanders from microsoft to rubbish linux then maybe that is financially rewarding enough and they don't need to resort to something as crude as pump and dump to fill their pockets.

    4. Re:COUNTERSUE!!! by red+floyd · · Score: 2, Informative

      I think you're talking about barratry. It's come up several times in slashdot discussions about the case.

      --
      The only reason we have the rights we have is that people just like us died to gain those rights. -- Cheerio Boy
    5. Re:COUNTERSUE!!! by Frymaster · · Score: 2, Insightful
      It is illegal and damaging to use the civil court system to intimidate people

      of course, the fear here is that subpeoning investors could be construed as "intimidating people" - ie, ibm intimidating current and potential investors in sco. really, who would want to invest serious coin in a company if they thought there was a good chance they'd get a subpeona from ibm?

      tread carefully here, big blue. you could be handing a legitimate complaint to santa cruz![1]

      1. sorry, "utah".

    6. Re:COUNTERSUE!!! by Glock27 · · Score: 2, Interesting
      of course, the fear here is that subpeoning investors could be construed as "intimidating people" - ie, ibm intimidating current and potential investors in sco. really, who would want to invest serious coin in a company if they thought there was a good chance they'd get a subpeona from ibm?

      A $3 billion lawsuit is more materially damaging than a perfectly legal subpoena.

      The subpoenas were a direct result of SCO's actions. If SCO is found to be at fault, IBM will certainly have no liability whatever. IANAL, but this seems the likely outcome to me at this point.

      --
      Galileo: "The Earth revolves around the Sun!"
      Score: -1 100% Flamebait
  7. Good Thing! by Delphinios · · Score: 4, Insightful

    Pretty cool, if you think about it.

    IBM, Big Blue, batting in Linux's court. This will likely be the case that stands as precedence for or against the GPL, and with such a giant behind Linux, I don't think SCO will win.

    If they had a chance, they would have pressed their fist into using the law to compel licensing, instead of sending "invoices" and pressuring companies to provide 'insurance' against their lawsuits.

    With the right leverage (such as the kind that IBM has) this could easially compel strong legal backing for the GPL, something it could definately use.

    1. Re:Good Thing! by sydlexic · · Score: 4, Insightful

      IBM, Big Blue, batting in Linux's court. This will likely be the case that stands as precedence for or against the GPL, and with such a giant behind Linux, I don't think SCO will win.

      You sound downright giddy at the prospect that a large company is going to prevail ... because it's large. As much as I hate SCO for the toilet licking scumbags they are, I want IBM to win on the MERITS of the case.

    2. Re:Good Thing! by NanoGator · · Score: 2

      "IBM, Big Blue, batting in Linux's court. This will likely be the case that stands as precedence for or against the GPL, and with such a giant behind Linux, I don't think SCO will win."

      Not that it detracts from your point here, but IBM's battling for its own interests. They just happen to coincide with what a lot of people want.

      --
      "Derp de derp."
    3. Re:Good Thing! by Delphinios · · Score: 2, Insightful

      I'll reply to all of these together. You're correct that IBM is doing it for it's own goals.

      But when the gestapo is after your rapist, you don't exactly hide him in the closet.

      Lesser of the two evils, eh? Might as well root for the one that has the same goal, if not for the same reason.

    4. Re:Good Thing! by Bingo+Foo · · Score: 2, Insightful

      Especially when one of their arguments (an apparent confusion of trademark with copyright) is that the GPL is invalid because it is only selectively enforced.

      --
      taken! (by Davidleeroth) Thanks Bingo Foo!
  8. Announcement by Rosco+P.+Coltrane · · Score: 5, Funny

    about IBM sending subpoenas to large SCO investors in an effort to compel discovery.

    In the recent wake of subpoena frenzy, we at subpoenaforless.com are pleased to announce a 20% discount on all our printed subpoenas, and 25% discount on rose-smelling quadrichromic printed 320g paper models. Up to 40% off all our models of subpoenas can be had if you puchase in volume. We have many satisfied customers and you could be one too.

    We're also working hard on the upcoming opening of our new online Internet portal, oneclicksubpoena.com. Be assure that we at subpoenaforless.com are committed to high quality, trouble free legal hassles.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  9. For a good read, click by overshoot · · Score: 5, Informative
    GrokLaw's posting of IBM's "Handy Guide to SCOX Legal Obfuscation," also known as "IBM Addendum to Memorandum in Support of IBM's 2nd Motion to Compel Discovery."

    Warning: put drinks and domestic animals safely out of danger first.

    --
    Lacking <sarcasm> tags, /. substitutes moderation as "Troll."
  10. Haha - great quote by Raul654 · · Score: 4, Funny

    "I view this as an attempt to bully and intimidate..." says Christopher Sontag, executive vice president at SCO.

    Oh, the irony.

    --


    To make laws that man cannot, and will not obey, serves to bring all law into contempt.
    --E.C. Stanton
    1. Re:Haha - great quote by mebon · · Score: 4, Funny
      I also like this part:

      Sontag says SCO has provided 1 million pages of documents to IBM and that IBM in return has provided only 100,000 pages to SCO. "The foot-dragging is on the part of IBM," he says.

      100,000 pages is dragging your feet??? I'm glad this guy wasn't my literature professor. "Next week please turn in your 1,000 page paper on 'To Kill a Mockingbird'. And it must be single spaced".

    2. Re:Haha - great quote by jjo · · Score: 5, Informative

      What's worse is that a large part of the 'million' pages that SCO produced were scanned printouts of UNIX source code. Rather than burning a source code CD or DVD and mailing it to IBM, they went to enormous efforts to furnish the data in the least useful format possible. They did this even though they acknowledged that IBM would need to perform computer analysis of the code itself.

      Oh, and though they had time to send the million pages to IBM, they didn't have the chance to include the code that they have been showing for months to financial analysts, columnists, and anyone who will sign an NDA. It must have slipped their minds.

