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SCO Aims For The Feds
MoFoQ writes "News.com reports that SCO is now targetting the Feds and their supercomputers (the Beowulf clusters, etc.). Looks like they bit off more than they can chew, even before winning a single case "
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Yeah, we can only hope they do!
But why are they doing this, then? It does seem suicidal...
I don't know the meaning of the word 'don't' - J
It's awefully difficult to believe the rediculous actions of this company.
""If you fail to respond to our efforts to pursue a licensing arrangement, WE WILL TURN YOUR NAME OVER TO OUR OUTSIDE COUNSEL FOR CONSIDERATION OF LEGAL ACTION," Pettit said."
This was amusing. For consideration of legal action? It's sad how they managed to turn the legal system into a circus. It painfully shows how we need to fix our system or face future SCO's.
""Open-source software--available widely through the Internet--has the potential to provide our nation's enemies or potential enemies with computing capabilities that are restricted by U.S. law," McBride said. "A computer expert in North Korea who has a number of personal computers can download the latest version of Linux...and in short order build a virtual supercomputer.""
This will happen regardless of what happens in the US. Linux is all over the world in multiple distros. I don't think a SMALL company like SCO will ever be able to do anything about it. SCO is in it's death throws. Let's bury them before they stink up the place.
Has Comcast disconnected your Internet account? Same here. You can read about it at http://comcastissue.blogspot.com
Sounds like Mr. McBride is really looking for any way to show linux is a danger. But does he really believe to make us think his goal is to protect the world from US enemies ?
And who is SCO to tell what the US should do with free software ?
I remember someone saying that a certain stock price (in the $8 range?) would trigger a number of events which could hurt SCO financially (note that the effect I'm thinking of is from more than just a low share price--it triggers some clause in their contract with Baystar or one of those investors).
:]
Does anyone here remember that price, or how badly it would hurt SCO?
They're at $8.71, and I want to know what price to root for...
That and I keep wondering what some of the odd numbers mean, just look at this from Yahoo finance (via Google) --
After Hours (RTM/ECN): 8.60 0.11 (1.26%)
Last Trade: 8.71
Trade Time: Mar 19
Change: 0.04 (0.46%)
Prev Close: 8.75
Open: 8.43
Bid: 0.01 x 100
Ask: 9,000.00 x 100
1y Target Est: 25.00
Do I read that right that someone was asking $9,000 for 100 shares of SCO? Sheesh! Talk about being out to lunch... I have to think that some people are screwing around here or something, though... Does any of this stuff influence the share price?
Ironically, somehow I feel like the $0.01 bid is reasonable, though, even though I have to figure that someone is goofing off...
You're correct so far you go, but what you've said doesn't really apply if your ultimate goal isn't to win any of the battles. SCO can talk all they want about how they are simply "protecting valuable intellectual property" but I think we all know that they don't care if they win any of these courtroom conflicts or not. That would be icing on the cake, but I doubt they expect it. This is all about damaging the competition (Microsoft's competition) and keeping stock prices as high as possible for as long as possible. You can bet that when SCO's house of cards finally tumbles McBride and Co. will cash out, move to the Caribbean somewhere and the company will fold.
The higher the technology, the sharper that two-edged sword.
They're not trying to win a single case, they're trying to get back in the press in a positive or semi-positive light and get the stock back above $10/share. Suing the federal government will give them exactly what they want: attention.
Darl and company will likely end up enjoying the last of their days relaxing on a south pacific beach somewhere. Microsoft wants them to do as much damage to FLOSS before they have to flee the country. Winning the lawsuits isn't one of their goals. Understand those facts and the whole thing starts to make some amount of sense.
Do you have ESP?
"Open-source software--available widely through the Internet--has the potential to provide our nation's enemies or potential enemies with computing capabilities that are restricted by U.S. law," McBride said.
Wow, I didn't know SCO was so concerned about saving the world from terrorists. Could someone give these people a humanitarian award please?
All of this reminds me of something my dad said growing up: Companies can get away with just about anything, until they burn either the government or the military.
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The Federal government might have a pretty good case for Eminent Domain.
Those labs are multibillion dollar projects.
The value of the unix source code is not more than the fair market value of the company (ie $300 million dollars) , so the feds could easily begin eminent domain proceedings against SCO in which the US government would take the Unix source code in exchange for fair market value.
