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SCO's Biggest Investor Admits It Loves IP Lawsuits

Roblimo writes "A Baystar Capital spokesperson has finally admitted, directly and on the record to NewsForge reporter Chris Preimesberger, that they believe SCO's only viable asset is the potential proceeds of lawsuits against Linux users and vendors. 'We're looking for the best return we can, and we think the focus should be on IP licensing (and enforcement),' said BayStar spokesman Bob McGrath."

188 of 270 comments (clear)

  1. Behind every bad company... by ObjectiveGiant · · Score: 5, Insightful

    ... is a bad investor. =\

    --
    ::signature space for rent::
    1. Re:Behind every bad company... by monkeydo · · Score: 5, Insightful

      Don't fall for Roblimo's deception. He's deliberatly distorting the story. He says that Baystar thinks, "SCO's only viable asset is the potential proceeds of lawsuits." But then he quotes the Baystar spokesman as saying the focus should be on licensing. Duh. That's how companies make money from intellectual property. Of course this is only possible if you can make the threat of legal action.

      So really Baystar never said they love IP lawsuits. They said they want to make money off of IP. I'm sure that they would much rather just collect license fees than have to sue, contrary to what the title and Roblimo's description imply.

      --
      Si vis pacem, para bellum
      The only thing more annoying than a Libertarian is an (un|mis)informed Libertarian
    2. Re:Behind every bad company... by Salsaman · · Score: 4, Insightful
      But you can only make money off IP if you actually have some in the first place. Lets see now, SCO has:

      - no patents
      - no copyright claims on Linux (the kernel has been certified free of copyright infringement, SCO have failed to show even a single line of copied code, despite being ordered twice to do so by the court)
      - no trade secrets
      - no trademark issues with Linux

      So what's left for SCO ? Another EV1 stooge ? That should get them another 20K or so. Hardly a good investment considering the millions they are burning on legal fees.

    3. Re:Behind every bad company... by localman · · Score: 4, Insightful

      They said they want to make money off of IP. I'm sure that they would much rather just collect license fees than have to sue,

      And that, though legal and perfectly reasonable sounding, is the root of the problem. Companies that did not invent anything and have no intent of producing a useful product are gobbling up patent slips and collecting license fees or firing of C&D's. It is certainly an abuse of the intent, if not the letter of IP law.

      If patent reform isn't possible now, at least investors and other companies should blacklist these bully corporations.

      Unisys, SCO, Forgent, Rambus... interesting how the ones most famous for this garbage produce nothing particularly useful. Is this the type of thing the founding fathers were trying to encourage when they set up patents in the first place?

      Cheers.

    4. Re:Behind every bad company... by jacquesm · · Score: 2, Insightful

      what matters to 'outsiders' is whether they have a *chance* of winning a court case, not whether they have any real ip.

      Since the courts are known to be a version of vegas (where the amount of cash you can burn can stack the deck for or against you) this has (from an investors point of view) some merit.

      The best indicator of how many investors believe that SCO has a chance is it's stock price.

      Meanwhile the evil empire sits back and laughs, whatever the outcome for sco, win or lose they will win.

    5. Re:Behind every bad company... by s20451 · · Score: 2, Insightful

      Companies that did not invent anything and have no intent of producing a useful product are gobbling up patent slips and collecting license fees or firing of C&D's.

      I'm not sure this is such a good idea. A world in which patents have value but are not transferrable would strongly penalize hobbyists and small inventors. These people may patent a good idea, and either not recognize its importance or not be willing to dedicate their life to running a business, so the idea would never make it to market. So they would have the choice of surrendering their patent, or never releasing their invention.

      On the other hand, if you allowed a company to buy the patent, the inventor would receive compensation and the product would be manufactured. Non-transferrable patents would also cause major problems in the business world, in areas like corporate mergers.

      In my opinion the more important issue is submarine patents; the ones that surface after a decade of wide use and then extract licensing fees from what everyone thought was a free product. Patents should be like trademarks in the sense that non-enforcement (within reason) should mean invalidation.

      --
      Toronto-area transit rider? Rate your ride.
    6. Re:Behind every bad company... by localman · · Score: 1

      I agree -- patents need to be transferrable for the reasons you stated. And submarine patents are probably the most important issue to address at this time.

      But I guess what I was thinking is that there is also a problem with something that might be thought of as "patent scalping": where a company purchases a patent from a small inventor solely with the intent of pumping up the price.

      I support small inventors selling their patents to a company who will make use of it. I also support an inventor licensing a patent for other's use. What I don't support is a company who made no invention and makes no product to gather money because they managed to get their grubby hands on a slip of paper before anyone else.

      Cheers.

    7. Re:Behind every bad company... by corngrower · · Score: 1
      What I read into BayStar's article was that they were tired of watching Darl run around like a chicken with his head cut off. They expected SCO to take a much lower profile in regards to SCO's lawsuits against various companies. I'm sure the fact that SCO has gotten themselves in further than they can hope to manage has a lot to do with Baystar's wanting their money out as well.


      Even if SCO manages to win on some counts, in the end, overall I think they'll end up a big luser, dying a slow agonizing death.

    8. Re:Behind every bad company... by drinkypoo · · Score: 1

      If companies could only license patents rather than purchase them (except when actually buying a company) then probably everyone would be better off.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    9. Re:Behind every bad company... by Ogerman · · Score: 3, Insightful

      In my opinion the more important issue is submarine patents

      Even more important is the fact that patents are being granted for trivial things undeserving of a patent. As example: anything software related. Software is an evolutionary technology -- all improvements to the state of the art are, by themselves, merely logical next steps and not true innovation. Implementation is where the software industry innovates, and that is covered by copyright. The reasons why patents should not be granted for software are much the same reasons why patents are not allowed for mathematics or styles of literature, art, and music.

    10. Re:Behind every bad company... by div_2n · · Score: 4, Insightful

      That really doesn't make sense either. If what you say is true--that the courts are like Vegas and the money you spend increases your chances--then you would you bet on?

      SCO with about 70-80 million in the bank and a negative cash flow

      or

      IBM that probably has at least 10 to 20 times that and a positive cash flow?

      Seems pretty obvious.

    11. Re:Behind every bad company... by pantherace · · Score: 1

      It is solvable via licencing. The Inventor or Inventors get the Patent. (as the constitution states) It is likely that they will be employees and that their contract will state that it will be exclusively licenced to the company with the company able to sub-licence, and if the company merges, the licence merges. And also, the limited time as mentioned in the constitution, should be dependant upon the Inventor MAKING it exclusive, by licencing. (or trying to after they recieve the patent.) Now, what does this accomplish? 1) Actually follows the constitution's wording. 2) Actually benefits small inventors who apply for patents, I think. 3) It strengthens the position of people working at companies: if they are let go in a way not consistant with their contract, they lose the patent. 4) No more submarine patents.

    12. Re:Behind every bad company... by AmericanInKiev · · Score: 4, Insightful

      It's not like they are saying - This is our IP - you have to license it to use it.

      They are Saying - we may or may not have some IP which may or may not be included in the car you drive, the air you breathe, and weed you smoke.

      We have no intention of intentifying the IP - but we have huge plans on suing everything that moves and see how many suckers we can shake out of the sucker tree.

      The MO seems to be a play on the empirical fact that settling is often cheaper than fighting and winning.

      This is predictable.

      The slogan - we do not negotiate with terrorists - means sure it ALWAYS easiest to negotiate - but these things build on themselves.

      The end game of capitulation means leveraging the benefits of capitulation.

      AIK

    13. Re:Behind every bad company... by Antaeus+Feldspar · · Score: 1

      Respectfully, I think you've identified part of the problem, but are misidentifying the "root".

      "And that, though legal and perfectly reasonable sounding, is the root of the problem. Companies that did not invent anything and have no intent of producing a useful product are gobbling up patent slips and collecting license fees or firing of C&D's."

      So you're saying it would be okay if the company either a) invented the intellectual property in question itself, or b) was the direct manufacturer of a useful product embodying that intellectual property. You're saying the existence of middlemen is the root of the problem?

      I don't see it that way. The founding fathers intended for someone who contributes to the intellectual wealth of the nation, to be rewarded with a short period of exclusive rights, a head start in the race to profit from that intellectual property.

      Notice that the founding fathers said nothing about how the inventor or author was allowed to make their profit. An inventor who invented, say, a new kind of stove, could perfectly well try to become a manufacturer of stoves as well, and then a salesman of stoves, too, and try to make his profit that way. But who's to say that he'll be any good at both those jobs? Not only is he likely to be better at inventing than manufacturing or marketing, the more time he spends doing those two jobs, the less time he spends inventing -- and if his inventions are ultimately going to belong to the public, when the term expires, that means the public is punished with fewer inventions if he is made to try and do everything himself.

      There is no reason, therefore, to think that the founding fathers would disapprove if the inventor chooses to make his profit by selling the exclusive rights he has to his property to another party, who assumes the risks and rewards of trying to make a profit during the period that those exclusive rights last. It frees up the inventor to do more inventing and gives the manufacturers more to manufacture. If the inventors sells the idea for too little -- well, that is sad, but it's not a structural problem, and not susceptible to structural remedy.

      If it is not wrong for the inventor to sell their rights for profit, what is wrong about a party that has been sold such rights selling them in turn? Maybe it's an idea so great and revolutionary that no one manufacturer can make full use from it; licensing out the idea to multiple manufacturers is the only way to fully realize the profit potential of the idea. Is that somehow wrong because the manufacturers did not receive their approval to use the inventor's idea directly from the inventor?

      I'm sorry, you have not identified the real root of the problem. The fact that there are middlemen in the intellectual property process is not it. Any of the following would be more accurate candidates for the root of the problem:


      • Congress apparently thinks that "strong intellectual property protection" is the goal rather than "balanced intellectual property protection", and so yields to every suggestion by big corporations that they should shift the balance of the deal: that Americans should pay more tax money, to support IP enforcement on the behalf of big corporations, for more decades, and should accept an even longer wait before the public receives any benefits from the intellectual property having even been created. There's no indication that the public receives anything in return in this renegotiated exchange.

      • The Patent Office, whose mission should be to grant the patents that deserve granting, and reject the patents that deserve rejection, openly treats its mission as granting as many patents as possible regardless of their merit, and is structurally set up so that their staff is rewarded for granting bad patents and punished for rejec
      --
      If people are to respect the law, perhaps the law should begin by respecting the people.
    14. Re:Behind every bad company... by Grishnakh · · Score: 2, Insightful

      They have UNIX licensing.
      They have a _huge_ dispute with IBM over just that, and contrary to
      what people think it is about a WHOLE lot more than just copying UNIX code to Linux.


      No, actually, it's not.

      They (SCO) want Linux users to pay them for "Linux licenses". For this to be valid, their copyrighted code has to be in Linux. It's not.

