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More on Recent SCOings On

An anonymous reader writes "Blake Stowell, SCO's director of communications, acknowledged that the leaked memo is real." However, Stowell went on to say that the memo was misunderstood, and that Microsoft has not been funding SCO, as was previously alleged. In addition, Computer Associates is now vehemently denying they ever licensed Linux from SCO. AlabamaMike writes "Being employed by Computer Associates myself, I had to admit I was terribly dismayed by the news that the company I work for had licensed SCO's dubious Linux IP. I sent some mail around to those I thought would have some info about what was going on with this very odd move, and the response that came back truly should be posted for the /. community. Basically this is a very creative spin on a settlement CA did with Canopy Group regarding a breach of contract settlement totally unrelated to Linux. Associated with that settlement was a set of UnixWare licenses to which SCO has taken the liberty of attaching these 'Linux IP' licenses."

24 of 569 comments (clear)

  1. More interested in what MS has to say by nokilli · · Score: 5, Interesting

    It's hard to see how they can continue to maintain that they were just "licensing" IP from SCO. As the memo appears to be genuine, it seems to me that Redmond has a lot of explaining to do. Especially to the Justice Department; I mean, if this isn't predatory behavior then I don't know what is.

    1. Re:More interested in what MS has to say by danamania · · Score: 4, Interesting

      I just had a little spinetingling experience, which was serendipitously timed.

      Watching an old "Computer Chronicles" video of Macworld 1989, a news short at the end of the main story states:

      "...Microsoft nudged closer to the UNIX world last week, buying a 20% interest in the Santa Cruz Operation, a major UNIX software house. A recent market research study predicts a 29% annual growth rate for UNIX systems compared to a 12% growth rate for all other systems"

      Likely completely irrelevant, but just one of those things that came up with lovely timing!

      --dana

    2. Re:More interested in what MS has to say by 4of12 · · Score: 5, Interesting

      I mean, if this isn't predatory behavior then I don't know what is.

      It might look that way to you, to me and to a lot of other folks.

      But a well-paid lawyer is able to say with a straight face that it doesn't make sense for Microsoft to be hauled into court simply for making a bad investment decision.

      "Bill Gates thought he'd give Warren Buffett's business model a crack after accumulating US$ 50 billion in cash, but due to his lack of experience he made an unwise investment in SCOX which has lost considerable value. It's a capital loss, your honor!"

      --
      "Provided by the management for your protection."
    3. Re:More interested in what MS has to say by rickmci · · Score: 4, Interesting

      Don't matter about what the justice department will or will not do. SCO is first to fall to Linux and Microsoft is on the short list of greedy monoplizing companies that will also fall to Linux. I am just glad the "Linux is unix" and "GPL" stuff will be settled in court soon. SCO will loose, IMB will have stomped them to dust. Then every vendor has the same starting point (GPL Linux). Let the compentition begin for the best support, add-ons and value added products. If that is not the best description of fair compention. I don't know what is.

      Then Microsoft will have very little to fight Linux with. They can join the linux world or die like the rest of the greedy software companies.

      We all know this is Microsoft game anyway. SCO is just the stoogies Microsoft has setup to take the fall. This is there only hope to stop Linux right now without the Justice department being all over them.

    4. Re:More interested in what MS has to say by harmless_mammal · · Score: 5, Interesting
      Yes, but I find this statement to be more interesting...
      • The will help us a lot and if we execute we could exit and Unix componients we have build potentially back to Microsoft or MCS.
      Doesn't this look like SCO would be interested in selling it's Unix properties to Microsoft if they're actually successful in solidifying their position?
    5. Re:More interested in what MS has to say by justanyone · · Score: 4, Interesting

      It would be nice if that seperation were as clean as you suggest. Unfortunately, the exectutive branch appoints the guy who's in charge of deciding which cases to prosecute...

      There's something called a 'writ of mandamus' (i am not a lawyer=IANAL).

      This writ is used to call upon a judge to compel a prosecutor (executive branch) to prosecute a case (or do several other things).

      This means any citizen can notice, "Hey, this guy's committing a crime and they're not prosecuting them!", file a writ of mandamus, and a court will tell the prosecutor, "You have to prosecute this guy." and they do under pain of contempt (I believe).