    3. Re:Haha - great quote by JanneM · · Score: 5, Funny

      Well, you do a typical fifteen page paper in formal legalese and you'll likely end up with 1k pages or so...

      "The claimant of the first party, hereafter identified as Mrs. Lee, has a prior, wilful relationship with the claimant of the second party, hereafter identified as The Book, in that the claimant of the first party establishes the status of authorship on the claimant of the second party, a status that the claimant of the second party has yet to file a motion to dismiss. Within The Book, the claimant of the third party, referenced alternativel but equally as Scout and Miss Finch is described by the claimant of the first party as ..."

      --
      Trust the Computer. The Computer is your friend.
    4. Re:Haha - great quote by MrCreosote · · Score: 3, Funny

      Hey, you no fool me. Everyone knows there aint no sanity clause

      --
      MrCreosote Meow!Thump!Meow!Thump!Meow!Thump! "You're right! There isn't enough room to swing a cat in here!"
  11. This is about calling SCO's bluff about code by csoto · · Score: 5, Insightful

    SCO claims to have shown "the code" to investors and such. IBM says, "okay, SCO won't show us the code, so we'll make your investors do so." Both intimidates the investors and calls SCO's bluff. Brilliant!

    --
    There exists no way of exchanging information without making judgments. --Bene Gesserit Axiom
    1. Re:This is about calling SCO's bluff about code by idiotnot · · Score: 2, Interesting

      Even better, the confidentiality agreement between the people who've seen the code and SCO can be breeched in court. I'm sure DiDio never envisioned being called to the stand when she went on her publicity tour.

      But this knife cuts both ways -- OSS trolls like ESR could receive subpeonas from SCO in retailation.

    2. Re:This is about calling SCO's bluff about code by antiMStroll · · Score: 5, Interesting
      A better theory, IBM is cutting off SCO's funding by using SCO's tactics against them. SCO expended most of their energy so far badgering corporate Linux users with threats of IP transgression and 'offers' or ridiculously priced licenses. The obvious intent is to make corporate users think twice before adopting Linux.

      It's no coincidence that IBM's move came soon after the RBC and BayStar announcements. It's a warning to other potential investors, invest in SCO and endure the gaze of IBM's army of lawyers. With Worldcom and Enron still fresh in their memory, watch them blink first. Anyone care to bet on another anonymous mass purchase of SCO licenses?

    3. Re: This is about calling SCO's bluff about code by Black+Parrot · · Score: 2, Funny


      > But this knife cuts both ways -- OSS trolls like ESR could receive subpeonas from SCO in retailation.

      Who cares. He'll show up dressed like Darth Vader, everyone will giggle while the bouncers toss him out, and the trial will proceed as before.

      --
      Sheesh, evil *and* a jerk. -- Jade
    4. Re:This is about calling SCO's bluff about code by whoever57 · · Score: 2, Interesting

      Ahem, she did.

      Ahem, Not according to Salon
      Or, if you don't want to access the "premium" content, search for DiDio in this page

      --
      The real "Libtards" are the Libertarians!
    5. Re:This is about calling SCO's bluff about code by InfoVore · · Score: 3, Interesting

      It's a warning to other potential investors, invest in SCO and endure the gaze of IBM's army of lawyers.

      I like it. Call it the "IBM Basilisk Effect" - watch your potential investors turn into stone when IBM lawyers look at them.

      --
      "These laws they're passing won't even compile anymore, let alone execute." - anon
  12. Laziness! by bersl2 · · Score: 5, Informative

    Geez, how lazy are you people? Just check the box next to "Caldera."

  13. Re:News? by Wakkow · · Score: 2, Redundant

    Remove the Caldera section in your preferences for the front page.. That should cut down the SCO articles a bit. Or, you know.. just not read them?

  14. Direct all findings to the SEC ? by Jesrad · · Score: 2, Interesting

    I certainly hope they find documents that prove that Darl &Co. just went into this madness for quick money, using an illegal pump and dump scheme. It'll make the SEC's job much easier.

    --
    Maybe we deserve this world ?
  15. "Enthusiast"? by John+Hasler · · Score: 5, Funny

    Let's start referring to www.forbes.com as a "stock-market enthusiast Web site".

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  16. The beginning of the end by Anonymous Coward · · Score: 3, Informative

    For the stock.

  17. Re:It's About time by SpaceLifeForm · · Score: 4, Insightful
    No. You don't want it laughed out of court.

    You want this to be properly resolved. We don't need any more of the bullshit coming from the courts where it's decided that the case is not strong enough to set a precedent, so it's dropped instead of getting resolved. Then they wait until another situation comes up that is more favorable. The future of freedom can not wait.

    --
    You are being MICROattacked, from various angles, in a SOFT manner.
  18. Re:Well... (Is Microsoft a SCO Investor?) by pstreck · · Score: 2, Insightful

    Is Microsoft a SCO Investor? I thought they just paid for licenses, that would make them a customer not an investor.

    --

    Later,
    Phil
  19. Finally... by bigjnsa500 · · Score: 2, Interesting
    Finally IBM is coming into this. Thank you IBM. Especially for your killer new Linux commercial.

    --
    This is a test. This is a test of the emergency sig system. This has been only a test.
  20. Sontag wants IBM to send him more paper? by Drishmung · · Score: 5, Funny
    Sontag says SCO has provided 1 million pages of documents to IBM and that IBM in return has provided only 100,000 pages to SCO. "The foot-dragging is on the part of IBM," he says.

    The mind boggles! Sontag is asking IBM to deluge him in paper? He only has 100,000 pages, and he wants IBM to see his million and raise it!

    Groan, somewhere, a forest cries in pain as the log chippers are fired up.

    Do not start a land war in Asia, do not enter a paper war with IBM. Sheesh!

