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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.'"

20 of 507 comments (clear)

  1. 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! :)

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    Programming is like sex... Make one mistake and support it the rest of your life.
  2. 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.

  3. 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.

    --
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  4. 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.

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  5. 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!

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    1. 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?

  6. Laziness! by bersl2 · · Score: 5, Informative

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

  7. "Enthusiast"? by John+Hasler · · Score: 5, Funny

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

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  8. 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!

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  9. 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.

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  10. 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.

  11. 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.

  12. 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 ..."

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    Trust the Computer. The Computer is your friend.
  13. 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.

  14. 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...

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  15. 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.

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  16. 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

  17. 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.

  18. 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