      -- Kevin J. Rice

    6. Re:More interested in what MS has to say by rixstep · · Score: 4, Interesting

      You've only made things worse for yourselves.

      I'd be happy if you were right, and up until yesterday I would have thought you were, but to underestimate Bill Gates is to lose, and the man is an incredible schemer. I do not put it past him to have sketched this scenario for the past five years, since before ESR ever got the Halloween Documents. Five years is a long time to let grass grow between your toes, and MS would not let that happen.

      They're playing poker. Something they've always been excellent at. They're not playing to win the hand by showing their cards; they're playing to out-bluff and intimidate all the other players until everyone folds.

      Anyone else in business, up against the open source threat, would have given up, would have assessed the situation as hopeless.

      But not our Bill.

    7. Re:More interested in what MS has to say by justanyone · · Score: 4, Interesting

      The court system in the United States is set up (I believe) as follows:

      The constitution provides that there shall be a judiciary consisting of a Supreme Court, and whatever other courts that the supreme court shall deem useful.

      The supremes long ago divided up the U.S. into a set of federal districts. In each of these districts, there are a set of judges and an appelate division (for appeals).

      I'm a little unclear about how the civil and criminal parts of this are set up...

      Regardless, each of these district courts have an organization which is paid for out of the federal budget. I believe this is a block grant granted by congress to the Supreme Court's organization. The money goes to this organization and they decide how to spend it, thus preventing congress from preventing allocation of funds to district X in retribution for their ruling on case Y.

      This subordinate organization, the 'clerk's office' of the court, accepts properly formatted (defined clearly in U.S. code) motions, etc. These official documents are processed by this judical branch office and funneled for review to a judge through the judge's office (set up I believe at their discretion).

      The post above was: "Now who tells the court they have to tell the prosecutor to file?" This is the writ of Mandamus that I was referring to. It means that you, a private citizen, can file a motion with the clerk of the federal district court in which you ask for a writ. A judge will act on this motion (is this enforced by a law itself, that some action must be taken in response to a properly filed motion????). That action will be to create a writ of mandamus (or not - you may not convince the Judge to act on your motion if you're asking the prosecutor to prosecute "Men From Mars"(tm). This writ is a legal order to the prosecutor's office to do something.

      If they don't do something, and probably they must do it to a judge's satisfaction, they will will be in contempt of a federal court order, in which case all sorts of bad things start happening from other divisions within the exective branch as well as the judicial branch, I think (someone, please correct me??)

      I should make a point here about Federal Judges. Don't mess with them. Don't think of messing with them. Don't even think about thinking about it. By 'mess with' I mean 'gain the attention of in an unfavorable manner'. Judges can cite ordinary people, organizations, etc. with contempt charges and functionally put them away for a long, long time. Of course, there's the appeals process to remediate this, but in contempt cases I believe this is given wide latitude. Can some lawyers comment on this?

      This should probably be in a Wikipedia article but I coudn't find one that explained the organization of the courts.

  2. Speak the truth brother Linus.. by glassesmonkey · · Score: 5, Interesting

    LA Times (free crappy reg) story
    Here's the highlights (emphasis added):

    SCO Confronting Its Creation
    Company's CEO is taking precautions as the head of the 'most despised' tech firm

    From Bloomberg News

    Darl McBride, chief executive of SCO Group Inc., says he sometimes carries a gun because his enemies are out to kill him. He checks into hotels under assumed names. An armed bodyguard protected him when he gave a speech last month at Harvard Law School.

    Linus Torvalds, creator of the Linux operating system, calls SCO "the most despised company in technology."

    McBride and SCO are more hated than Microsoft, the world's largest software maker, and its Chairman Bill Gates, according to some Linux backers. That's because SCO, once a backer of Linux, has turned around and attacked the essence of the system: its free source code.

    "SCO are just complete hypocrites," said Jeremy Allison, co-author of Samba, an open source software that runs a file and print service that SCO sells.

    "The real reason why people don't like SCO, and Darl McBride in particular, is that he is so dishonest," Torvalds, 34, said in an e-mail.