      Now, if they have some type of valid contractual claim with IBM, that's nice; I really don't care. I'm not a party to that contract, and neither is any other Linux user, so it doesn't affect us. If IBM did actually break that contract and donate something to Linux they shouldn't have (which is extremely unlikely, but you never know how courts will rule these days), then IBM is liable for damages, but the rest of us are not. Contracts you're not a party to cannot legally affect you.

    15. Re:Behind every bad company... by Peaker · · Score: 1

      Sure, patents protect the little man.

      When the huge company uses his idea he can hire a band of lawyers to fight it out in court. But in that case, he's not so little.

    16. Re:Behind every bad company... by Perl-Pusher · · Score: 1

      The answer is no software patents. We already have copyright protection there is no need for software patents. Traditional inventions don't have copyright, but they have patents. The arts like literature have copyright but not patents. We've distorted the intent of IP protections by allowing both.

    17. Re:Behind every bad company... by localman · · Score: 1

      I see where you are coming from, and there's no terribly obvious final answer. But as I see it patent scalping is bad for the process. Companies will always seek the quickest buck, and the current patent system encourages this behavior. Fewer companies invent, more companies sue. Those are more related to patent scalping than to the other root causes you mention.

      And I do agree on both of your other root causes. Those should be addressed as well. The patent system is failing at it's original goal and needs an overhaul.

      Sorry about the Unisys dig. But the fact is they are most famous for the GIF issue. I'm sure they do some useful stuff too, but they caused more trouble with that move than they could pay back with their "office solutions".

      Cheers.

    18. Re:Behind every bad company... by tiger99 · · Score: 1
      Don't you mean at least 1000 to 2000 times that?

      Goliath was less than twice as tall as David.

      SCO want to be purchased by IBM, or someone, which is the only way they can survive. Their plan has gone wrong, they have made many new enemies, and no-one is going to put any money on the table, knowing that they will crush SCO in the end anyway.

      Had they taken on some company with about 100M in the bank, instead of IBM, it might have worked, they would not want to spend 50& of their cash on legal fees, but IBM's petty cash is probably bigger than the whole of SCO, and no-one, not even a company as well-provided with accountants as IBM probably is, will think twice about spending 0.1% of their cash to crush a parasite.

      You can win a slightly unequal battle by skill, a grossly unequal battle is a lost cause.

  2. Maybe ... by Udo+Schmitz · · Score: 5, Funny

    Hmmm, I should contact them. Maybe they are interested in my bridge selling business too ...

    1. Re:Maybe ... by Anonymous Coward · · Score: 1, Funny

      Or mabye a lucrative investment in my money laundering scheme. You see, I'v recently come into some money.......

    2. Re:Maybe ... by UnknowingFool · · Score: 4, Funny
      Dear Mr. Schmitz:

      On behalf of SCO, I must ask to cease and desist with your bridge selling business. SCO has both patented and copyrighted all bridges and is the well known originator of bridges, fountain of youths, and unicorns.

      If you do not cease, SCO will be forced to take legal action againt you. To avoid all legal entanglements, you may license bridge selling from us for the low price of $699.

      Sincerely,
      David Boies

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    3. Re:Maybe ... by SirTalon42 · · Score: 1

      Hm... your $33 too high on the license price.

    4. Re:Maybe ... by mrdogi · · Score: 1
      and is the well known originator of bridges, fountain of youths, and unicorns.

      OK, anybody else have visions of children spraying out of pipes?

    5. Re:Maybe ... by stevey · · Score: 5, Funny

      Dear David Boies

      On Behalf of SCO, I must ask you to cease and desist with your attempts to cease and desist others.

      Your cease and desist letters appear to have remarkable simularties with the proprietry and copyrighted cease and desist letters we produce.

      We are willing to reveal exact line numbers and phrases in common to any interested third parties under the terms of an NDA.

      If you do not cease, SCO will be forced to take legal action against you. To avoid all legal entanglements you may license our IP at a low price of $699 per single page cease and desist, or $1400 for double paged letters.

      Sincerly,

      Steve Kemp

  3. Great Plan by Jedi1USA · · Score: 4, Insightful

    No really....If that's their best Asset, They will go away that much faster.

    Best plan evar!

    --
    My old sig was REALLY stoopid.
    1. Re:Great Plan by Anonymous Coward · · Score: 1, Insightful

      >Best plan evar!

      No, that's a bad plan. SCO pretending to be in the software business is costing them a lot of money. Therefore, they will NOT "go away that much faster" if they get out of the software business by laying off all their engineers and related personel!

      We want them to bleed. Applying a tourniquet is then a bad plan.

  4. Dark Side.. by routerwhore · · Score: 2, Funny

    It's like watching Darth Vader turn evil and become the dark side as it reveals its true intentions. Soon they will become another geek household name to focus angst and hate against like MS and SCO.

    1. Re:Dark Side.. by Orgazmus · · Score: 1

      Most of us got the feeling they were bad long ago

      --
      The system had the verbosity of HTML combined with all the readability of compiled assembly viewed as bitmap images
    2. Re:Dark Side.. by KingDaveRa · · Score: 5, Funny

      Are you sure you don't mean 'Darl Vader'

    3. Re:Dark Side.. by FxChiP · · Score: 5, Funny

      Or perhaps 'Darth McBride'?

    4. Re:Dark Side.. by Anonymous Coward · · Score: 3, Funny

      Oh my, it makes sense now ... SCO, Sith Clandestine Order.

    5. Re:Dark Side.. by mog007 · · Score: 1

      That sounds like a new item from McDonalds...

    6. Re:Dark Side.. by Darth+McBride · · Score: 1

      I've already claimed IP rights to evil. Please give me $699.

  5. Interesting CNN article as well by edheler · · Score: 5, Informative

    CNN is carrying a story about one of the new investors in SCO, BayStar Capital Management, which wants SCO to "shake up its management and sharpen its focus on the potentially lucrative legal fight" and "spend less money on its Unix products." One has to wonder what BayStar is expecting as a reaction to their being so... blunt.

    1. Re:Interesting CNN article as well by DaHat · · Score: 4, Informative

      I saw that CNN story yesterday and was shocked that it hadn't appeared on Slashdot yet. I was even more surprised to see Groklaw talking about that news since Thursday.

      There is a key aspect of this Slashdot story... BayStar has asked for its money back unless SCO fixes a few things, including its management. That's they key here I think, when BayStar gets nervous with how SCO is proceeding and they want things to change or else.

      Here's hoping Darl gets ousted.

    2. Re:Interesting CNN article as well by Anonymous Coward · · Score: 2, Interesting

      >Here's hoping Darl gets ousted.

      Are you mad?! Whatever for?!

      You're a SCO investor or what?

    3. Re:Interesting CNN article as well by Ciderx · · Score: 1

      That's damned impressive. You'd didn't just not RTFA but you didn't manage to get to the second word of the summary! Sheesh!

    4. Re:Interesting CNN article as well by DaHat · · Score: 4, Insightful

      Nay, I don't like seeing complete and utter idiots in any position of power or authority... this is why, no matter what I'll be crying for a little over 4 years following the November election.

    5. Re:Interesting CNN article as well by Monkelectric · · Score: 4, Funny
      Here's the thing about Baystar *AND* RBC. They can't win. They know they were fooled. But they love money, so they can't now say "We were stupid, we fucked up...SCO has no case" because they'd be out a pantload of money. So instead they make up some clap track about the management, but the lawsuits still good ;-) They know they're phucked.

      I personally find their situation halarious (read: shit out of luck), and very fitting for companies wishing to profit from frivilous lawsuits.

      --

      Religion is a gateway psychosis. -- Dave Foley

    6. Re:Interesting CNN article as well by hak1du · · Score: 1

      One has to wonder what BayStar is expecting as a reaction to their being so... blunt.

      They aren't being blunt in any way that Darl McBride hasn't been blut before. BayStar probably expects that the market takes SCO's intellectual property claims more seriously, thereby boosting the value of their investment. Remember, they don't care about being liked, they care about money.

      Whether BayStar knows how unfounded SCO's IP claims actually are and they are just using it, or whether they actually think that SCO really has IP claims is anybody's guess. But, ultimately, it doesn't matter. Either way, I think they miscalculated.

    7. Re:Interesting CNN article as well by JDevers · · Score: 1

      http://slashdot.org/article.pl?sid=04/04/22/131925 5&mode=nested&tid=187&tid=88&tid=98&tid=99

    8. Re:Interesting CNN article as well by Jeff+DeMaagd · · Score: 1

      The thing is, that UNIX _IS_ the IP that SCO claims to have. SCO certainly can't create more intellectual property, and can only milk their claims so much without actually creating any new product.

    9. Re:Interesting CNN article as well by Jeff+DeMaagd · · Score: 1

      I should clarify, SCO isn't creating any more IP, isn't creating much, if any, new product that I can tell. Baystar's push would only seem to be one that they try to cash in the value as much as possible before shutting down the company.

      A lot of the good companies create intellectual property along side actual products, and make money from a steady stream of patents and such. They don't rest on their laurels because the value of that ownership goes down over time, and they need new product to replace fading income.

    10. Re:Interesting CNN article as well by Citizen+of+Earth · · Score: 1

      Here's hoping Darl gets ousted.

      I hope he doesn't. It'd be like assassinating Hitler in the last few months of the war. (Ha ha, Hitler reference.) If the allies had done that, then there would have been a significant danger that someone not totally incompetent would have taken over and the war might have lasted longer or maybe Germany would even have won and consolidated Europe. Best to leave idiot enemy leaders in their place.

    11. Re:Interesting CNN article as well by Citizen+of+Earth · · Score: 1

      All I know about Bush is I had a job when Clinton was president.

      If you're silly enough to believe that, then you should also blame Clinton for the dot-com meltdown that cost you your job, as if presidents have any real control over the economy anyway.

  6. Business is All About Money by osewa77 · · Score: 4, Insightful

    Let's face it, business is about money. If some companies believe in "doing no evil", it's simply because, in the opinion of the founders/managers, "doing no evil" is a good way to make money. On the long term, though, pissing everybody off is probably not a viable business strategy. Sometimes you work yourself into a corner (like SCO has) and you keep making the wrong decisions in the hope that everything will turn out fine in the end.

    1. Re:Business is All About Money by Anonymous Coward · · Score: 4, Insightful

      Companies are founded by *real people*, people like you and me. Sometimes, these people have morals they consider more important than making money. It's been known to happen.

      It won't happen any more once the company is public, but that's another story.

    2. Re:Business is All About Money by peeping_Thomist · · Score: 1
      If some companies believe in "doing no evil", it's simply because, in the opinion of the founders/managers, "doing no evil" is a good way to make money.



      I call bullshit. The fact that some or even many companies make decisions a certain way does not entail that they all do.