    --
    Protoplasm. Quiet Protoplasm. I like quiet protoplasm.
    1. Re:Sontag wants IBM to send him more paper? by dbIII · · Score: 2, Funny
      Sontag is asking IBM to deluge him in paper?
      Send SCO a few million sheets of soft and strong 100% recycled paper in convenient rolls. With what they have been saying they will need a bit of it.
    2. Re:Sontag wants IBM to send him more paper? by NaugaHunter · · Score: 4, Funny

      Do not start a land war in Asia, do not enter a paper war with IBM. Sheesh!

      Or:
      SCO: Don't get involved in a lawsuit with SCO, when intellectual property is on line! Aha-ha-ha-ha! Aha-ha-h- [CLUNK]
      The Press: And to think, all that time it was SCO with the infringing code.
      IBM: They both had the same code. I built up an immunity to lawsuits over it by following the GPL.

      --
      R: That voice. Where have I heard that voice before? B: In about 365 other episodes. But I don't know who it is either.
  21. Re:Didn't Microsoft and IBM just get in bed? by plierhead · · Score: 5, Insightful
    I thought Microsoft and IBM just signed a huge Xbox 2 chip deal? Maybe I am too idealistic and the proper way to act is to sue your business partners. Maybe thats why I don't own a big company :)

    Big companies like IBM, Microsoft, et al don't act in a single-minded way like we individuals tend to. You can't run a big company with a "you're my enemy so I won't do business with you" mentality.

    There are many, many examples where IBM competes or cooperates with Microsoft and others. An even more extreme example is Sony, where, one half of the business is frantically taking on file swappers and copiers, and the other half is making bucks from selling devices used to copy and swap files.

    --

    [x] auto-moderate all posts by this user as insightful

  22. But by Raul654 · · Score: 4, Interesting

    The idea here is to do to SCO what they are trying to do to the OS movement - make the public afraid to touch them. I mean, if buying SCO stock means you risk getting a subpeana, who is going to do it? So what if ESR gets one - I'm sure he'd be happy to give SCO a piece of his mind. The goal is to make your average wall streeter afraid to touch SCO with a 10 foot pole, and there's not a whole lot SCO can do that they haven't already done.

    --


    To make laws that man cannot, and will not obey, serves to bring all law into contempt.
    --E.C. Stanton
    1. Re:But by idiotnot · · Score: 2, Interesting

      The thing is....the runup on the SCO stock is clearly because of hype and its scarcity in the market. As they mention in the article, Canopy is the biggest shareholder, and they're not doing alot of buying and selling. Their other big shareholders are Wall Street stars like the Whitney Holding Group (Russ Whitney....you've probably seen his "You can get rich buying and selling real estate!" infomercials late at night). Put another way, there are alot of people who'd love to sell the stock short, but there's not enough of it out there to do that.

      And ESR on the stand isn't going to do anyone any favors -- remember, a hostile subpeonead witness, the plaintiff's attorney can ask leading questions requiring only "yes" and "no" answers. The witness can't expound more during cross, because cross is limited to what was discussed during direct.

      As I tried to imply above, IBM is going to try to pin SCO in a lie, and use whatever they disclosed to these "neutral" observers against them. This is especially true if they subpeona exact line numbers and files (as they've done in the interrogatories) and show that this PR campaign was done using, say, ancient BSD code, which would be in both the Linux kernel and the SysV kernel.

  23. Re:It's About time by John+Hasler · · Score: 4, Insightful

    No. We don't want SCO "laughed out of court". We don't want them out of court at all. We want them _in_ court, unsuccessfully defending themselves against IBM's counterclaims after the judge grants summary judgement in favor of IBM on all of SCO's claims.

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  24. Re:In case we kill Forbes by dtperik · · Score: 5, Funny

    Sontag says SCO has provided 1 million pages of documents

    I don't think he realizes that press releases don't count.

  25. Well you see, the problem was... by SuperKendall · · Score: 4, Funny

    ... that all of IBM's 100,000 pages so far all said:

    "This page intentionally left blank."

    Of course, all of SCO's 1M pages were diagrams of kittens and houses in crayon so they can hardly complain.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Well you see, the problem was... by Joe+Tie. · · Score: 2, Funny

      Of course, all of SCO's 1M pages were diagrams of kittens and houses in crayon so they can hardly complain.

      After they're brought to court it will also be revealed that they drew a stick figure sco representitive holding a gun to the kitten and a match to the house.

      --
      Everything will be taken away from you.
  26. Re:Didn't Microsoft and IBM just get in bed? by Prof.Nimnul · · Score: 2, Informative
    Actually, this would not be odd at all for large companies. It's basically the left hand not knowing what the right is doing, even in such a blatant fashion.

    Best example is Sony, who has wound up suing itself a couple of times. I don't remember the exact article, but it detailed the problems facing the company since its technology arm was often at odds with its entertainment/content distribution arm. Time Warner, I bet, has run into the same problems with AOL under their belts.

    Even in "smaller" companies this kind of stuff happens. My company works with car dealerships and manufacturers like Ford, GM, etc. We sell a lot of products and services to the Big Car Companies, but in one strange twist, once we wound up joining a class-action lawsuit with our direct competitors suing our customers over a certain program (basically the case is that the car companies aren't sharing the required information so their dealers won't be able to switch from their own systems -- I believe it was settled out of court). But even so, it never really affected relationships with the car companies or anyone else. It's this odd bit of business life that sometimes you can sue your best friend and help your most bitter enemy, but relationships with those people don't change as a result of the actions.

    Forget String Theory and Quantum Mechanics; the business world is really where the bizarre happens.

    Matt

  27. Re:Didn't Microsoft and IBM just get in bed? by Soko · · Score: 2, Funny

    Business Diplomacy. As someone's .sig here on /. so aptly puts it:

    "Diplomacy is the art of saying "Nice doggie" until you can find a rock." - Will Rogers

    Soko

    --
    "Depression is merely anger without enthusiasm." - Anonymous
  28. Now it gets interesting by theolein · · Score: 4, Insightful

    I don't think that Microsoft is directly behind this action, but I sure as hell wouldn't put it past them to do so. They've done some pretty weird stuff in the past such as the famous dead people mailing initiative and their famous round of hideous anti-linux FUD in 2001 where Ballmer, Mundie and just about every honcho at MS were telling strange tales of viral cancer etc.