  3. Re:"a few years"? by indigeek · · Score: 5, Interesting

    I'm just waiting for the markets to open.
    Yesterday the shares had begun to fall after ESR leaked the mail, before all the news sites started up with headlines saying SCO licenses have been bought.
    Today is perfect, markets have not opened, CA has not bought a license and it is clear that SCO is a front for M$ from which no profits for shareholders are to be had. Moreover, there is the muzzle on SCO by the court.
    I hope thatwe don't get an unnatural price rise due to this being a friday and everyone trying to cover their short positions before the week ends !!

  4. SCO's whole story is just TOO bizarre... by cozziewozzie · · Score: 5, Interesting

    I mean, who could have thought of a worse, more stupid way to piss off the whole tech sector and drive yourself into bankruptcy. The more I think about it, the more this strange idea develops that SCO (Caldera) is actually doing all this rubbish to help the Linux community. OK, it is way out there, but in some perverted way, it makes sense.

    First of all, you have a Linux company (Caldera) who, despite their best efforts, has trouble staying afloat. At this time, there is no corporate support for Linux, the big vendors are running away from it, and the "GPL has never been tested in court" is touted as an argument all over the place. Big UNIX vendors only see Linux as a way to get people into their more proprietary solutions.

    So, Caldera buys out a UNIX vendor and does the most ridiculous thing imaginable: sues everybody, proclaims that Linux is communist and all that bullshit. Fast forward to the current situation: IBM, HP, Novell and other big players are squarely behind Linux and protecting it. Microsoft is exposed as a greedy monopolist who uses underhand tactics (yet again). GPL gets tested in court and it is under such circumstances that guarantee a strong precedent in GPL's favour. The UNIX heritage is cleared once and for all. Linux wins, in a BSD fashion, and is free from corporate FUD. And who pays the bill? Greedy investors.

    This could turn out the be the best thing for the corporate image of Linux ever.

  5. Blake inserts foot into mouth by codepunk · · Score: 4, Interesting

    So why on earth are the suing Autozone if they have
    a license to run the binary form in Linux. Isn't that the meat of their argument.

    A little quote from Blake reguarding the CA vapor
    license deal.

    "UnixWare licences allow SCO customers to run UnixWare and the SCO Intellectual Property Licence allows Linux end users to run our Unix intellectual property in binary form in Linux. Today, CA has a licence in place to run our Unix IP in binary form in Linux without fear that they may be infringing on our intellectual property."

    --


    Got Code?
  6. PJ has a point by burgburgburg · · Score: 5, Interesting
    Reading over at Groklaw, I saw that PJ has a great point: Now that the memo is noted as authentic, IBM can subpoena Microsoft and ask for their email and documents.

    Imagine the fun things they'll find!

  7. We all knew. by ljavelin · · Score: 5, Interesting

    Most industry analyists knew that Microsoft was concerned about Linux.

    But I for one never quite realized that Microsoft was in a panic.

    I heard all the rumors - "maybe Microsoft is behind the SCO lawsuit"... but I didn't think Microsoft would actually be funding this entire effort. I mean, isn't Microsoft focusing on the Next Generation Great Thing that will put Linux to bed once and for all? Obviously, the answer we now have is "no".

    I read the news yesterday, and it seemed pretty clear that the memo was a fabrication. I mean how could such a blatent memo be true? And with all the grammar and spelling errors? It just didn't add up. Mircosoft is smart, right? They hire smart people, right? They may be a monopoly, and they may make try to lock their customers into their products, but they're doing it to make globs of $. That's smart, right?

    Well obviously I was mistaken. Microsoft was more-or-less caught trying to fuck up the entire Linux industry by buying what is looking more and more like secretly misusing the courts. On top of that, Microsoft is looking like it's releasing blatent lies about the Linux industry under the guise of Microsoft fabricated or controlled companies.

    Microsoft, it's time to come clean. Don't you think it's time that you admit that you're funding these lawsuits?

    Or is Microsoft so scared about Linux and the Law that it'll continue to shelter itself behind a quickly diminishing cloud of deception and covert control of companies like SCO?