      --
      Anything worth doing is worth doing badly -- G.K. Chesterton
    3. Re:Business is All About Money by danila · · Score: 2, Informative

      Sometimes you have owners who care about the business (ad in product and customers) first and about the money second. As long as they can keep the company profitable, they can continue to do things as they like. Only public companies where a large fraction of shares is traded on open markets are forced to make money at all costs.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
    4. Re:Business is All About Money by firewrought · · Score: 3, Interesting
      Let's face it, business is about money. If some companies believe in "doing no evil", it's simply because, in the opinion of the founders/managers, "doing no evil" is a good way to make money.

      Let's face it, life is about pleasure. If some individual believes in "doing no evil", it's simply because, in the opinion of the individual's intellect, "doing no evil" is a good way to make pleasure. On the long term, pissing everybody off is probably not a viable pleasure strategy.

      Seems like a good summary to me. Humans can do evil too. Why do many slashdotters seem to almost excuse corporations for being ruthless in the pursuit of their goals? Why it is presumed that the same social criticism we apply to individuals cannot be levied at corporations to pressure them to conform to acceptable business practices?

      Perhaps we need some sort of "afterlife for corporations" concept to keep them on the straight and narrow... :-)

      --
      -1, Too Many Layers Of Abstraction
    5. Re:Business is All About Money by cdrguru · · Score: 2, Funny

      I believe the IRS calls businesses like you describe "hobbies" as they have no intention of being profitable.

    6. Re:Business is All About Money by innocent_white_lamb · · Score: 1

      Not necessarily. There are many so-called "ethical" mutual funds and the like, each one with its own definiton of ethical, of course.

      --
      If you're a zombie and you know it, bite your friend!
    7. Re:Business is All About Money by Lord_Dweomer · · Score: 1
      *cough*Google*cough*

      --
      Buy Steampunk Clothing Online!
    8. Re:Business is All About Money by Citizen+of+Earth · · Score: 1

      On the long term, though, pissing everybody off is probably not a viable business strategy. Sometimes you work yourself into a corner (like SCO has) and you keep making the wrong decisions in the hope that everything will turn out fine in the end.

      What does it matter? They were toast anyway. If they had have stuck to business as usual instead of launching bogus lawsuits, they would have been bankrupt and liquidated months ago. At least this way, they are still in business and the insiders have cashed out nicely.

  7. Translation by Anonymous Coward · · Score: 1, Funny

    > "We're looking for the best return we can, and we think the
    > focus should be on IP licensing (and enforcement)"

    This means in reality:

    "We're patsies who believe any old crap people tell us. come to us, ask us to invest, make up a story and if it has big enough dollars at the end we'll give you heaps to get you started"

    I'm contacting baystar with my idea of suing the president for presidency, because I SECRETLY won the last election, just nobody knows about it. I'm assured of victory. Trust me

    Would I lie?

    1. Re:Translation by Orgazmus · · Score: 1

      Like anyone else wanting presidency, I guess you would lie.

      --
      The system had the verbosity of HTML combined with all the readability of compiled assembly viewed as bitmap images
    2. Re:Translation by Trolling4Dollars · · Score: 1

      You are so close brother Orgazmus. However, it is a well know fact that the Hitchhiker's Guide to the Galaxy states that nothing makes a better politician than the problem of complete insanity.

    3. Re:Translation by Drooling+Iguana · · Score: 1

      There's a hell of a lot more people than the president that you could sue. Just imagine all those people illegally profiting from your invention of the Internet!

      --
      ... I'm addicted to placebos
  8. See also. by eddy · · Score: 4, Insightful

    Investor softens stand on SCO

    "First on BayStar's list is new top-level management, a directive that sources privately confirmed called for the resignation or reassignment of Darl McBride, SCO's outspoken, occasionally vitriolic president and chief executive."

    Interpretation: BayStar wants McDarling gone because his big mouth is sinking the ship.

    --
    Belief is the currency of delusion.
    1. Re:See also. by Orgazmus · · Score: 4, Interesting

      Thats funny.
      When the slashdot crowd are actually starting to like Darl for sinking the ship, THEN its a good idea to get rid of him.

      --
      The system had the verbosity of HTML combined with all the readability of compiled assembly viewed as bitmap images
    2. Re:See also. by El_Ge_Ex · · Score: 2, Interesting

      Nah, they want him out because they believed every word he said and now realize their folly. ...didn't see that coming???....

      -B

    3. Re:See also. by eddy · · Score: 2, Interesting

      I disagree. If you read the articles where BayStar speak out, you'll see that they're still believers -- unless they're lying about being believers for some reason, but that's just a little too tinfoil-hatty for me this time.

      No, I actually think they're mad because McBride spends all his time travelling the world, with his big mouth, a big mouth that's hurting their chances (as it were) in court, and also all this talk about rebuilding the "core UNIX business".. BayStar wants none of that crap (and neither does anyone else, but let's not tell Darl).

      BayStar still believes!

      --
      Belief is the currency of delusion.
    4. Re:See also. by WhiteWolf666 · · Score: 3, Insightful

      I don't think that BayStar believes.

      They are an investment fund.

      They can't exactly say: "Uhh . . . . We screwed up. SCOX is a waste of money. They don't have anything, and they have never had anything."

      They invest with OPM (other people's money) after all.
      Instead, in a fairly civilized and classy fashion, Baystar says:
      "SCOX has violated our agreement. We don't think that SCOX is approaching this case in the correct fashion. Of course, if they had done what we had told them to, they would be wildly succesful, but since they haven't we want our money back, and then we should go our seperate ways. Unless, of course, they make these [impossible] changes, after all, we aren't bad guys"

      --
      WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
    5. Re:See also. by SpaceLifeForm · · Score: 1
      If you read the articles where BayStar speak out, you'll see that they're still believers -- unless they're lying about being believers for some reason, but that's just a little too tinfoil-hatty for me this time.

      <tinfoil^>

      This is a good way for MS to attempt to dis-associate themselves from this mess by having BayStar *appear* to *only* be in it for IP reasons. Baystar could be left to hang down the road also.

      </tinfoil^>

      --
      You are being MICROattacked, from various angles, in a SOFT manner.
  9. RBE by Aussie · · Score: 5, Informative

    Isn't RBE in for 30 million. thats more than Baystar.
    How can Baystar be the "biggest investor" ?

    1. Re:RBE by Aussie · · Score: 1

      make that RBC.

  10. going down by Sv-Manowar · · Score: 3, Informative

    April 21, 2004: SCO hires BertYoung as chief financial officer to replace RobertBench. Young's previous experience includes stints as CFO and COO of dot-bomb archetype marchFIRST. Obviously need a financial officer who will get them out of the trouble they have got themselves into Read more - http://sco.iwethey.org/

  11. a question for BayStar by linuxislandsucks · · Score: 1

    So let me get thsi straight..

    You were convinced by MS ot invest in SCO despite them havign no IT Ligation exp in IP lawsuits on the basis of what as theri Unix business is dead?

    That is the biggest msoke screen I have seen form any VC firm

    ignore the FUD folks..a buyout from MS is brewing I think..

    --
    Don't Tread on OpenSource
    1. Re:a question for BayStar by 0x0d0a · · Score: 4, Insightful

      You were convinced by MS ot invest in SCO despite them havign no IT Ligation exp in IP lawsuits on the basis of what as theri Unix business is dead?

      While Darl and friends really *aren't* the most ept at IP litigation (view the numerous mistakes made), and both Darl and Baystar pretty well qualify as scum (trying to push a set of claims that everyone involved pretty clearly knows is bogus, and en route damaging a project that tens of thousands of very bright people have built with their volunteer time), I doubt that Baystar is *really* thinking that they have a chance if senior management is switched at SCO.

      It's not that uncommon to throw the CEO to the wolves (by which I mean "let go with a golden parachute to seek employment elsewhere") when things go sour, whether it's his fault or not.

      The claim "focus less on UNIX and more on litigation" is, from what I know, pretty silly. SCO has been doing jack for their UNIX properties already -- Baystar may just be putting up a front of "we knew the right thing to do, SCO was a good investment, but their management screwed it up".

      Oh, and as for people who say "they're only in it for the money" WRT Darl and Baystar -- yeah, no kidding. We formed a social and legal system that made money the sole master, where corporate executives are responsible only to shareholders, and only to increasing stock value. There is no provision in our legal system for, say, gross unethical action. Darl and all the MBAs and lawyers involved are doing *exactly* what we've chosen to have society reward them for. It's hard to complain when they do exactly that. If we want them to do something else, we need to make provision for that in law.

    2. Re:a question for BayStar by DannyO152 · · Score: 1

      Something's in the works. Baystar and SCO are not on the same page as far as how Baystar will receive its most value out of the situation. Baystar cannot be so foolish as to think that changing the CEO would make (a) the lawsuits resolve faster or (b) Linux users cough up $700 per "server" CPU and enter into a contract with SCO (thereby inviting SCO's nose into their business). As for a Microsoft (or any) buyout, it maybe gives Baystar a return on investment, but the new owners of SCO are still on the hook for Lanham Act claims by IBM and RedHat. They are still involved in a battle with Novell over, essentially, the right to even think about suing users and distributors of Linux, FreeBSD or other Unix operating systems. And the new owners, for their millions, will acquire the unmitigated joy of an IP battle with IBM.

      Perhaps these Baystar pronouncements are understandable as a negotiation position for Canopy's consideration: our 20 mill now and we go away, otherwise, your execs are going down.

    3. Re:a question for BayStar by toomuchPerl · · Score: 1

      Just curious, exactly how drunk were you when you wrote that post?

      thsi .... ot ... havign .. Ligation ... theri .. msoke.. form.. :)
      (ducks)
      -toomuchPerl

  12. The world is full of rich scummy lawyers... by dickiedoodles · · Score: 1

    The world is full of rich scummy lawyers suing everyone for anything

    News at 11

    --
    In Soviet Russia Slashdot cliches use you
    1. Re:The world is full of rich scummy lawyers... by mumpster · · Score: 1

      Hm, as a man lived in Soviet Russia (the USSR), I can't recollect this cliche. Standard cliche was a fat capitalist dressed in black smoking with a big cigar in teeth.:-) Never mind though.

  13. Unbelievable! by haxeh · · Score: 5, Insightful

    But not nearly as unbelievable as it sounds. Like any 'good' software company, they believe their value lies in their IP, which it does. SCO seems to feel that people have infringed on their IP significantly enough for them to make a business out of taking money back from those whole 'stole' from them.

    This in itself isn't really that horrible, because they're just updating their business model to profit off of all the supposed stealing thats been going on. That is, if they could somehow get licensing fees from everyone running linux, that'd be a viable business.

    Of course, because it's SCO, no one really stole anything (as far as we can tell). And that's what makes them evil: making false accusations about infringement to drive stock price up, not pursuing what is rightfully theirs under the law.

    The reaction shouldn't be "omg! software company thinks their IP is valuable!" it should be "omg! software company is making outrageous claims about what they own!"