    Given that they discovered that such direct FUD backfired but are reportedly gearing up for the next round of FUD with respect to security would you be willing to state with 100% certainty that MS is not behind this action?

    I wouldn't.

    If it is discovered through IBM's process of subpoenas that MS is in fact behind this I wonder what will happen then. I assume that MS will be facing a court action for trying to willfully harm a competitor's business that will make the $3 billion SCO claim look tame, and I think that there will be a number of anti-trust questions raised.

    1. Re:Now it gets interesting by SmallFurryCreature · · Score: 2, Interesting
      mmm, that case was the public against a company. The public has of course no case they should be in jail anyway for being scrufy and not paying enough bribes oops sorry campaign donations.

      Not that this will happen but lets say it did.

      This is big company against big company. Think godzilla vs king kong. This is going to be enjoyable to watch. From a safe distance. Anyone know when the first shuttles leaves for mars?

      --

      MMO Quests are like orgasms:

      You may solo them, I prefer them in a group.

  29. There are words for this by MarkusQ · · Score: 4, Interesting

    Big companies like IBM, Microsoft, et al don't act in a single-minded way like we individuals tend to.

    That's because when individuals act the way big companies do, we call them things like "nut cases" and "psycopaths." An individual that dumped toxic waste into a river or FUD into the media (at what would be a modest rate by corporate standards) would be locked up. An individual who was insulting someone while kissing up to them would seem (at best) socialy maladroit.

    This is what makes corporate characterization of hackers as social outcasts so ironic. The most nerdly hacker is still an order of magnitude more sane & sociable than the average mega-corp.

    -- MarkusQ

  30. Real knee-slapper by overshoot · · Score: 2, Interesting
    Sontag says SCO has provided 1 million pages of documents to IBM and that IBM in return has provided only 100,000 pages to SCO. "The foot-dragging is on the part of IBM," he says.

    Where was the freaking C&C warning?

    Look, Chris baby, let's put this kindly: it was SCO who replied to a request for source code (requested for code comparison purposes) who printed it out, then scanned it, then PDFed the scanned image, then shipped the PDF. I'm sure that trick was the basis for endless merriment in Lindon, with backslapping and congratulations all around.

    You'll allow me, I hope, to quietly contemplate the prospect of the Court ordering SCO to pay for manual transcription and proofreading of all 150,000 pages?

    --
    Lacking <sarcasm> tags, /. substitutes moderation as "Troll."
    1. Re:Real knee-slapper by ThisIsFred · · Score: 2, Funny

      Jesus...

      D:!

      I knew they were bastards, but this is just plain evil! Dealing with SCO is like dealing with the Wishmaster.

      IBM: Genie, show us the infringing source code!

      McBride: As you wish. (grins menacingly)

      --> Cut to scene where terrified IBM attorneys are locked in a room as tons of CDRs containing PDF files with millions of pages of worthless bitmaps of scanned source code fall from nowhere, and crush them.

      --
      Fred

      "A fool and his freedom are soon parted"
      -RMS
  31. IBM readies first nuclear bomb by El · · Score: 3, Interesting
    "IBM needs to get answers from analysts about why they wrote positive reports and from Baystar about why they invested," Ferguson says.

    Why would IBM need that information, unless they intended to go after somebody for securities fraud?

    --

    "Freedom means freedom for everybody" -- Dick Cheney

  32. Bovine Rhetoric by jimbolaya · · Score: 3, Funny
    "I view this as an attempt to bully and intimidate analysts--to try to cow them into silence"

    Oh, Chris, you words always have been so moooooooving.

    --

    There ain't no rules here; we're trying to accomplish something.

  33. Huh? by Bruce+Perens · · Score: 3, Interesting
    Cuts both ways? Is that just vapors or do you have a reason to say so?

    I don't see why Eric wouldn't want to testify. I'd like to. I sure don't have anything to hide with regard to this case, and I can't see how he would.

    Bruce

    1. Re:Huh? by dmaxwell · · Score: 3, Insightful

      They would take things you and ESR said out of context and make you answer yes-or-no questions in such a way that you come off like a file sharing pirate who says "arrrrrrr" all the time. They will basically assassinate your character any way they can....and sharp lawyering would likely stop you from doing anything about it. They are using the legal system to further a smear campaign.

  34. Since no one else pointed it out by DaveAtFraud · · Score: 4, Interesting

    The author of this piece, Daniel Lyons, should use the by line, "SCO Mouthpiece." He is the same hack who wrote the "Linux's Hit Men" article about the FSF plus there was another recent piece of SCO FUD that I've managed to flush out of my memory.

    You will also note that quietly buried in the body of the article is that Forbes was also served with a subpoena. This is undoubtedly because of Mr. Lyons' articles.

    --
    They that can give up essential liberty to obtain a little temporary safety deserve neither safety nor liberty.
    Ben
    1. Re:Since no one else pointed it out by DaveAtFraud · · Score: 2, Interesting

      Other than the "B.S." comment you seem to be agreeing with me so I'm confused. You may not realize that most news organizations consider being hit with a subpoena (even in a civil case) to be a major affront to their first ammendment rights (it isn't in a civil suit but they like to pretend it is). Only someone with something to hide would bury the news that they too had been served with a subpoena on the very subject of the article most of the way down the article and then only provide a single sentence.

      If you want to call "B.S.", I suggest you call it on Forbes. They are pretending to be unbiased when they are coming really close to becoming a party to the suit. Things could get really interesting if Laura Dingbat, sorry DiDio, and people like Daniel Lyons actually have to testify to what SCO showed them.