Considering the massive use of Linux in federally funded schools, colleges and universities, settling the IP question once and for all would be worth it.
Then the federal government could treat the unix source code as a public document.
Im sure Microsoft would whine but its good public policy to preserve a competitive market.
predicted that with their stock recently dropping in price (again) that they would stage another publicity stunt.
Quote from yesterday before this happened "every time their stock goes down, they escalate the circus"
This guy is way out there
My colleagues and I were wondering if they'd have the guts to consider a suit against the labs. We're a seriously major player in terms of installed nodes and code contributions, and suing one or more of us would get a great stock price bounce. It would also some of the brightest geeks on the planet and lawyers with a bottomless checkbook involved in SCO's world (not that it isn't happening already via the existing suits). They'd also be suing a weapons lab in a time of war and telling them you want to confiscate their classified gear - if you thought the Nazgul were cranky, try threatening somebody with enormous amounts of restricted data and see what kind of badness shows up at your door.
:)
On balance, I just can't see them doing this. The government can really spank somebody in a million different ways if you irritate them (SEC, FBI, air strikes...) and SCO's got enough to worry about right now. Then again we're talking about a company that thinks it's a good idea to sue IBM, so who knows?
God, I hope they do it.
"Free or low-cost open-source software, full of proprietary code, is grabbing an increasing portion of the software market. Each open-source installation displaces or pre-empts a sale of proprietary, licensable and copyright-protected software," McBride said in a letter, republished by the Open Source and Industry Alliance. "This means fewer jobs, less software revenue and reduced incentives for software companies to innovate."
"We are firm in our belief that the unchecked spread of open-source software, under the GPL (the General Public License covers Linux and many other open-source programs), is a much more serious threat to our capitalist system than U.S. corporations realize," McBride said. "
Notice that all of the above, sounds exactly like the MS party line. And like the MS line, has holes the size of a Buick.
"Microsoft wants them to do as much damage to FLOSS before they have to flee the country. "
Two things.
One-are they doing any damage to FLOSS?
Two-I doubt there's very many places McBride and friends can hide, in peace.
Of course, if they can get federal agencies (who aren't playing with their own money anyway) to pay them to shut up and go away, so much the better!
Fed agencies will certainly not cave in. In fact they are likely to become very incensed at this escapade and consider it to be a type of shakedown racket.
What with Canopy representatives on their board of directors and all.
I can personally reassure you on behalf of Trolltech that Canopy has no influence in our day to day management.
The real Ralph Yarro posts as Anonymous Coward. Anyone else is an impostor.
If you are a US citizen, you had best root for the Feds. Whatever it costs them will come directly out of your pocket. That is why our economy is refered to as a system.
Darl is off his rocker if he thinks open source software helps our enemies. It helps humanity as a whole. His remarks sound like he's trying to appeal to our current neo-con regiem's inability to comprehend issues that affect anyone except fellow members of Skull & Bones fraternity.
ok, i admit i'm clinically paranoid - but i still think SCOX will eventually set up a patsy to lose a case to ensnare gnu/linux. i wonder if the US government would collude in such an operation. MS is a big money vacumm cleaner that sucks cash from other countries into the US - democratizing computing could appear to the technically ignorant realpolitikos as a net loss, nationally.
pr0n - keeping monitor glass spotless since 1981.
someone was asking $9,000 for 100 shares of SCO? Sheesh! Talk about being out to lunch...
Lemme explain how this works. Having experienced the joys of a pump and dump scheme first-hand, there are a few common strategies probably being used by SCOX's capital team:
- keep the public relation newswires busy with misinformation that misdirects strategic setbacks, court losses, and other negative information. This is especially important when you're expecting a major setback. It's a sort of "watch the monkey! keep an eye on the monkey!" misdirection.
- negotiate third party buy deals with market makers. Under the table stock transfers and other mechanisms help load these parties up and allow them to take a partial loss from stock purchases such as these. When this is well coordinated, using a good amount of "buyers" instructed to follow a release like this, it can push a stock like SCOX up $2-$3.