    1. Re:Unbelievable! by dollargonzo · · Score: 2, Insightful

      another note: in many a software company, most of the money is made off of renewed run-time licenses, not sales or support. unless you are selling software that joe sixpack needs, you are going to have a few big customers who keep you alive from year to year and then a bunch of smaller fish that generate some extra revenue. valuing your IP is one of the few ways to make money in the industry. sure, there exist a few OSS companies that manage after many years to break even, but these are exception, not the rule.

      i agree with parent why they are evil. if they actually *did* rightfully and morally own unix, then they should by all means protect it.

      --
      BSD is for people who love UNIX. Linux is for those who hate Microsoft.
    2. Re:Unbelievable! by whovian · · Score: 1

      in many a software company, most of the money is made off of renewed run-time licenses, not sales or support.

      *cough*Forgent*cough*

      Seriously, getting your income solely from licensing and suing the dickens out of others is all that's left once lack of innovation and/or vendor-lock take hold. It puts real progress squarely in the court of GPL. Just MHO as a user.

      --
      To-do List: Receive telemarketing call during a tornado warning. Check.
    3. Re:Unbelievable! by Peaker · · Score: 1

      From my experience, good software companies do not think their value lies in their IP. Good software companies think their value lies in their people.

    4. Re:Unbelievable! by dollargonzo · · Score: 1

      wait a minute there! there is a difference between suing other companies and selling run-time licenses for software that YOU WROTE.

      --
      BSD is for people who love UNIX. Linux is for those who hate Microsoft.
  14. the biggest con SCO pulled off so far... by ecalkin · · Score: 5, Interesting

    may be against Baystar. i would assume that a capital investment company, especially one that invests in IP would do a complete and comprehensive evaluation of what they are investing in. which leads me to this: SCO painted a picture with *so* much recovery (lawsuit/licensing revenue) that it blinded them to the reality of situation.

    one hopes that when the countersuits start flying that baystar is named as a defendant right under sco.

    eric

    1. Re:the biggest con SCO pulled off so far... by thales · · Score: 2, Insightful

      "i would assume that a capital investment company, especially one that invests in IP would do a complete and comprehensive evaluation of what they are investing in"

      Why would you expect this after seeing investors pour money into dot.coms without checking them out just a few years ago? Many investors will throw money at whwtever they think the latest "Hot Thing" (TM) is without a second thought, and IP lawsiuts seem to be the latest "Hot Thing" (TM).

      --
      Quemadmodum gladius neminem occidit, occidentis telum est
    2. Re:the biggest con SCO pulled off so far... by peragrin · · Score: 1

      The problem is they painted such a big picture that Baystar only wants that bg picture. Baystar wants SCO only to invest in IP stuff. You know the point where SCO colect $20,000 in revnue for 3.4 million in exspenses. you know where when someone actually admitted that they bought a license they were bullied and lost business.

      Yes I know EV1 gained customers that quarter, then again their competitors gained even more, and EV1 had just opened a new win2k3 datacenter.

      --
      i thought once I was found, but it was only a dream.
    3. Re:the biggest con SCO pulled off so far... by MyHair · · Score: 1

      I can't figure out if Baystar is wanting to pull their money back or if they are pulling puppet strings to get their agenda implemented at SCO. (I'm not necessarily talking MS conspiracy here, just a nonmanaging investor effectively enforcing its own policy via financial pressure.)

      It is still odd to me that SCO first released the redemption claim. I sometimes wonder if that was to spite Baystar in a behind-the-scenes battle for power; my theory being that Baystar didn't want to be have their investment discussions thrust into the public but are now interviewing for PR damage control. In other words: Baystar pressures SCO, SCO resists, Baystar issues redemption claim to persuade, SCO gets pissed and publicizes the claim to hurt Baystar's reputation as a VC company, Baystar spins that they are unhappy with how SCO management has proceeded with the original plan and hints and has unnamed confirmations that Baystar wants changes in SCO upper management. Next move?

      In a post after the redemption claim was released but before the Baystar interviews I predicted that the stock would be spun back up for a while before it crashed comletely in two weeks to a few months. It did go up, but I'm no longer sure it will crash completely so soon. It might, or SCO may have an upper-management transplant and contniue some or all of the legal battles for a year or more.

      I just realized something: Baystar and RBC don't have to have SCO win to make money. They just need their converted shares to be worth more at some point in the future and then sell them, yes? So Baystar may well be happy with an unwinnable case as long as the stock price can be painted and spun and speculated up to a point where they can dump profitably. This whole Baystar redemption thing may just be an internal power struggle turned public by the weaker party.

    4. Re:the biggest con SCO pulled off so far... by DerekLyons · · Score: 1
      may be against Baystar. i would assume that a capital investment company, especially one that invests in IP would do a complete and comprehensive evaluation of what they are investing in. which leads me to this: SCO painted a picture with *so* much recovery (lawsuit/licensing revenue) that it blinded them to the reality of situation.
      It's very likely that they did. Don't forget that SCO's "wrongdoing" is a slashgeek assumption, not a foregone fact. That the case has gone on so long, and that IBM is having to widen it's subpoena net leads me to think that their may be more to the case than meets the eye.
    5. Re:the biggest con SCO pulled off so far... by Syrrh · · Score: 1

      Nah, there's no reason to drag BayStar over the coals for this. Heck, SCO already WAS dumping everything for IP payoffs. Now it's becoming painfully clear how botched this plan was, but there's not much of an escape hatch for venture capitalists. I'd bet what Baystar really, really, pretty-please wants is to cut and run before they end up losing their entire investment. So they throw out demands that may be ignored (boot the execs), in hopes that they can escape a total loss.

      Of course they're also going to push for the IP lawsuits as a desparate Plan B, it's the only way SCO will make significant returns to pay off their investment before the company's worth has dried up and they fold.

  15. Ha by mfh · · Score: 1

    > they believe SCO's only viable asset is the potential proceeds of lawsuits against Linux users and vendors

    This should likely only say vendors. Vendors using Linux are ripe for the picking, right Darl? Ah, but potential is never quite the same as reality, and that's the problem with SCO's claims... they are rooted in a fantasy.

    --
    The dangers of knowledge trigger emotional distress in human beings.
  16. My God! by Pan+T.+Hose · · Score: 3, Funny

    My God! SCO's Biggest Investor Admits It Loves IP Lawsuits?! I am shocked! Shocked, I say!

    --
    Sincerely,
    Pan Tarhei Hosé, PhD.
    "Homo sum et cogito ergo odi profanum vulgus et libido."
    1. Re:My God! by Nuclear+Elephant · · Score: 1

      I thought Microsoft was secretly SCO's biggest investor, at least that's what everyone else still believes.

    2. Re:My God! by Mister+Transistor · · Score: 1

      Yeah, amazing. That's like saying "News Flash: Bill Gates Loves Money. Film at 11".

      --
      -- You are in a maze of little, twisty passages, all different... --
  17. Simple economics by truG33k · · Score: 2, Insightful

    They are only thinking of one factor here, return on investment. Simple economic theory is to put your money where it will grow the fastest. I mean really, who would by SCO!!! BayStar is just looking to get as much money as it can from a bad investment before it goes under, nothing more.

    The flip side to this coin is that SCO might actually think that they have one friend in this fight, when actually, they trying to cover their own ass[ets]

    --
    You only live once, so you might as well have fun before you die.
  18. Maybe if SCO owned something to enforce by tiny69 · · Score: 5, Insightful
    A Baystar Capital spokesperson has finally admitted, directly and on the record to NewsForge reporter Chris Preimesberger, that they believe SCO's only viable asset is the potential proceeds of lawsuits against Linux users and vendors. 'We're looking for the best return we can, and we think the focus should be on IP licensing (and enforcement),' said BayStar spokesman Bob McGrath.
    That might be true if SCO actually owned something in UNIX that they could enforce. But Novell owns the copyrights, The Open Group owns the trademark, and SCO doesn't hold any patents on UNIX. Not to mention that 95% of the profits from licensing enforcement that they currently do goes directly to Novell.
    --
    Go not unto/. for advice, for you will be told both yea and nay (but have nothing to do with the question)
  19. Going for a new record? by juuri · · Score: 1, Informative

    Did you even read the first four or five words of the story summary before posting?

    --
    --- I do not moderate.
  20. Den of Lawyers? by handy_vandal · · Score: 1

    The world is full of rich scummy lawyers suing everyone for anything.

    It's tempting to say:

    Those rich scummy lawyers are not distributed evenly. A disproportionate number of them live in America, the Land of Litigation.

    However, according to this article, it's just not true.

    -kgj

    --
    -kgj
  21. You're fired! by malia8888 · · Score: 4, Insightful
    From the article: BayStar Capital of Larkspur, Calif., a private hedge fund which invested $20 million in the SCO Group last October and then called the loan back last week, told NewsForge Thursday that it doesn't believe SCO's senior management is experienced enough in IT litigation to fully reap the financial benefits from the company's intellectual property.

    Sounds like there is somebody in senior managment who is just not suing fast enough or well enough to suit Baystar Capital. It is an odd state of affairs when a company, other than a law firm's, most important product is law suits. That's messed up, dudes. :P

    --
    Harpo Tunnel Syndrome--my wrist feels funny.
  22. Same? by mfh · · Score: 1

    I thought BayStar was in for the same ammt as RBC. Dunno, but the RBC is the largest earner in Canada. One year they made about $4bil profit... and I saw a kid pan-handling in front of one of the RBC branches. *sigh*

    --
    The dangers of knowledge trigger emotional distress in human beings.
    1. Re:Same? by gmack · · Score: 4, Informative

      Baystar chipped in $20 Million and RBC chipped in $30 million.

      PS. As for the pan handler a good location can make them $30+ an hour on a good day here in Montreal And that's tax free. Don't feel sorry for his/her lack of income.. feel sorry about whatever addiction it's all blown on.

    2. Re:Same? by Citizen+of+Earth · · Score: 1

      As for the pan handler a good location can make them $30+ an hour on a good day here in Montreal And that's tax free.

      No, it isn't. You are required to report all income on your return, including pan handling, crime, prostitution, etc. What, you mean that bums don't file income-tax returns? They could clean up the streets by throwing them all in jail for income-tax evasion.

  23. Next in Business News by ACK!! · · Score: 1

    We find out that Microsoft's investors like profits.

    Duh.

    Its all SCO has. The lawsuits are all they have left.

    +

    --
    ACK /ak/ interj. 2. [from the comic strip "Bloom County"] An exclamation of surprised disgust, esp. i
  24. Baystar? by AtariAmarok · · Score: 1

    Not bad for a company that sounds like a cross between a David Hasselhoff TV show and a Ford minivan. Is it named after Frisco Bay, or located in the Frisco area?

    --
    Don't blame Durga. I voted for Centauri.
  25. New line of business by bmiller949 · · Score: 3, Funny

    I think they should move from SCO to the Red Cross. The Red Cross could use someone who could miraculously get blood out of a turnip.