      --
      They that can give up essential liberty to obtain a little temporary safety deserve neither safety nor liberty.
      Ben
    2. Re:Since no one else pointed it out by Jayfar · · Score: 2, Insightful

      "If you want to call "B.S.", I suggest you call it on Forbes."

      Er, the article says "subpoena provided to Forbes," *NOT* served on Forbes. In other words some other party let a Forbes reporter have a looksee at a subpoena.

    3. Re:Since no one else pointed it out by LarsWestergren · · Score: 2, Funny

      The author of this piece, Daniel Lyons, should use the by line, "SCO Mouthpiece." He is the same hack who wrote the "Linux's Hit Men" article about the FSF plus there was another recent piece of SCO FUD that I've managed to flush out of my memory.

      He is actually a nice guy once you get to know him. He just has a problem being impartial when it comes to Linux because... well, you see, a penguin once seduced him and then broke his heart. It's a sad story really.

      --

      Being bitter is drinking poison and hoping someone else will die

  35. Re:Aces and Eights by NortWind · · Score: 3, Interesting

    They say it was the hand that Wild Bill Hickock was holding when he was shot in the back of the head.

  36. I wondered if this would happen by swillden · · Score: 5, Insightful

    From SCO's supplemental responses:

    IBM has unfairly competed with SCO by... entering a conspiracy... with others in the Linux development and distribution business... to artificially restrain prices below natural levels for the purposes of destroying competition in the operating systems market for UNIX software on Intel machines. ... By artificially restraining the price of Linux to zero, which price is very substantially below the actual development cost contributed by IBM and others, IBM induces customers to switch to Linux. This is, among other things, unfair competition.

    I've been wondering when someone was going to try this for quite a while. "Dumping", selling a product below cost in order to force your competitors out of business, is illegal for good reasons. It seems like a motivated attorney could pretty easily make a case that any company who is putting substantial investment into software that is distributed for free is dumping, and trying to kill a competitor.

    This doesn't just apply to IBM and Linux, it also applies to Sun and OpenOffice, and perhaps others as well. Now it looks like SCO is trying this argument out for real.

    I had hoped the argument wouldn't get brought up for a while, until a history of such corporate open source efforts was well established. And it seemed reasonable that it might not be brought up, since the "damaged" party in both the Linux and OpenOffice cases is Microsoft, and as a convicted anti-competitive monopolist with a massive market share they're not in a very good position to complain.

    It seems like Microsoft has found a way to get the idea in front of a judge after all...

    --
    Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    1. Re:I wondered if this would happen by Raffaello · · Score: 4, Insightful

      There might be some companies out there that would want this idea to be scrutinized closely in court, but Microsoft would not be likely to be among them.

      Remember that Microsoft has a long history of what you refer to as "software dumping." Internet Explorer anyone? How much have MS users paid for that piece of software, which must have cost MS millions to develop. Clearly, MS have been dumping their web browser below cost! It was, for years, a separate, free download, in an era when MS was struggling mightily to catch up to then leader, Netscape.

      So, no, I don't think Microsoft really want the courts to rule that giving away software is de facto unfair competition. It would take a weapon from Microsoft's arsenal that they have used to excellent effect in the past.

  37. There's really only one thing to say... by FFFish · · Score: 2, Funny


    "Tee. Hee."

    --

    --
    Don't like it? Respond with words, not karma.
  38. Re:It's About time by KD5YPT · · Score: 5, Insightful

    I think the precedent is the fact that SCO claims GPL is not enforceable. If the court agreed that GPL is a legal license, that will make any challenge in the future against GPL hard or impossible. Which gives open source softwares some legal backings.

    --
    In US, you can easily buy enough major firearms to wipe out your neighbourhood but a few little fireworks are banned.
  39. Excuse me, would you mind incriminating yourself? by quinkin · · Score: 3, Funny
    Excuse me, would you mind incriminating yourself?

    I guess you just have to ask politely enough...

    Q.

    --
    Insert Signature Here
  40. Mind the hypocrisy, though by jtheory · · Score: 2, Insightful

    I totally agree that it's cool that Linux is heading to court with a pretty strong case (though I don't think GPL legal precedence will come into SCO's suit at all. SCO is saying that IBM stole their IP; they don't care how IBM released it; they're saying that it wasn't IBM's IP to release in *any* way. Some of the countersuits involve GPL, though).

    I have to say I wouldn't celebrate much, though, if IBM won the case because they are "such a giant" with "the right leverage". If SCO's suit is valid, IBM should pay some kind of damages, and offending versions of Linux must be discontinued. Yes, the system doesn't always work right, but law is law and the little guy should win if the case has merit, whether he's hated or cheered for it. If the law is bad, then we have to work to change it.

    If I cheer because IBM is huge, I lose the right to complain when MS squashes some small developer under the weight of a thousand lawyers.

    Final thought: the elephant is walking the same direction as you for now -- but don't get confused and think you're riding it.

    --
    There are only 10 types of people: those who understand decimal, those who don't, and, uh, 8 other types I forget.
  41. Hello, gentlemen by Compact+Dick · · Score: 5, Funny

    I would like to purchase one (1) subpoena against oneclicksubpoena.com with regard to violation of US Patent# 5,960,411.

    Sincerely,
    amazon.com

  42. "I view this as an attempt to bully and..." by stephanruby · · Score: 2, Insightful
    "I view this as an attempt to bully and intimidate analysts--to try to cow them into silence," says Christopher Sontag, executive vice president at SCO, in Lindon, Utah.

    I wonder what his views are on sending threatening letters to thousands of companies demanding licensing fees without offering a shred of evidence supporting its claims.

  43. The true meaning of "subpoena" by Frequency+Domain · · Score: 2, Funny

    From the Latin roots sub, for below, and poena, for male member. In other words, by the balls.

    1. Re:The true meaning of "subpoena" by jpmorgan · · Score: 2, Informative

      Uh, poena means punishment, not penis.