  8. fraudsters by Ender+Ryan · · Score: 4, Interesting
    Basically this is a very creative spin on a settlement CA did with Canopy Group regarding a breach of contract settlement totally unrelated to Linux. Associated with that settlement was a set of UnixWare licenses to which SCO has taken the liberty of attaching these 'Linux IP' licenses."

    That sounds like pretty good ammo for a fraud suit if you ask me. It's not in itself enough, but it certainly shows SCO in a lie that's so obvious and deceitful that it just can't be ignored or chalked up to misunderstanding, and it's not too technical for a *moron(ie. a U.S. judge) to understand.

    * no, I don't really think all U.S. judges are morons, but sometimes you gotta wonder...

    --
    Sticking feathers up your butt does not make you a chicken - Tyler Durden
  9. Re:CA is hardly a saint (FUD ALERT) by DLG · · Score: 4, Interesting

    Interestingly enough, no one was or is jumping on said bandwagon. I have found it very interesting to read some of the ways that AC has been used to distract this discussion away from Microsoft/SCO.

    I don't think the question here is CA or IBM (another AC posted on how CA is almost as bad as IBM at FUD, which is interesting when the discussion is really on Microsoft and SCO.) but it is certainly good to spread the mud around to make things less clear. I also saw the statement that this was no different than media saying that linux advocates were behind MYDOOM, and that none of the Halloween papers had every been objectively proven as real, despite the fact that both this latest one and many early ones WERE confirmed by Microsoft (and in this case SCO).

    Just a warning to everyone, it seems like there is alot of counterattacks on Slashdot. This particular post might be legitimately from someone who has some grudge against CA and isn't really a press representative sent to sow some discord and confusion into a discussiont hat is already hard enough to follow.

  10. MS funding and the Halloween documents by Anonymous Coward · · Score: 5, Interesting

    The Halloween 3 document ( http://www.opensource.org/halloween/halloween3.php ), first posted by Eric on Nov 5. 1998, contains an interesting quote:

    "Unless Linux violates IP rights, it will fail to deliver innovation over the long run."

    The comment by Eric is even more interesting:

    { This final remark is worthy of an essay all by itself. It is the least logical -- and at the same time, most damning -- assertion in Ms. van den Berg's entire statement.
    As propaganda, it has a superficial cleverness. It plants the idea that any MIS manager so foolish as to use Linux will find his operating system yanked out from under him by a future patent lawsuit -- perhaps one initiated by (whisper it) Microsoft itself. It's a perfect FUD tactic. ...snip... }

    More clear sighted theory there than anyone would have thought, 5 years ago.

  11. Re:"a few years"? by WCMI92 · · Score: 5, Interesting

    If you follow the Yahoo SCOX forum (there is a lot of noise, but some people there who are REALLY well informed as well), you will note that it's pretty obvious that on low volume days "painting the tape" is going in.

    Little blocks of 100 shares keep changing hands at prices above what the last sell off was...

    It's an illegal, but hard to prove practice.

    But SCOX seems to consistently get "painted" upward daily after a big sell.

    --
    Corporatism != Free Market
  12. Why is this so hard to understand? by nagora · · Score: 4, Interesting
    SCO's entire argument is that it owns ALL Unix-like systems. If they get Linux they'll use that as precedent for *BSD, OS-X and anything else they can get a hold of. The money they could make if they get away with this would put MS's contribution in the shade.

    SCO are totally dishonest and they will repeat the "Linux is ours" routine until someone stops them.

    TWW

    --
    "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
  13. Interesting settlement by UnknowingFool · · Score: 4, Interesting
    Basically this is a very creative spin on a settlement CA did with Canopy Group regarding a breach of contract settlement totally unrelated to Linux. Associated with that settlement was a set of UnixWare licenses to which SCO has taken the liberty of attaching these 'Linux IP' licenses."

    Isn't this right out of the MS playbook? When MS agreed to settle with the Justice department, part of the original settlement proposed millions of dollars of vouchers for schools redeemable only for MS software. Later when it's competitors complained that this just extended their monopoly, it was changed to any software or hardware.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  14. Re:Begin Focusing on Destroying SCO by Zathrus · · Score: 4, Interesting

    The gov't can do this, but is it possible
    for a private citizen or public group to initiate proceedings for the revocation of a corporate charter?