    --
    <sig>no sig</sig>
  26. And that, in a nutshell... by arvindn · · Score: 4, Insightful

    ...is the problem with capitalism. The theory behind it is that when everyone chooses an optimally greedy strategy, society as a whole benefits. But you have cases like this where society clearly does not benefit, and countless hours of everyone's time are wasted. If the legal system were perfect, perhaps, then everything would be fine. But in practice it never is. My point is that people should be eternally vigilant rather than have blind faith in the system, which I perceive many Americans to have. And oh, another observation, don't confuse capitalism with the free market; the latter is unconditionally good, but the former is a double edged sword and needs a lot of checks and balances.

    1. Re:And that, in a nutshell... by NineNine · · Score: 2, Insightful

      There are a few cases in which capitalsm does not work, true. But in case you haven't noticed, the most capitalistic societies in the world are also the most successful, and their people tend to have the highest standards of living. Overall, Capitalism has been shown throughout history to be a huge success.

    2. Re:And that, in a nutshell... by arvindn · · Score: 1

      I don't deny it. I'm not opposed to capitalism. But as I said in my original post, we have to be eternally vigilant.

    3. Re:And that, in a nutshell... by Citizen+of+Earth · · Score: 1

      And oh, another observation, don't confuse capitalism with the free market; the latter is unconditionally good, but the former is a double edged sword and needs a lot of checks and balances.

      You seem to be confusing theory and practice. Both capitalism and the free market are theories for the same thing. However, any realization of a theory in the world of humans needs lots of checks and balances. Even Communism is an ethical system in theory.

  27. Sounds like gambling to me by Extra+Ketchup · · Score: 3, Insightful

    The fact that Baystar wants to "bet" so much money on a case that is not just up in the air, but leaning strongly in favor of IBM and Linux users, makes me think Baystar would be just as far ahead to take their 20M to Vegas and roll the dice.

    Now that they've placed their bet, they should lose it. Nobody places a bet on a horse and then asks for their money back halfway through the race just because the horse is lame and the jockey is, well, Daryl McBride :-)

    -EK

    Disclaimer - I don't gamble, nor do I promote gambling

    1. Re:Sounds like gambling to me by Bohemoth2 · · Score: 1

      I agree they'd have a better chance if they took it to vegas and bet on red. They've got to be ultra greedy ultra gullible morons that got abducted by aliens for the past 2.5 years and so didn't experience the dot bomb.

  28. No shocker by A.T.+Hun · · Score: 5, Insightful

    There is nothing else that SCO has that is even remotely valuable. Nobody is going to want their outdated Unix anymore, especially since they'd be sued if they even looked cross-eyed at Linux. Suing your customers tends to drop ye olde customer satisfaction rating down quite a bit. The only way BayStar will come close to recouping their $20 million is if SCO survives long enough to win its suits. Both of those prospects are dubious at best. I think the big thing that BayStar (and others) will be learning is not to take investment advice from Microsoft.

  29. Grrr.... by Trolling4Dollars · · Score: 2, Funny

    ...no one is going to sell my bridge!!! I've spent a good deal of time making a nice home under here. Grrr... ;P

    1. Re:Grrr.... by Drooling+Iguana · · Score: 1

      There needs to be a +1: Troll moderation option...

      --
      ... I'm addicted to placebos
  30. Capitalism and the free market go together by Anonymous Coward · · Score: 1
    "don't confuse capitalism with the free market"

    The two are pretty much interchangable. Capitalism is the result of market freedom in which people are able to do what they want with their own goods/services/etc.

    "The theory behind it is that when everyone chooses an optimally greedy strategy"

    Capitalism is based on productivity through work/effort, not "greed".

  31. Any mistake by southern · · Score: 2, Interesting

    Any public mistake a hedge fund makes, usally means the end to the hedge fund. Their multimillion dollar investors won't stand for this and will start moving their money to one of the many other hedge funds.

    Hedge funds are in the business of making money, and I would bet the Baystar has same amount of money invested in Open Source companies.

    Hedge Fund don't lose money, they just make less.

    --
    Chris Southern
  32. This isn't such a strange idea... by RecoveredMarketroid · · Score: 5, Insightful
    Now, I'm ABSOLUTELY not a fan of SCO's. But the basic IDEA expressed here is not such a strange one. Essentially, a company has two choices:
    1. Try to make money off that which you own and which is already developed, or
    2. Try to develop new profitable products/technology.

    Option 2 is expensive and risky by comparison. Sure, you want to develop new products, but if you are not milking what you can out of the existing ones, then there is no point in developing new ones! Management is being (criminally) negligent if it doesn't pursue option 1. LOTS of companies make money this way by licensing technology. If SCO does have a basis (or management believes it has a basis) for these claims, then management has an obligation to pursue this course.

    The really interesting points here, however, are:

    • That they are explicitly stating they believe SCO is incapable of surviving by option 2!
    • Many non-technical people don't understand what a crock SCO's case appears to be. While the investors may just be cynical/evil, it seems quite possible that the they BELIEVE that SCO's IP is legitimately being violated. (Perhaps, after the lawsuits fail, the investors may sue members of management for misrepresentation?)
    1. Re:This isn't such a strange idea... by Bohemoth2 · · Score: 1

      I agree they'd have a better chance if they took it to vegas and bet on red

  33. Linux supporters love McBride! by eddy · · Score: 5, Interesting

    >When the slashdot crowd are actually starting to like Darl for sinking the ship, THEN its a good idea to get rid of him.

    Not only is McBride our top pick for steering SCO into the ground (taking the investors with him) by using his large mouth to talk about "millions of lines of literal copying" that they have again failed to identify -- thereby again failing to comply to the court order to be specific (the next hearing will be very interesting. Will IBM finally ask for sanctions, or are they just too nice for that? :-) -- but he's also raiding the SCO coffers all by himself, lifting $968,000 out of the company last year! Almost a million dollars in salary+bonus from a business that's a COMPLETE FAILURE! Well, I guess it's not a complete failure if you count the core business as being 'stock scams', but let's just pretend they're a litigation company instead.

    McBride, we're on your side! Don't step down now -- You've got to ride this out (...and into that orange jumpsuit...).

    --
    Belief is the currency of delusion.
    1. Re:Linux supporters love McBride! by 0x0d0a · · Score: 4, Interesting

      Darl will never end up in jail over this. CEOs almost *never* go to jail for what their companies do. I was a little hopeful about fraud suits early on, but it looks like that isn't going to happen.

      I agree that McBride's screwups have helped things immensely.

    2. Re:Linux supporters love McBride! by LWATCDR · · Score: 1

      Frankly I see Darl going to a rubber room and not to a prison cell.
      Come on he is clearly nuts.
      On the brighter side odds are pretty good he will never work again after this.
      Right now the investment group are going to have to answer for the money the blew on this nut case. So they are in deep as well

      In late breaking news Girl Scouts a threat to malls http://www.tcpalm.com/tcp/local_news/article/0,165 1,TCP_16736_2821700,00.html

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    3. Re:Linux supporters love McBride! by Pig+Hogger · · Score: 1
      Frankly I see Darl going to a rubber room and not to a prison cell.
      Lamie? Is that you???
  34. No, that's just America. by Moderation+abuser · · Score: 2, Informative

    Did you know that America has far far more lawyers per 100,000 of the population than any other country in the world with something around 300 per 100,000. That number is increasing.

    I think Britain is second with somewhere around 90 per 100,000.

    --
    Government of the people, by corporate executives, for corporate profits.
  35. Always with the Doom & Gloom, he is... by Thunderstruck · · Score: 5, Interesting

    What are the social and legal effects of this kind of business going to create? In the unlikely event that SCO were to win big money for BayStar, other groups will begin to seek similar "investments." I see a progression here:

    1. Mutual funds and VC groups begin to seek out luctrative litigation opportunities.

    2. People begin to invest in these groups, because of the high rate of return. Skilled lawyers scour the land for untapped "violations" or negligence.

    3. The well begins to dry up. Investors need to keep the cash flowing in. but the only targets left don't carry enough cash to make them good targets. So they lobby the Federal Government to mandate the remaining targets to carry insurance.

    4. The risk is spread out, and we all pay more to keep BayStar's numbers in the black... with no social benefit whatsoever.

    5. Repeat, industry by industry.

    --
    Trying to use sarcasm in text-based forums does not work.
  36. Head I win, tails you lose by gtoomey · · Score: 4, Funny
    If you're a SCO customer like DaimlerChrysler and dont buy a linux licence, you get sued buy SCO and end up in a lawsuit.

    But if you buy a linux licence like EV1 did, you get a subpoena by IBM, and end up in a lawsuit.

    MORAL: Stay away from the Litigous Bastards

  37. Kingston, ON by mfh · · Score: 1

    In Kingston, Ontario (where I am) most pan-handlers are high school students cutting class, so the money would certainly go to partying of some kind. You can tell when pan-handlers from elsewhere come here to try and earn... they're broke as hell. I would think the most money anyone could make pan-handling in Kingston would be about $5/hr, during peak times.

    --
    The dangers of knowledge trigger emotional distress in human beings.
    1. Re:Kingston, ON by debrain · · Score: 1

      Kingston (where I am, too) has atrocious vagrancy problems, not totally unrelated to the centralization of federal prisons in the area, and lack of sustainable industry.

      In the summer the tourist industry is focused around Princess and the downtown area, and I gather it's possible to do fairly well pan-handling, or playing music on the street. It is non-taxable income, so $5/hr is really equivalent to $8/hr working, and I'd think that'd be a low ballpark figure for the summer (albeit perhaps a bit high for winter).

  38. Re:Grammar nazi by WatchMaster · · Score: 2, Informative


    The use of collective nouns as singular or plural depends on the country, just like spelling. In British english collective nouns are often considered plural, referring to the plurality of employees represented by BayStar.

  39. OK, let me get this straight... by weave · · Score: 4, Insightful
    The lawsuit is all about how IBM has allegedly caused great harm to SCO's Unix business, so they sue to recover damages. But Baystar tells them they have no real Unix business left anyway and should shut it down, but continue to sue anyway.

    Almost every legal analyst says SCO chances to win are slim to none, yet for some reason, people are still investing in this stock. They'd have equal risk but higher payoff potential if they'd sink their money into the Powerball lottery.

  40. Litigation the best way to earn a buck by theAmazing10.t · · Score: 1
    "I love the smell of a law suit in the morning, it smells like victory"

    "Law suits. When you can't make money any other way"

  41. Not enough focus on lawsuits? by Kjella · · Score: 4, Insightful

    Given that this is SCO, I imagine they'll:
    a) Drop the current charges against IBM.
    b) Make some new and even more vague charges.
    c) Raise lawsuit to 10 billion dollars.

    While SCO may be able to scare away people from switching to Linux, with all the defense funds that have been popping up, I strongly doubt they'll be able to scare any current users into licencing their IP. Baystar will never see any money from it.

    The only one laughing all the way to the bank is Microsoft. I'm sure they love this spin from Baystar "This Linux lawsuit is what has value! Screw the rest, this is the goldmine" when in fact, it's a bloody weak card against a giant in IP. The remaining business is simply even worse.