  44. I have the SCO kernel files... by herrvinny · · Score: 2, Interesting

    You folks are going to have to help me, because I'm a Linux newbie, but just before SCO shut down the ftp site, I downloaded the SCO linux kernel files (at least, I'm guessing that's what they are; I downloaded all the files starting with kernel-source[stuff here].rpm, which was 10 files, roughly 123 MB.) Would SCO object if I posted the files for download? Is it illegal? I'm betting not, since they were still licensed under the GPL when I downloaded them. So, if these are the real kernel files, and SCO would be pissed at them being posted freely, and it's not illegal under the DMCA or something, yeah, I'm going to post all the files. Can anyone tell me if these files would be useful to anyone, most of all IBM?

  45. Subpoenas for what? by PMuse · · Score: 2, Interesting

    A subpoena usually asks for (a) some one to show up and testify or (b) a bunch of documents. These sound like the document kind.

    So, anybody know what documents IBM asked these investors/analysts for?

    --
    "We reject as false the choice between our safety and our ideals." --The American President (20.1.2009)
  46. Re:It's About time by Geek+of+Tech · · Score: 4, Interesting
    Don't they realize that doing this is suicide? If they were to determine that the GPL is enforcable, SCO just shot themselves in the foot. It they decide that the GPL is not enforcable, every kernel contributor, even everyone who has worked on a package that has appeared in Caldera or SCO Linux could sue SCO. In just a few weeks, they could bankrupt the company.

    --
    Stop the Slashdot effect! Don't read the articles!
  47. IBM's options at this point by Animats · · Score: 4, Interesting
    The Cravath machine is starting to roll.

    First, if SCO stalls much longer on discovery, Cravath will be in a good position to move for a dismissal. They might get it, too. Maybe even a dismissal with prejudice, so SCO can't refile, or summary judgement in IBM's favor.

    Independent of this, it looks like IBM is gearing up for a securities-fraud counterclaim. Cravath has pointed out in legal filings that SCO has made statements publicly that are inconsistent with the positions they take in court. Ordinarily, that's OK. But when the stock price spikes and insiders are cashing out, that's not OK.

    There's also the potential of a false-claim-of-copyright claim. That's rarely used, but here, it's clearly appropriate.

    This is going to crank for a while, but unless SCO comes up with something a lot better than what they've shown so far, they're not going to win.

  48. Ignore parent by aws4y · · Score: 4, Interesting

    Sorry hit submit instead of preview, I got flustered and the buttons are so close together.

    Some of thoes files don't contain any UNIX System V source code, only "UNIX methods" which is a vague way of saying that it may have appeared in a textbook. That is why IBM feels that simply giving filenames is insuffecent since even if there is not one pice of SysV code in thoes files SCO can still claim that some of the algorithims are similar to thoes in SysV and thus there is still a copyright violation, even though these alogrithims are taught to students in classes and SCO dosent have a patent on them.

    The last point is the major weakness in SCO's case and why Novell can now just flick them away like the tiny fly that they are.

    --
    Did Glenn Beck rape and kill a girl in 1990? gb1990.com
  49. "Not pump n' dump" = bs!!! by Mudcathi · · Score: 2, Informative

    From the article: "Meanwhile, Linux enthusiast Web sites and blogs are buzzing with theories. One is that SCO knows its case is groundless and has been using the lawsuit to perpetrate a massive "pump and dump" securities fraud, and now IBM is talking to Baystar and Renaissance to find out what they were told. (SCO says the "pump and dump" theories are nonsense and that Sontag, along with Darl McBride, CEO, have not sold a single share. Some executives have sold shares but only small amounts and mostly "to cover tax consequences on restricted stock," Sontag says.)"

    But records at http://finance.yahoo.com/q/it?s=SCOX show that all 25 insider transactions for the past 6 months have been sales of stock --- get this, not a single buy!

    --

    "He who throws mud, loses ground." - proverb

  50. Executive Suicide by Artifakt · · Score: 3, Funny

    This is just a hunch, mind you, the sort of thing you feel like you know without knowing how you know it, but reading this newest SCO thread, I got a strong premonition that this case has reached the stage where, by the time it is all over, some people connected are going to be dead, by what at least looks like suicide. If I'm right, you can call me psychic, or say it was a subconsious awareness of similarities between this case and Worldcon and other previous ones, but I'm willing to go on record with the prediction either way. (And If I AM right, I'm gonna claim first post to the thread that will doubtless result).

    --
    Who is John Cabal?
  51. Dumping is Good by Bob9113 · · Score: 3, Interesting

    I've been wondering when someone was going to try this for quite a while. "Dumping", selling a product below cost in order to force your competitors out of business, is illegal for good reasons.

    I'm not sure whether it's illegal or not (as so many of our economics-related laws are irrational), but if it is, it is most definitely not illegal for good reason. Economists tend to get hot under the collar whenever their government engages in the economically self-destructive practice of protectionism under the spectre of dumping. Any first year economics student can explain precisely why dumping is good for the economy that is being dumped into in essentially every real world situation[1]. Any Linux enthusiast can as easily explain why the same is true of operating systems[2].

    Consider the example of Netscape - Microsoft has spent nearly ten years attempting to dump it out of existence. Microsoft's price for IE remains at zero (not to mention their correlary anti-competitive attacks), and still Netscape lives on (and a host of other browsers, including ones with non-zero prices have poppoed up). And that's just looking at the browser producers - the rest of the world, the browser consumers, like 99.99% of the population and a similar percentage of businesses, are ECSTATIC about the browser wars. How different would the world today be if Netscape, Opera, Mozilla, Konquerer, and IE all cost $99, and had never been free?

    [1] DUMPING

    Selling something for less than the cost of producing it. This may be used by a DOMINANT FIRM to attack rivals, a strategy known to ANTITRUST authorities as PREDATORY PRICING. Participants in international trade are often accused of dumping by domestic FIRMS charging more than rival IMPORTS. Countries can slap duties on cheap imports that they judge are being dumped in their markets. Often this amounts to thinly disguised PROTECTIONISM against more efficient foreign firms.