- funnel money in via Reg-S deals: Reg-S, similar to Reg-D private placement deals, allows SCO to sell shares directly to international investors who have a shorter holding period. Watch for a large amount of Reg-S as a clue for pump & dump. These folks are likely buying at a steep discount but are able to beat the market by dumping well ahead of the decline. SCO's 10Ks show a good amount of Reg-S activity.
Incidentally, has anyone found an offshore bank being used by SCOX yet? I've been looking but haven't yet found the usual Bermuda/Turks/etc. channel for funneling money beyond US control.
I Have been following SCO prices during the decline over the past two weeks. If you look at the Yahoo page you are quoting from you will notice a sharp rise started at 3 o'clock, one hour before closing where it went up 20 cents in the final hour. This rise at the last hour has been a consistant feature for the two week period that I have been watching them and it occurs every day even if just before the rise the high bid is considerably lower. On Friday just before the last hour spike the price was 8.51. The high bid was 8.43. The stock still rose 20 cents between 3 and market close at 4.
4 Minutes after close a buy went thrugh that was for 8.60, 11 cents under the offical close.
The pattern over the past two weeks looks like someone is attempting to pump the price in the final hour of trading to get a more favorable closing price.
Quemadmodum gladius neminem occidit, occidentis telum est
This is a good move for two reasons:
;) )
1) If the government decides to settle, SCO will be able to twist the truth and claim that the US Government backs their side of the case.
2) If the government doesn't settle, SCO will be able the claim the government biased against them, which may help with PR.
Hopefully SCO and their supporters pay for what's going on, now. I'm thinking of closing my account at Royal Bank to avoid indirectly funding SCO. That's a pretty big deal given the fact that when I grad I'm going to be a lawyer with an MBA. (And now I'm officially hated by slashdot
"And C++ programming languages, we own those,"
Geesh. parent poster was not kidding.
Darl: "several dozen requests a month just to come in and see AIX or HP-UX code base."
Didn't they ask IBM to show them the AIX source in their case against IBM? Then what is this about?
Maybe this was the interview where he had to prove to the rest of the 'gang' that he was capable of lying through his teeth without blinking?
Actually, googling around this article a little, extrapolating the trend: Will he sue the US Courts for migrating to Linux next? (btw wouldn't that be some sort of chicken-and-egg problem (ergo very likely for SCO to do)?)
Darl: "NASDAQ, for example, runs all of the trading machines in their brokerages on OpenServer."
Oh, and the trade 'floor' that lists their stock, NASDAQ too? Actually in that article NASDAQ "wants to eliminate the company's Unisys Corp. mainframes and migrate the trading-floor functions that run on those machines" and "Nasdaq currently uses about 300 Unix servers running a mix of HP's Tru64 and HP-UX operating systems as well as Sun's Solaris". I see mentions of Unisys, HP Tru64, HP-UX, and Solaris: Where is the SCO OpenServer that Darl was speaking about? Not mentioned, so not even close to OpenServer on 'all of the trading machines', likely even none at all, given the specific mention of Unisys for trading functions...
--- Hindsight is 20/20, but walking backwards is not the answer.
LLNL has some serious backbone and will fight SCO to the death; they have too much riding on Linux and they aren't going to let SCO get in their way of realtime simulation of nuclear explosions. SCO is screwed.
SCO isn't suing BoA because they are scared of what BoA could do to them. If not, why announce the Fed-suit instead of going back after BoA?
I agree with your reasoning, right up to this line.
Pissing off the world's banks may make life exceedingly difficult for most of us, but with some care (ie, knowing you'll lose any semblance of credit in the near future), people like Trump (and even Darl, though not even in the same ballpark) can prepare for such an event and weather the storm.
Pissing off the Federal Government, however... Well, no amount of preparing (short of applying for and gaining political refugee status in a semi-hostile nation, and even that will fail if Uncle Sam wants someone badly enough) can save you from that ball-o'-wrath. I'd bet the FTC and the SEC may have a few choice words for Darl et al, if they found themselves dragged into this pump-n'-dump scam. And of course, with the leaked internal memos, particularly with Microsoft involved, I would not feel surprised to hear about some vague antitrust and RICO violations.
Not to mention that the Federal Government needs to give its permission to sue it... So they can just say "no, go away", and Darl can't do a damned thing about it.