    Kjella

    --
    Live today, because you never know what tomorrow brings
    1. Re:Not enough focus on lawsuits? by hendridm · · Score: 1

      The question is, if SCO dropped their suit against IBM, would IBM drop its counter suit? I doubt it. Nobody fscks with the Jesus.

    2. Re:Not enough focus on lawsuits? by Lord_Dweomer · · Score: 1
      "a) Drop the current charges against IBM."

      Do you really think this will stop IBM from going after them?

      If you poke the 800lb gorilla in the ass with a pointed stick, he won't just forget about you if you throw away the stick.

      --
      Buy Steampunk Clothing Online!
  42. And it doesn't even matter if they DO own ... by debest · · Score: 2, Insightful

    the copyrights to UNIX System V. Not as far as Linux is concerned, anyways.

    I suppose there is a chance that IBM could be found liable for breaking some contract provision they had with SCO over UNIX code. Perhaps some of that code may have even found its way illegally into Linux (although absolutely zero proof has been presented as yet).

    The bottom line is that SCO will never see Linux users pay licensing fees to them for their IP because the WHOLE POINT of free software that the code is free! If any code is found legally infringing, it will be gone and replaced with restriction-free code.

    Persuing a business model of getting licensing fees from free software is a complete non-starter: it will never work! Baystar (and RBC) are either completely oblivious to this fact, or are acting on MS's behalf to slow Linux's adoption. Perhaps both.

    --
    Look at the tomato! Isn't it sad? He can't dance! Poor tomato!
  43. Re:From the land of incorrect spellings. by Jim+Starx · · Score: 1

    They didn't add the 'u', we took it out.

    --
    The darkness... controls the music. The music... controls the soul.
  44. What's that have to do with the case? by jamonterrell · · Score: 3, Funny

    It seems like anyone's not liking of criminal mismanagement and Pump-And-Dump rules would trump their like of IP lawsuits...

    I wonder if they'll let Darl share cells with Martha Stewart?

    --
    I can count to 1023 on my hands. Ask me about #132.
  45. They have a good point by gilesjuk · · Score: 1

    SCO Unix is behind the times and they know they're losing customers to Linux, Sun and Microsoft. So instead of being creative and coming up with new products they've decided to take the easier strategy of suing their competitors to syphon off some of their hard earned cash.

  46. Great business plan by Trailer+Trash · · Score: 1

    Now if only SCO can either create or acquire something of value to license, they'll be able to pull it off...

  47. Hypocrisy by waskyo · · Score: 1

    How stupid and evil. What vision of live does this guy have ?!

  48. Re:Interesting CNN article as well -rejected yest. by kcurtis · · Score: 1

    I offered the CNN story yesterday -

    SCO Investor wants its money back - Friday April 23, @03:14PM - Rejected

    Basically, they already asked for their money back. But it seems they will agree to huge changes where SCO goes for more litigation cash.

    The parent should be modded up - the CNN/AP story is informative.

  49. Slashdot does the same thing as SCO by NineNine · · Score: 3, Insightful

    From VA Linux's most recent 10Q filing with the SEC:
    We rely on a combination of copyright, trademark and trade-secret laws, employee and third-party nondisclosure agreements, and other arrangements to protect our proprietary rights.

    1. Re:Slashdot does the same thing as SCO by Kalak · · Score: 3, Insightful

      There's hardly a for-profit that doesn't do this. Thinkgeek has copyrights, and possibly some patents, Sourceforge has software for sale, and there are probably more examples.

      What you don't see is VA Linux suing people or companies while refusing to show what they are suing over. It's a *business* afterall. Businesses can be good citizens, or bad bullies (and shades in between). Just because VA Linux uses NDAs (standard in the industry), copyright and patents (they sell stuff afterall) and trade-secrets (to protect what they are working on) does not mean they are SCO, or even in their ball park. The develop and deliver more products than lawsuits.

      Heck, I'm using /. and the only thing they get out of me are page views and the occasional click through on an ad. Thinkgeek has gotten my money though - some of those shirts are just too good to not wear to work and "you will be replaced by a small shell script" has become a popular phrase where I work. Hardly sounds like a evil company, but one that does make their money off of IP.

      --
      I am, and always will be, an idiot. Karma: Coma (mostly effected by .hack)
    2. Re:Slashdot does the same thing as SCO by _Sprocket_ · · Score: 1


      Slashdot does the same thing as SCO


      Wow. What a scoop. Could you point to the filings of Slashdot's (or VA Software - I know you keep missing the fact that they changed their name) lawsuits? The letters they sent out requesting licensing fees for software of which they have a murky claim of ownership? The public statements claiming that a particular form of software licensing is unconstitutional and destructive to the entire industry?

      Or are you simply trying to point out that both Slashdot's parent company and SCO are businesses? If that's your point, you might be kind of right. Yes. They're both businesses. They both make use of the same laws and legal devices.

      But SCO and VA Software behave very differently. They are not, even remotely, doing the same thing.
  50. Capitalism and corporations by Anonymous Coward · · Score: 1, Insightful
    "Can you have free markets and capitalism without corporations?

    Nope. If you have banned corporations, you can't have a free market, or free capitalism. Corporations are nothing other than voluntary organizations where people get together to further economic or other goals. Things aren't very free if you ban these.

    1. Re:Capitalism and corporations by arvindn · · Score: 1
      You are horribly wrong. This is exactly the kind of confusion I was addressing with my original post. Corporations are entities with great (economic) powers (and relatively little responsibility, and certainly no eithics) that exist only because the law recognizes them. "Banning corporations" is soooo nonsensical because by default, corporations don't exist. They are far more than voluntary associations of people.

      Corporations are the bedrock of capitalism. But there's no reason they are necessary in a free market.

      Again, I'm not opposed to capitalism, just pointing out that vigilance is required, because it is very easy for power to be abused by corporations.

    2. Re:Capitalism and corporations by 16K+Ram+Pack · · Score: 1
      Define capitalism. If you have a look at the entry on Wikipedia, there are numerous definitions.

      The big difference between capitalism and free markets is the idea of investment, that you can invest in business on a risk/return basis.

      However, there are tens of thousands of businesses like this, some employing very small numbers of people with no major influence.

      What you maybe mean is corporatism, where corporations do not simply trade in a market, but distort the rules of the market to their own ends either through political influence, trade controls or bullying. Which is IMO the opposite of a free market.

    3. Re:Capitalism and corporations by Citizen+of+Earth · · Score: 1

      What you maybe mean is corporatism, where corporations do not simply trade in a market, but distort the rules of the market to their own ends either through political influence, trade controls or bullying.

      This would be "monopolization".

    4. Re:Capitalism and corporations by Citizen+of+Earth · · Score: 1

      Corporations are the bedrock of capitalism. But there's no reason they are necessary in a free market.

      Corporations, or something very much like them, are required for any realization of a free market. You seem to be thinking that a free market means that consumers can freely choose what products and services they consume, but it also means that suppliers can freely choose what products and services they offer. Without free suppliers, there is not free market.

      What is the alternative to corporations? The government? Well, that's Communism instead of Capitalism and various experiments have shown that it is not sustainable in reality. Individual workers? They cannot make anything very complicated. Roving bands of programmers on the Internet? They can make good software, but I don't think they can manufacture very good microwave ovens.

  51. Darl Ousting by Mistlefoot · · Score: 2, Funny

    Something tells me that if they oust Darl he'll.......

    Sue.

    1. Re:Darl Ousting by AndroidCat · · Score: 1

      No surprise there. He sued his last employer. I guess they maybe asked him about that during the job interview?

      --
      One line blog. I hear that they're called Twitters now.
  52. Time fixes everything.. by segfault_0 · · Score: 5, Interesting

    I personally find it relieving to see truth start to poke its head into play. This is why IBMs game plan is so strong, patience is a virtue, and they are execizing their power in a calm and controlled fashion. The key to a good lie is being able to use the lie and then put it behind you; SCOs lies and fabrications can't stand up to the light of this kind of media attention forever and now we see the curtain coming down. I dont think they realized how difficult continued deception can really be.

    --

    I was crazy back when being crazy really meant something. (Charles Manson)
  53. Grrr!!!! by Chexsum · · Score: 2, Funny

    It is my bridge and I am its troll you cannot live here without paying the toll.

    [burn karma burn]

    --
    Pixels keep you awake!
  54. Recommendation to sell.. anonymously? by bo0ork · · Score: 4, Interesting
    Used to be, checking out SCOX on nasdaq would show two firms with conflicting recommendations. Niether were anonymous, though I can't recall which ones... One recommended "Buy", and another one "Sell". Now, only one firm recommends anything, and that's a "Sell". And that one have requested anonymity.

    I wonder why they want to be anonymous? The recommendation.

    --
    Does everything include nothing?
  55. Fellow Kingstonian by mfh · · Score: 1

    > Kingston (where I am, too) has atrocious vagrancy problems

    I would have to agree. It's really sad.

    > not totally unrelated to the centralization of federal prisons in the area

    My experience is that most ex-cons flee the city after being released, because they don't wish to stick around. I guess some stay, but for the most part they depart.

    > lack of sustainable industry.

    This is likely the real problem. Kingston's ecconomy is terrible, due mostly to the corruption of city officials, from what I can tell. Remember the Tall Ships fiasco? They spent thousands on food, and lost $700k on that one. Not sure where it went, but it went. Also, Block D! I've never heard of a lot like that anywhere in the world, where countless opportunities for development have been thwarted by locals wishing to keep their view of the harbour. It's really a sad state of affairs. Any time a developer has come to develop Block D, they have lost their shirts or just barely escaped with a huge loss of profit. Then there was the whole Memorial Centre fiasco with that famous Las Vegas singer, that only drew about 700 tickets. They were expecting thousands! Oh and when CCR played a reunion concert, the Kingston City Council decided not to back it; the concert was a huge success anyway! I was there man, and let me just say that CCR totally ROCKED. The City had a chance to recoup losses from the previous disaster and they opted out from backing CCR out of fear, or perhaps stupidity in motion.

    > In the summer the tourist industry is focused around Princess and the downtown area, and I gather it's possible to do fairly well pan-handling, or playing music on the street.

    Personally, I think that relying on the charity of others is a hard sell. Buskers make a lot of money because they are entertaining, but what about the ones that just suck? There are plenty of those trying to merely exist. The noise!

    > It is non-taxable income, so $5/hr is really equivalent to $8/hr working, and I'd think that'd be a low ballpark figure for the summer (albeit perhaps a bit high for winter).

    Agreed. Winter on the street would be damn hard in Kingston. Summer, would be easier but still very difficult. If I was homeless, I'd cross the border and head for Florida (and lose my ID on the way).

    --
    The dangers of knowledge trigger emotional distress in human beings.
  56. Essentially... by Anonymous Coward · · Score: 2, Insightful

    Bloodbath McGrath is telling SCO: Dump all your products, because they're worthless, and concentrate on suing people.