    In practice, genuine predatory pricing is rare - certainly much rarer than anti-dumping actions - because it relies on the unlikely ability of a single producer to dominate a world market. In any case, consumers gain from lower PRICES; so do companies that can buy their supplies more cheaply abroad.


    That is - unless IBM's Linux division has a maintainable monopoly on the OS market (it does not), and the ability to raise its price (it does not), and the ability to drive its competition out (OK, guilty), and there are significant barriers to reentry to the OS market (there are none), claiming dumping is specious at best.

    [2] Having the ability to run a variety of operating systems without having to pay for each license makes it easier for the user to satisfy his or her wants. On the business side, a vastly greater number of businesses are OS consumers than are OS producers - thus the business world as a whole *LOVES* OS dumping (if it can be called that).

  52. Proprietary Software Corps are not afrais of OSS by spitzak · · Score: 2, Insightful
    Except for Microsoft. For everybody else (the few that are left) OSS is a huge opportunity to sell software again, and get out of the constant fear of Microsoft crushing them by making a bundled replacement, and maybe return to the giddy days of the early 1980's.

    Even on Slashdot most people do not belive that OSS will replace commercial software like Quicken or Autocad or Maya, the interior design software, the games, the commercial business-specific software loaded with catalogs of suppliers products. Even word processors are not replaced, sure OSS can write a Word-clone, but Word is stagnent due to lack of competition, if Word was crushed and the stifling need to import and export Word documents eliminated, new word processors may appear that have capabilites nobody has even dreamed of! The free OSS Word-clone you get with your Linux box would be considered a joke in comparison, so would Word.

    If Linux (or something like it) is triumphant I think there will be a huge release of amazingly innovative new applications and software. And variations and additions to Linux itself. These will be things that cannot even be imagined by OSS and Microsoft programmers right now, because they will be the inventions of a competitive commercial marketplace and hundreds of thousands of developers (verses the perhaps 10 thousands of Linux developers, and the only thousands of Microsoft developers). This new stuff will make Windows and Longhorn, KDE and Gnome, and even OS/X look like a primitive joke!

    If you are a commercial proprietary software company and not tied into supplying Microsoft, you are eagerly awaiting the arrival of Linux!

  53. Re:It's About time by ces · · Score: 2, Informative

    So you would bow at the alter of IBM hoping that IBM agrees with your interpretation of the GPL? IBM could present a defense that leads the court to interpret the GPL in a manner far different than you would like.

    Huh? IBM trying to get the GPL interpreted differently than is commonly understood? What planet are you on?

    Go read the IBM countersuit and related filings over at Groklaw. IBM is claiming that SCO is not abiding by the terms of the distribution license for the linux kernel as set forth in the GPL, therefore SCO is infringing on IBM's copyright. Pretty much textbook as to how the FSF would like to see the GPL defended.

    --
    Happy Fun Ball is for external use only.
  54. Re:It's About time by ces · · Score: 4, Insightful

    SCO's lawsuit against IBM is over a breach of contract. It doesn't mention the GPL at all. However, IBM's countersuit does bring up the GPL several times. SCO's lawsuit can be laughed out of court without affecting IBM's countersuit. From what I've heard, IBM would like a court ruling backing the GPL as much as the rest of the open source community. The chances of IBM dropping their countersuit is really small. If IBM is sending subpoenas to investors, then it sounds like IBM would like to make an example out of SCO and everyone that has helped them.

    SCO made the mistake of attacking something very core to IBM's business, its reputation.

    By claiming that IBM willfully and flagrantly breached its contracts with SCO and disregarded confidentiality agreements, SCO is jeprodizing IBM's business with almost every one of their customers including banks, government, and nearly every large corporation.

    --
    Happy Fun Ball is for external use only.
  55. MSN MoneyCentral by jhoude · · Score: 2, Informative

    According to MSN MoneyCentral's StockScouter :
    The SCO Group, Inc., a small-cap growth company in the technology sector, is expected to significantly underperform the market over the next six months with very high risk.
    With a rating of 1/10...

  56. Might there be a contingency for MS to buyout SCO by wytcld · · Score: 2, Interesting

    What if there were an understanding that if by a certain date IBM hasn't either settled or acquired SCO, Microsoft will acquire SCO? That way the major SCO stockholders have a floor on the stock price, the SCO lawyers have a guaranteed payout based on their contract clause giving them a percent of any buyout price, and Microsoft has very little money upfront where it might embarass them, aside from the licensing fees they've already fronted.

    Companies negotiate possible acquisitions all the time, and much of it is done very quietly. The only requirement for disclosure I'm aware of is when one entity actually acquires more than 5% of another's stock. Is there anything else that would prevent a gentlemen's agreement along these lines from being in place? After all, Microsoft is in a good position to argue that SCO has assets uniquely valuable to Microsoft's business, and thus that whatever price it ends up paying is justified - so it will be damn hard to prove the price was really payoff for the IBM/Linux attack.

    --
    "with their freedom lost all virtue lose" - Milton
  57. Enough by salesgeek · · Score: 2

    This case kills me. It comes down to three issues:

    * Does Linux infringe SCO's copyright?

    * Did IBM violate their Unix License?
    * If so, did IBM harm SCO by doing so?

    Frankly, if SCO had a case, they would show the code, show the infringement, then show the contract, show the proof IBM violated it, followed by showing the effect IBM's actions had on their business. Fact is SCO cannot proove any of it for these reasons:

    * Linux is not an infringement (less than 1% simmilar code)

    * IBM did NOT break their Unix agreement and even if they did:

    * SCO is responsible for their own situation. FreeBSD and Linux long ago eclipsed SCO Unix in the x86 marketplace because of price/function/value. There's little reason to buy SCO product other than fear they will sue you for not buying their own product.

    IBM's move is an endgame and I'm happy to see it.