So yes, annoying BoA would hurt Darl's cause (his real one, not the charade playing out in the court system). But going after the feds just begs for trouble that not even other whole countries can easily withstand (and I say that without a hint of nationalistic pride, just matter-of-factly).
According to the quote attributed to him in the news.com story, the "export" of open-source software could be used by enemies of the U.S. -- he cites a North Korean computer specialist as an example. (Never mind the fact that he is implying that the U.S. is the only nation contributing to the propagation of open-source software, which is ridiculous on its face.)
But by that same logic, the U.S. should immediately cease all exports of, say, wheat -- because terrorists outside the U.S. can use that for sustenance, which means they can grow up to be Big, Strong, Healthy Terrorists as a result of those exports.
OK, so it's a stretch, but then so is pretty much everything McBride has said in the past year.
-Brian
I Have been following SCO prices during the decline over the past two weeks. If you look at the Yahoo page you are quoting from you will notice a sharp rise started at 3 o'clock, one hour before closing where it went up 20 cents in the final hour.
That sort of thing has been going on for the past year. It's most likely one insider trading to another to help prop up the share price. SCO is mostly owned by insiders, and most of the publicly traded stock is owned by a few organizations, so the price is easily manipulated. This is in part how the stock maintained its anti-gravity status for most of the past year.
This raises a possibly interesting point. Any lawyer here who understands the US legal system? Could TSCOG then claim that the US court system is not qualified to consider the main case because of conflict of interest? This seems nuts, but less nuts than any other legal argument that we have heard from them. Any chance of an appeal based on it?
At the end of the article, they mention letters that SCO sent to every congressman saying:
"Open-source software--available widely through the Internet--has the potential to provide our nation's enemies or potential enemies with computing capabilities that are restricted by U.S. law," McBride said. "A computer expert in North Korea who has a number of personal computers can download the latest version of Linux...and in short order build a virtual supercomputer."
Like most of their previous assertions, they don't let logic get in their way on this either.. As if Linux is the threat here.. By this same logic, you would need to outlow Solaris-x86, Windows, *BSD, and anything else running on x86's.. They key to these systems is not the OS, it's the price/performance of these commodity CPU's.
SCO wanted the general public to think of this case as one of David v. Goliath. However, it is becoming clearer and clear that it is not a David v. Goliath case at all. In the historical David v. Goliath, Goliath picked the fight. In fact Goliath taunted the Isrealites. The would-be David in this case is SCO, and SCO picked the fight. But it seems that SCO did not just limit the fight to one Goliath. Oh no. Getting cocky, while swinging its sling, and a limited supply of ammo, SCO has gone on to pick a fight with a couple of other Goliath's; some of the Goliaths are bigger and some are smaller. But now SCO has decided that by threatening to sue the Feds, SCO has decided to pick on the biggest Goliath of them all. But that is not the best part -- this new Goliath (we'll called it the US Goliath Family) has a family, one that has deep pockets and several methods of persuasion. Between the members of the US Goliath Family you have the FTC, with power to investigate and criminalize the actions of SCO; the FBI, which has the power to investigate rackateering and extortion amoung other things; the SEC, which can investigate the claims of M$ involvement and bring criminal charges for securities fraud; the IRS, which can look into the finances of the company and conduct an expensive and lengthy audit; and several others in the family. SCO has just opened a can of worms, and they had better hope that they are right, becasue if they are wrong, they will have sealed their own coffins.
The tables have now turned. Several government agencies have said this is a copyright issue. Now that there is a threat that government agencies will be dragged into the equation, there is now a huge financial incentive to look into possiable criminal conduct. The US government does not take well to extortion attempts. Perhaps SCO is doing this out the "spirit" of capitalism. Who knows. But one lesson that I learned quickly well growing up in the Wash, DC area is that when the government gets pissed off at a company things get rather unconfortable for the company. And forget the congressional support. When things start to hit the fan, you can bet that some General is going to have way more power in swaying a Congressman's opinion than SCO will.
The views expressed are mine own and do not express the views of my employer.
Actually, a majority of the supercomputer weapons research being done these days involves stabilizing and safely storing the current stockpile of nukes. The rest of it is so that we can stop actually nuking Nevada and New Mexico while still having up to date technology.
Take away their supercomputers and the government won't stop research, they'll just return to blowing up actual bombs.
my sig's at the bottom of the page.