  57. Really? by miffo.swe · · Score: 2, Insightful

    Isnt it a bit strange to have a company litigating for a business (Laywers included)? What overall value does a litigation bring to society? I would much prefer fines and other punishments because todays system encurage people to sue not for justice but for money alone. There is something fundamentally wrong if you can make more money by litigating than by producing goods and services.

    It can only hurt the overall economy so i dont understand how it has survived as a system.

    --
    HTTP/1.1 400
    1. Re:Really? by iggymanz · · Score: 1

      nonsense, it is quite trivial to show litigation is a service which causes economic expansion just like any other service. The money made by litigation is spent and invested just like any other money. The goodness or evilness of the service is of no economic consequence.

  58. Deception? by SeinJunkie · · Score: 5, Insightful

    From McGrath:

    "We're looking for the best return we can, and we think the focus should be on IP licensing (and enforcement)."

    I think that statement (esp. adding "enforcement" to it) as well as this summary of the NY Times article by the author caused the OP to make the allegations.

    ... company executives were spending too much time and energy "in publicity and debate" with open source advocates about Linux, rather than focusing on legal strategy.

    According to those two statements, one could conclude that legal action is all Baystar is looking for.

  59. Someone has to say it. . . by chryptic · · Score: 1



    Bob, you sound like a real ass!

    --
    The two most common things in the Universe are hydrogen and stupidity. -- Harlan Ellison
  60. Getting a return on our investment by maroberts · · Score: 2, Insightful

    I'm beginning to think that Baystar and RBC are indulging in the best troll and waste of time of Open Source developers ever, so I think ways of returning the favour should be looked into.

    Is there any way we as a group can hurt both Baystar and RBC for a lot more than their 50 mil investment? Can we find out and boycott companies where they have a major stake? What other actions can we legally take to make sure that the message of taking on the OSS community is a very expensive hobby?

    At the end of the day, SCo may be a smoking hole in the ground, but it would be nice if the puppetmasters felt the pain too.

    --

    Donte Alistair Anderson Roberts - hi son!
    Karma: Chameleon

    1. Re:Getting a return on our investment by fricker · · Score: 1

      http://www.baystarcapital.com/public/portfolio.htm l

    2. Re:Getting a return on our investment by tiger99 · · Score: 1

      You need to attack the real puppetmaster, Sir Bill. One way of doing that is to make better products (not difficult!), and to ensure that they get sufficient media attention that the world knows they are better. That part may be more difficult, but not impossible.

  61. It would appear you are mistaken . . . by werdna · · Score: 3, Insightful

    todays system encurage people to sue not for justice but for money alone

    With all due respect,WTF are you talking about? What does it mean to "sue for justice?" In modern society, we have two forms of litigation, criminal and civil. In criminal litigation, society sues through its government to seek remedies against those who commit a crime. Those remedies take the form of incarceration and fines. In civil litigation, individuals sue for remedies due to economic harms caused by the conduct of another. Remedies are either legal (that is, money damages), or equitable (that is, an injunction from further conduct). The later is much rarer, mostly because litigation is too expensive to justify the cost of seeking only an injunction.

    In that sense, why are you whining about people suing for money? That is, in fact, the ONLY reason to sue -- it is the only remedy the court has to give at the end of the day. Nothing else would make any economic sense.

    It can only hurt the overall economy so i dont understand how it has survived as a system.

    You make the strongest argument against your hypothesis with this conclusion. As you have observed, civil litigation has survived as a practice in every modern society on Earth today. People continue to invest in litigation, both asserting and defending, because it serves an economic purpose to do so.

    It does not hurt the overall economy therefore, which is why it has survived as a system.

    The bottom line, really, is to compare the presence of civil litigation

  62. Very much so. . . by werdna · · Score: 2, Insightful

    but its more like this:

    Dump your products, because you are no good at, and have no special expertise in selling them. Let others do that, while collecting license revenues for their use of the intellectual property that you acquired, albeit from others.

  63. Re:If that's the case... by symbolic · · Score: 1


    I can only assume you've been crying for a very long time.

  64. Just What Does SCO "Own"? by Goo.cc · · Score: 4, Insightful

    The article has a quote where Baystar "told NewsForge Thursday that it doesn't believe SCO's senior management is experienced enough in IT litigation to fully reap the financial benefits from the company's intellectual property." The problem is, SCO doesn't really own any IP from what I have seen thus far.

    They do not own the copyrights to the Unix source code, as that was explicitly exempted in the agreement between Novel and old-SCO. They do not own the specifications for Unix, which is now a public standard known as Posix. They do not even own the Unix trademark, which is owned by the Open Group.

    It seems to me that all they really own is the abililty to license the Unix code that belongs to Novell, which is why they have to pay Novell a portition of the licensing fees they collect. The fact that Novell has the ability to override licensing decisions made by SCO (such as trying to void IBM's license in regards to AIX) indicates to me who is really in charge.

    Personally, I hope Baystar suffers a huge loss for their decision to back such a stupid lawsuit.

    1. Re:Just What Does SCO "Own"? by Syrrh · · Score: 1

      Not necessarily. Keep in mind the reason SCO has been ridiculed so long in the first place, its insistance that they shouldn't have to provide evidence of wrongdoing.

      To a VC firm that may be a little too laid back in their company research, this could appear as something different. Baystar may not fully realize that SCO's claims are full of shit, but can easily see that their handling of court cases is hopelessly incompetent.

  65. Time for a new protocol... by Baumi · · Score: 3, Funny

    Someone should spend the time to develop an RFC for a desperatly needed protocol: Lawsuit-over-IP

    Baumi

  66. Division of Power by microbox · · Score: 1

    If we want them to do something else, we need to make provision for that in law

    I agree that the rules need to be fixed, however, who do you think makes the rules? We need to start with a division of power between corporations and politicians, similar to what we have between police/courts and politicians. Only then will voters have a chance at reforming the psychopathic entity that we corporations.

    --

    Like all pain, suffering is a signal that something isn't right
  67. Win -Win by Anonymous Coward · · Score: 2, Funny

    They can't lose. If SCO prevails and Linux users have to pay, then they share in that income. If SCO is defeated, then they can sue Darl and company and share in the proceeds from that. Anyone would take that sort of deal. Anyone without a soul, that is.

  68. Hah by Sheepdot · · Score: 2, Interesting

    Darl McBride is the best thing to happen to Open Source.

    Only problem is that it will still be a year or so before we realize just how great of a service he is/was to us.

  69. Re:I'm not so sure that's out of line by symbolic · · Score: 1


    but he's also raiding the SCO coffers all by himself, lifting $968,000 out of the company last year! Almost a million dollars in salary+bonus from a business that's a COMPLETE FAILURE!

    What's the going rate for a good actor? I mean, you have to admit that his impersonation of a corporate CEO isn't all bad - especially when you consider his seemingly natural sbility to include some rather comedic interludes.

  70. Re:Always with the Doom & Gloom, he is... by Mister+Transistor · · Score: 1

    Sounds very similar to what has already happened in the Medical "industry". Doctor's malpractice insurance is through the roof, and they are required to carry it so that crumbs like the legal firm of "Scumbag, Ambulance & Chasers" can stay in business airing their awful TV commercials. Net result is the doctors pay out the ass, and in turn we pay out the ass, with absolutely no social benefit (except to the lawyers and insurance co's).

    --
    -- You are in a maze of little, twisty passages, all different... --
  71. Get him by bonch · · Score: 1

    Get him! He's threatening our hegemony!

    Seriously, this is a ridiculously spun article. As pointed out, the spokesperson said ABSOLUTELY NOTHING about suing Linux users and making money. He said SCO should focus on IP licensing and enforcement, which is what companies who own valuable IP do. As you pointed out, VA Linux says the EXACT SAME THING!

    Let's not get ridiculous here. Then again, what am I saying? This is Slashdot, where's become the norm to have ridiculous mindsets and baseless opinions, rather than the simple tech news site it used to be before VA Linux got a hold of it...

    1. Re:Get him by _Sprocket_ · · Score: 1


      He said SCO should focus on IP licensing and enforcement, which is what companies who own valuable IP do. As you pointed out, VA Linux says the EXACT SAME THING!


      You might want to note that VA Software (they changed their name when they dropped out of the Linux-on-servers hardware market) sells products. Now, SCO does too. However, also note that Baystar's spokesperson expressed a desire to see SCO's only product, their Unix offerings, dropped. Also note:

      McGrath indicated to NewsForge that BayStar's main interest in SCO Group is its $5 billion IP lawsuit case against IBM, which it filed March 6, 2003.

      Perhapse you'd like to point to VA Software's pending lawsuits?


      This is Slashdot, where's become the norm to have ridiculous mindsets and baseless opinions, rather than the simple tech news site it used to be before VA Linux got a hold of it...


      Ahhh. This is why you won't grasp the concept that "VA Linux" is now VA Software. Because with Linux in the name, it is far easier to imply a financially-induced bias. Then it's easier to dismiss any other criticisms expressed in this forum as "rediculous" and "mindless". Nevermind that Slashdot has always expressed certain critisms well before VA Linux entered the scene.

  72. That would break the rules... by rewt66 · · Score: 1

    ... against cruel and unusual punishment.

    In fact, it would probably be cruel and unusual punishment to both of them!

  73. well said monkey by prognostic · · Score: 1

    what about soney and phillips? they bought intertrust soley for IP lawsuit behind it. that's how companies work? and like monkey said..he simply said that the only thing worth a damn in the company anymore is the potential proceeds of a lawsuit...not that he loves them...ha. i doubt anyone could love something so painstaking. that is, unless you're filing in the rocket docket of the eastern district of texas...as mentioned earlier this week=)

  74. BayStar boycott list by Openstandards.net · · Score: 2, Informative
    1. Re:BayStar boycott list by BCW2 · · Score: 1

      Damn, and I liked Sirius and XM. Never cared for Roxio. Never really heard of the rest. Thanks for the link. I will use it to make different choices.

      --
      Professional Politicians are not the solution, they ARE the problem.
  75. BayStar's Deathstar by scoove · · Score: 5, Interesting

    Maybe that's why BayStar now wants their money back from SCO?

    Not quite. My assessment is that they never expected Darl to go hog wild on the PR front, nor did they expect him to be "bright" enough (in his own parasitic, pathetic way) to realize he was being set up to drive SCO into the ground.

    Looking at BayStar's backers, the initial move against OSS was tremendously clever and dangerous. By funding small battles in minor lands, the goal was to poison OSS. Apply a stigma to it, make it look shady, risky and dangerous and corporate America will stick with the institutions of Microsoft, Solaris, Oracle, SCO, etc. (this theory helps explain why Oracle and Sun have appearances of being on the "wrong" side of OSS and may be receiving subpoenas in the matter - Oracle already has).