    --
    -- $G
  58. Of course Microsoft is funding it by roystgnr · · Score: 2, Interesting

    They can't deny that, because over 8 million of the funding (which purchased unspecified SCO "licensing" that they suddenly needed for some reason) is a matter of public record, in their own press releases and in SCO's SEC filings. The only thing the conspiracy theorists are speculating about is whether some of the BayStar or RBC money is laundered Microsoft cash as well.

  59. Congressman Barney Frank (D Mass.) on SCO suit by hqm · · Score: 5, Interesting

    When SCO was going around threatening end users, I sent a letter to my congressman, Barney Frank of Massachusetts. Here is his response:

    ====

    September 26, 2003

    Dear Mr. Minsky,

    I share your view that the suits being brought by the SCO Group
    against the users of the Linux system are an entirely inappropriate
    use of the legal systems for broader corporate purposes. While I have
    note been able, obviously, to examine these in detail, the suits do
    not appear to me, from what I have read, to have any merit, and in
    fact seem to be motivated, as I said, by an effort simply to prevent
    the use of Linux for competitive reasons.

    There is, unfortunately, a very limited role for Congress here. I
    agree with those who would like to see us "stop SCO from punishing
    innocent consumers to inflate its other legal claims." But under our
    separation of powers doctrine, Congress has no role whatsoever to play
    in the pursuit of particular cases. We can pass laws which prevent
    certain types of suits from being brought, but it is very, very
    difficult to pass those in a way that would be retroactive - that is,
    that would apply to existing suits. And the problem with this suit is
    not that it is of a sort of legal claim that is inappropriate to
    bring, but that it is totally unjustified on the merits. In other
    words, the remedy here is for these suits to be dismissed on their
    merits and Congress has no role, as I have said, in doing that.

    I am prepared to join in expressions of extreme disapproval of what
    SCO is doing, and I will be consulting with my colleagues to see if
    there is a movement to do that. I hope that will have some impact on
    them. All of these lawsuits brought against individuals will of course
    be dismissed but I realize that is of little consolation to people
    who have had to go through the trouble and expense of defending against
    them. It may be that at some point a judge will act decisively enough
    in this regard to prevent this proliferation of suits, and while, as I
    said, our Congressional role is very limited here, I will be
    encouraging anything we can do along these lines.

    Barney Frank

  60. Re:Congressman Barney Frank (D Mass.) on SCO suit by circusnews · · Score: 4, Insightful

    Many readers (like the two reading over my shoulder) are taking this as a cop-out on Barny Franks part. I for one really wish more of our elected leaders understood the seperation of powers. If they did, we would have far fewer problems with the law than we do today.

  61. Don't write off conspiracies just yet by siskbc · · Score: 4, Insightful
    Contrary to the slashbots, I think it's highly unlikely that this market manipulation is SCO, Canopy, Microsoft, Sun or anyone else. It's probably just independant brokers who know a goldrush when they see one. Just like VA Linux, etc.

    I definitely understand the tendency to ignore all the paranoid ravings you hear on /., because I do too. That said, there are some legit reasons to give this one consideration. First, Forbes is typically quite the conservative mag, and I doubt they'd even have printed that had it not passed the laugh test to outsiders. Second, this scheme is simliar to what canopy has done before by Canopy. I'm generally skeptical, and I will bank on this being a pump-n-dump or similar scheme by SCO/Canopy. This is their MO.

    The Microsoft angle is more farfetched, but not completely implausible. MS paid a *lot* of money for SCO licenses that were somewhere between unnecessary and worthless to MS. Also, lately, SCO has been making strange offers about discounts to people who make the switch to any non-linux system, and saying it in a way that all but screams "Windows."

    Bottom line, I'd bet on Canopy running this scam. I'd wait for some more bookkeeping before I listened to the MS angle.

    --

    -Looking for a job as a materials chemist or multivariat

  62. Watch the details by MarkusQ · · Score: 2, Funny

    I think it's highly unlikely that this market manipulation is SCO, Canopy, Microsoft, Sun or anyone else. It's probably just independant brokers who know a goldrush when they see one.

    I don't know who/what it is, but it doesn't act independent. Watch the moment to momement bid/ask volume, etc. compared to a typical "goldrush." At the very least, whoever's keeping this turkey afloat has 1) quite a bit of money to thow away on the project, and 2) if there is more than one of them, they at least have each other's cell phone numbers or all read the flags on the same signal tower.

    A goldrush acts like a swarm of flies; this acts more like a team of ants.

    IMHO, of course.

    -- MarkusQ.

  63. Haven't sold shares? by j-turkey · · Score: 2, Interesting
    SCO says the "pump and dump" theories are nonsense and that Sontag, along with Darl McBride, CEO, have not sold a single share. Some executives have sold shares but only small amounts and mostly "to cover tax consequences on restricted stock," Sontag says.

    I wouldn't be too sure about these claims. Judging from this page, there's been a few million in insider trading since June (unless I've been reading this wrong, which is entirely possible). Quite a bit for such a small company (2.4%). One executive has sold somewhere around $1,595,650 in stock since June...around 125,000 shares of his original 215,000. Sounds like a majority of his holdings to me. Now I don't know much about finance, but I think I can say this with authority: Small amounts to cover tax penalties my ass. That's a fortune, even after taxes.

    --Turkey
    --

    -Turkey

  64. Re:yes, i want to see them in court by walt-sjc · · Score: 2, Funny

    I want to see mcbride and his cronies being Bubba and HIS cronie's bitches.

    Wait, maybe I don't want to SEE it, just know it's happeining... :-)

  65. It's like out of a movie... by frkiii · · Score: 2, Funny

    IBM: Give us the specifics of your allegations.

    SCO: You don't need to see the specifics of our allegations.

    IBM: Give us the specifics of your allegations.

    SCO: No fair, no fair! You waved your hand just like we did, we will sue, I tell you!

    Slashdot and Groklaw: Nothing to see here, move along, move along....