    No idea. The more interesting question, however, is whether or not you could pierce the corporate veil. Particularly Canopy's veil. If there were (as alleged) some underhanded dealings regardin SCO, Canopy, and other Canopy holdings then you could easily pierce the corporate veil.

    Once that's done you can pretty easily sue the directors of the companies involved (both SCO and Canopy) and take them to the cleaners. And there's nothing they can do about it -- their personal property would no longer be immune from lawsuits, and between civil and personal lawsuits you could pretty much guarantee that they'll die penniless paupers in prison.

    Yes, vindictive. But seeing charlatans and crooks hide behind the corporate veil and get off scott free has gotten beyond tiresome. The various scumbags involved in this particular scheme could, possibly, act as a wake up call to a lot of other companies. Wouldn't that be nice?

    Oh well.. it's a nice dream at least.

  15. Re:Lawsuits dig a deeper financial hole for SCO? by 4of12 · · Score: 4, Interesting

    Boies doesn't work cheap

    Events have twisted full circle.

    If you go back about 5 years, David Boies was an attorney for the Justice Department, where he did a bang-up job prosecuting Microsoft for anti-trust violations.

    Of course, we all know how that turned out, with a settlement that doesn't seem to have visibly shaken Microsoft's business.

    Then, about a year ago, the SCO debacle starts up with Boies leading the charge.

    "How could Boies betry us?!?" cry the Linux zealots.

    Ignore that and consider the implications of these recent revelations. Doesn't this evidence beg for a re-examination of the terms of the settlement or the opening of a new investigation?

    --
    "Provided by the management for your protection."
  16. Re:"a few years"? by Zeinfeld · · Score: 4, Interesting
    You won't. Because you can't short SCO. I order to short a stock there has to be stock out there to short. And companies with few shares out there aren't "shortable," therefore, if the price goes up, it's got nothing to do with people trying to cover their short positions or creating short positions.

    You can borrow stock in pretty much any company out there. The reason you should not borrow SCO stock is that all the borowable stock has been shorted longsince.

    This creates a situation called a short interest trap. If the stock kicks up for any reason, or the amount of stock available to borrow suddenly decreases the shorts are forced to buy the stock back at market. This can lead to a stock bubble that is entirely due to the shorts being squeezed.

    SCO does have one remaining asset of value, the rights to UNIX. Quite what those rights is will likely be significantly reduced as a result of the case, but the value will not reach zero. Of course in the meantime lawyers fees will probably outweigh the remaining assets.

    --
    Looking for an Information Security student project suggestion?
    Try http://dotcrimeManifesto.com/
  17. It doesn't matter what MS has to say by Ohreally_factor · · Score: 4, Interesting

    1) When all is said and done, I don't think that SCO will have really done much damage to Linux (or by extension, the GPL). When all this started, the more far-sighted among us said this would be a great test case for the GPL. As SCO's smoke and mirrors have been pierced and as the various cases have developed, however, this has not been about the GPL. It's all been FUD. Most of us have known this for a while, but now EVERYONE knows it. If anything, Linux has gained strength, if this is the best that it's enemies can do.

    2) This potentially hugely damaging to MS. If the allegations are true (I'd put money on it), they're in breach of the settlements. Kollar-Kotelly, the judge of the punishment phase, will certainly want to take another look at the case. The various state Attorney Generals will want to reopen the case. There might also be new criminal charges filed, not to mention civil cases. At the very least, we should see some investigations. And I haven't even mentioned how this might play out internationally.

    3) Regardless of how this plays out in the courts, MS is going to lose big in the court of public opinion. The MS defenders will not have a leg to stand on. (I never imagined Enderle with any legs. Instead, I've always imagined him as a giant farting ass, with no other body parts attached.) The FUD campaign has not only fallen apart, it has backfired.

    4) Having failed to really slow Linux adoption or development, MS will continue to lose ground. Longhorn is two or more years out, folks are already suspicious about "XP Reloaded" (why name a product after a really bad sequel?), and Linux clearly has huge momentum.

    --
    It's not offtopic, dumbass. It's orthogonal.