    Many of Groklaw's commentators have difficulty understanding why SCO, BayStar, Boies & crew, Sontag, and many other intelligent (ethics aside) people bet on such a ludicrous case. Sontag's recent copyright to patent morphing attempts, for instance, is terribly weak and Sontag clearly must be aware of it. But this case wasn't initially propped up to be the primary battleground between the proprietary software world and OSS. It was intended to be a lengthly skirmish between a pump & dump effort from a long-dead UNIX vendor and OSS.

    What went wrong? They hired the right white-shoe legal firm for the job (Boies), greased the pols (Hatch) and got the right court. What they didn't expect is an effective, organized opposition (e.g. Groklaw) and more so, did not count on losing the traderag spin (you can bet there's been some money spent to protect that message, but you can't stop them from dropping the paid spin once the issue goes mainstream, although there still is the occasional hack for hire out there). Oddly enough, though, the greatest mistake was trusting Darl and Chris to remain stupid and unaware that they were being set up to fail. Darl in particular believed the lies and the thought that he could actually own the empire that controlled what is presently OSS got him. Imagine the power and wealth from being the CEO to own Linux? They shouldn't have underestimated Darl's ability to self-delude, let alone his greed and power drive. The created their own monster and can't control him (though BayStar is now trying to put the proverbial genie back in the bottle). BayStar has a slight problem in this move, though, as it won't immediately kill Darl and instead, may make him feel even more attacked. Having dealt with pump & dump schemers like Darl before, the last thing you want to do is corner him. BayStar should have moved to redirect (e.g. offer another $20 mil or so and slow things down and move the matter off of the front pages of the tech press. Either that, or promote Darl to some "critical" to allow him to focus on building the future super Linux company and "not be distracted from the day to day of nasty legal stuff" - anything to get him out of SCOg).

    This truly is terrible news for the anti-OSS coalition. Fighting the main battle on this issue is a historic error. Should Linux be permitted to be decreed "legitimate and safe" through this process, you can expect Microsoft to lose its OS business within 5-10 years (being perhaps relegated to an office suite vendor), Sun left to push high-end AMD or Intel boxes, and Oracle simply to perish (hey Larry, can you say "Post-gres-ql?" I didn't think you could!).

    IBM's motivation is tremendously historical. They got screwed by the OS play with Gates the first time around and are salivating at a royalty-free OS that frees them from bundling leverage and other annoyances, let alone the license expense. Although they derive their own benefit, kudos to IBM for escalating the skirmish into an all-out war.

    *scoove*

  76. But some (like BayStar) bet to lose by Anonymous Coward · · Score: 2, Interesting

    what matters to 'outsiders' is whether they have a *chance* of winning a court case, not whether they have any real ip.

    The day-to-day investors in this scheme are of little relevance. BayStar understands this case is a dog and it won't win. It had hoped, however, to fire off a plethora of anti-OSS IP cases to poison OSS for BayStar's real clients.

    If you're trading on SCOG or any other BayStar venture, you'll eventually get hurt. Understand there are ways BayStar can make money while their investment tanks (I learned firsthand from one).

    Should BayStar be working for anti-OSS clients (which it is), SCOG's litigation failure and demise is of no concern. It's a cost of doing business in the effort to make OSS untouchable to corporate America. That's the expected outcome. The grand-slam is getting Sen. Hatch and friends to push anti-OSS legislation, under piracy, homeland defense, etc. guises.

    1. Re:But some (like BayStar) bet to lose by Hungry+Admin · · Score: 1

      "Should BayStar be working for anti-OSS clients (which it is), SCOG's litigation failure and demise is of no concern. It's a cost of doing business in the effort to make OSS untouchable to corporate America."

      This should be modded +5 insightful, and I just used my last mod point. Dang.

      Going back to the Chess analogy, sometimes you need to sacrifice a minor piece for the good of the King (Microsoft.)

      --
      Be who you are and say what you feel, because the people who mind don't matter, and the people who matter don't mind.
  77. What baystar ought to do is... by IBitOBear · · Score: 2

    Die In A Fire

    And so should each of their executives separately or all together.

    People who just want to rub strangers together in the hopes that money will fall out are the kinds of parasties on humantiy that really need to exit the gene-pool.

    Those who are proud of their position and goals in this respect need to willfully, and of their own violation, seek and recover the clearly present and valuable "gold like substance that marketers insist will be good for the economy" from within the heart of any really nice hot flame. They do, after all, seem to so enjoy the heat and entropy they try to extract from anything useful that comes near them.

    They should do this dressed only in a festive goat skin, or perhaps the flesh of their offspring, equipped with only a cheap aluminium spoon.

    First one out with a full jar of plasma gets an executive bonus, a writeup in CIO magazine, and a seat on a board of directors...

    --
    Innocent people shouldn't be forced to pay for inferior software development.
    --"Code Complete" Microsoft Press
  78. Also some of the least successful are capitalist by dusanv · · Score: 1

    Bangladsh, Somalia, Ethiopia, Erithrea. Not that I don't like capitalism but your line of thinking is a huge generlization. Capitalism mixed with a (mostly) lawful and well governed, democratic society would be a better definition of a potentially successful system...

  79. Re:Always with the Doom & Gloom, he is... by rhizome · · Score: 1

    Secret investments are a product of sex and violence. Right.

    --
    When I was a kid, we only had one Darth.
  80. Yet more lies... by grepistan · · Score: 1

    Nice rant. Feel better to have go that off your chest? I'm not sure whether it's worth my time replying to all that flamebait, but then again I don't want some of your "theories" going unquestioned.

    1. Who exactly says that Linux refers to 'just the kernel'?

    2. There is nothing hypocritical in drawing a line between heavy-handed RIAA overreactions towards fileswappers and enforcement of the GPL. The assumption that everyone on here is a pirate and a thief is a typical FUD smear and potentially defamatory. Lucky you hide behind anonymity.

    3. You're all over the place in this one. Let me just say that most academics I know would not be pleased to be described as "students". Oh, and the unemployed. Talk about hard targets!

    4. Some non-slashdot types actually do know and care about the SCO-Linux issue and other computer related information. And since when do people at the "mall or coffee shop" care about anything besides their latte or their orgy of consumption? Or their enormous cars?

    5. "If a Windows company or even Microsoft itself owned a 'tech news' site and posted anti-Linux articles all the time"
    Sounds like most of the computer media to me.

    6. You've got me there. The unmatched quality and diversity in pop music today has no equal. On a similar subject, Hollywood movies and American TV are also bywords for mediocrity. They are popular because morons are constantly saturated with messages that they need/want it.

    7. See #2. And stop defaming me. But while we're on the subject of Kazaa, it seems more than a little appropriate to me that a company that has made its money on spyware and piracy should be inflicted by this sort of thing.

    8. Now we know what direction this comes from - the disgruntled McCarthyist distrust of anything that doesn't make money for a small group. Now there's an attitude I often find at the "mall or coffee shop". Anything free must be contaminated by hippies. Probably packed full of drugs or something.

    9. I'm not surprised that the editors don't like you if you always post like that.

    10. See #9.

    11. Someone like you accusing /. of spin and hypocrisy? Very amusing.

    12. Yes, /. don't like Microsoft. Big deal. Not what I would describe as a revelation.

    13. This opinion poll shows that a sample size of less than 300 self-selected idiots is not particularly relevant. The site crashed when I tried to vote, too.

    14. Didn't Microsoft Borrow(TM) the whole idea of a GUI from some company back in the old days?

    15. The people who say "Linux is ready for the desktop" never specify whose desktop we are talking about here. No, it's not for the completely untrained user, but surely any Microsoft trained person would be capable of running apps under X? Not all Linux time is spent at the console you know.

    16. Spyware is an unfortunate choice of words when describing windows XP, and you have obviously missed the point. The issue with XP is not that media player grabs song titles, but that it and other parts of XP contain Microsoft backdoors allowing examination of a computer from Redmond...

    17. Wow, IRC. Great evidence.

    18. Banner ads? What banner ads? (Firefox!)

    Once again, sorry for responding to the troll, but I couldn't let some of those things go unanswered...

    --
    Real stupidity beats artificial intelligence every time.
    -- Terry Pratchett, Hogfather
  81. 100% correct. by blair1q · · Score: 1

    SCO's IP has been coopted, and it is seeking a remedy.

    The fact that there's an "entrepreneur" who sees this as a business model is an entirely separate problem.

    His character is of course putrid. But then, so are the characters that created his oppotunity by stealing the IP that he then bought.

    In the final analysis, this is morally a case of two wrongs don't make a right, but the law is on his side.

  82. Re:Lies, opinions, and half-truths by thisgooroo · · Score: 1

    umm, i thought i was in a thread about baystar and SCO? how is your rant related to the subject?

  83. A classic error with respect to FOSS. by Ungrounded+Lightning · · Score: 1

    What they didn't expect is an effective, organized opposition (e.g. Groklaw) [...]

    Which is a classic error for any corporation looking at any volunteer effort - to assume that, because the volunteers are not doing this for a living with a corporate infrastructure behind them, they are incapable of organized, sustained, intelligent, and effective effort.

    They make this mistake when analyzing the software development and support efforts. But FOSS' track record is finally bringing the most perceptive of them to an understanding of the error. (It's also rubbing the noses of the most outperformed in this simple truth, as well.)

    Now SCO has made the same mistake when it came to our abilities on the legal and PR fronts. They targeted IBM's teams (a mistake in itself, since IBM has a long history of defending against bogus IP claim terrorism). Then they found themselves fighting a hydra-headded monster, with major brainpower, skills, and persistence. (And with NOBODY who could declare a surrender and make it stick. B-) )

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  84. Obviously... by davmoo · · Score: 1

    Even when Baystar first announced they wanted their money back, a child of 5 could see that Baystar wasn't doing it because they have suddenly become our friend.

    --
    I want a new quote. One that won't spill. One that don't cost too much. Or come in a pill.
  85. But what if ... by Udo+Schmitz · · Score: 1
    What you don't see is VA Linux suing people or companies while refusing to show what they are suing over.

    But what if some day VA Linux is owned by someone like Canopy? On the stock market such a thing can happen fast. Caldera once was a real nice, fluffy buddy too.

    Then you would learn that the patent system and todays copyright legislation, as are a problem. Not who owns what. Because this can (and will) change. Wasn't that one of the reasons to make the GPL?

    1. Re:But what if ... by Kalak · · Score: 1

      Never assume a company (or frequently, a person) will be as you know them now. The only thing that stays the same is change.

      New CEO can turn Caldera from a linux company into SCO. Or it can turn Lego into a litigation driven company. You never know.

      --
      I am, and always will be, an idiot. Karma: Coma (mostly effected by .hack)
  86. Re:If SCO wasn't so damn greedy.. by Syrrh · · Score: 1

    Well, the simple answer is that even though tiny fees would be more readily paid, it'd be awfully hard to come up with Darl's near-million-dollar paycheck.

    Not that a company dealing strictly in IP *needs* upper management at all, but mutiny isn't really an option in a corporation.