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AutoZone Granted Limited Stay in SCO Copyright Case

michael path writes "From Yahoo: Judge Robert C. Jones on Monday denied AutoZone's request to transfer its copyright case with The SCO Group from Nevada to a Tennessee court, but also granted a limited stay to the auto parts chain."

43 of 149 comments (clear)

  1. And on and on and on.. by TheShadowHawk · · Score: 5, Funny

    Man.. this is getting all so boring. It will just drags out for years. Wake me up just before SCO get crushed.

    --
    Friends don't let Friends use Internet Explorer.
    1. Re:And on and on and on.. by mcleverl · · Score: 3, Funny

      News for Nerds. Stuff that mattered?

    2. Re:And on and on and on.. by secolactico · · Score: 2, Funny

      Man.. this is getting all so boring. It will just drags out for years.

      Whoa! I just had a flashback to the O.J. Simpson trial. Remember when it looked as if it was going to go on forever? Whatever happened to judge Ito? Nah... too lazy to google it up.

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      No sig
  2. Yawn... must be a slow geek news day. by LostCluster · · Score: 4, Insightful

    The "stay" has very little power to it. It basically says that there will be no more major courtroom events for the next 90 days, meanwhile the discovery phase of the case is still ongoing and SCO can still try to peer into AutoZone's operations through that process. All we know for sure now is that it won't be going to trial nor be dismissed in the next 90 days, unless the judge doubles back on his own ruling which is also possible so... uhm, what does this tell us?

    This is not any ruling on the merits of the case, nor a firm concurance with AutoZone's agreement with SCO's own request that the case be delayed until IBM v. SCO is settled. There's really not much news in this... but this is Slashdot where any action in the SCO lawsuit is reported.

    Wake me when it's over...

    1. Re:Yawn... must be a slow geek news day. by Anonymous Coward · · Score: 5, Informative

      This isn't exactly correct. SCO *only* gets to do discovery related to a preliminary injunction. The judge told them not to bother with the discovery if they're not going to try for a preliminary injuction - which sets a trap for them. If they pursue an injuction then they have to go forth and try to prove that the stay would cause them massive harm. The stay will continue unless SCO decides to admit to more than they have been prepared to.

    2. Re:Yawn... must be a slow geek news day. by JasonStiletto · · Score: 2, Interesting

      well, besides the discovery being limited to facts related to the injunction SCO is requesting only, and they're told to do NO discovery if they know they won't qualify for said. And that the motion to transfer wasn't denied, nothing was done with it. And it's not held for 90 days, but every 90 days they're to report before the judge and give them a status report. Giving SCO the right to limited discovery may be questionable, but if the judge sees them overreaching, he'll just smack them around.

    3. Re:Yawn... must be a slow geek news day. by gi-tux · · Score: 3, Interesting
      "SCO's principal argument in opposition to AutoZone's motion is that it will suffer irreparable harm if the case is stayed."
      I believe that the key words were irreparable harm. And it is obvious that a stay will cause irreparable harm to SCO. After all if they don't win this one before they lose to IBM, then they can't win this one. Thus a lose to SCO that can't possible be recovered :-)

      I am giving all the business that I can to AutoZone. Seems like they are always getting picked on. I remember when they used to be named Auto Shack, until Radio Shack sued them over their name.

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    4. Re:Yawn... must be a slow geek news day. by Pharmboy · · Score: 2, Informative

      I always thought of it as Slashdot, where even trivial news from Groklaw gets repeated on a daily basis.

      Actually, its been almost three weeks since slashdot posted an SCO story. Wired on McBride on June 26th. I don't think a story every 2 to 3 weeks is so bad, considering the potential ramifications.

      --
      Tequila: It's not just for breakfast anymore!
  3. SCO's argument by iMaple · · Score: 5, Funny

    SCO's principal argument in opposition to AutoZone's motion is that it will suffer irreparable harm if the case is stayed.

    Well I thought they loved that .... From the track record they have of suing people. And isnt it impossible for an almost dead company to suffer more harm ? Oh..I get it .. The SCO executives when looking for new jobs say "We almost won, but the court stayed the case and we suffered irreparable harm"

    1. Re:SCO's argument by Vthornheart · · Score: 2, Interesting

      Hey, what happens if they go out of business before the court cases clear up? Would they be thrown out of court?

      --
      -Vendal Thornheart
    2. Re:SCO's argument by Macadamizer · · Score: 4, Informative

      "SCO's principal argument in opposition to AutoZone's motion is that it will suffer irreparable harm if the case is stayed."

      The reason for this language is because "irreperable harm" is the standard for granting or denying an injunction, depending on which side of the fence you are on. It's a legal term of art. Nothing more than that.

      It's like when you go to the doctor -- when they write up their reports, they say "patient complained of..." So, even if you aren't a whiner, they say you are a complainer -- not to put you down, but because it is a term of art...

      --

      "That's not even wrong..." -- Wolfgang Pauli
    3. Re:SCO's argument by pediddle · · Score: 2, Interesting

      Companies never *really* go out of business. SCO still has creditors, and the creditors will want to be paid. So bankruptcy courts will need to auction off SCO's assets, which right now consists of their supposed intellectual property in the form of UNIX. If AutoZone really is infringing on SCO's copyright, then the creditors would still have a right and necessity to continue to enforce it.

  4. I wonder by AVryhof · · Score: 5, Funny

    You can SCO to hell, SCO to hell and die!

    Honestly, I think they are jumping the gun suing before the courts have ruled on their copyrights. I imagine AutoZone could countersue for extortion if SCO loses the copyright case. They should start the procedings now, maybe it would keep SCO in their place for awhile.

    1. Re:I wonder by Lord+Kano · · Score: 2, Insightful

      IANAL, but extortion, abuse of process and malicious prosecution all come to mind.

      LK

      --
      "Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
    2. Re:I wonder by mog007 · · Score: 2, Interesting

      That's too good a fate for SCO. I hope during the IBM case the judge finds some way to sentence Darl to federal pound-me-in-the-ass prison, even though it's a civil suit.

      Better yet, just get IBM to use their vast legal money to bankrupt SCO before they get a chance to pick on anybody else.

      *Disclaimer*
      This message brought to you by a self-proclaimed mortal enemy of SCO.

    3. Re:I wonder by macdaddy · · Score: 4, Insightful

      We don't want SCO to go bankrupt yet. We want them to lose the case, uphold the GPL, prove Microsoft's involvement and then, ONLY THEN do we want them to be squashed like the bugs that they are.

  5. tantrum? by Anonymous Coward · · Score: 5, Insightful
    AutoZone had used SCO's OpenServer Unix until 2001, when it started to switch over to Red Hat Linux. AutoZone completed its migration to Linux in 2002.
    it kind of seems like this lawsuit is really just a way for SCO to punish AutoZone for no longer using SCO's product.
    1. Re:tantrum? by Antique+Geekmeister · · Score: 4, Insightful

      Let's be very clear on SCO's motives. They're being a puppet to cast FUD on Linux while getting money from Microsoft to stay afloat. In the meantime, their executives are trying to rape the company for golden parachutes, salary, and sales of stock options. Extending the lawsuits is *good* for SCO, because the purpose of the lawsuits at this point is not to win: the grounds of their lawsuits are frankly too weak to actually win in court. Failing in any way that discredits the suits or reduces the cost or risk of the lawsuits to their chosen targets is *BAD* for SCO, because it reduces the effectiveness of their lawsuits and reduces the likelihood of an out of court settlement and reduces Microsoft's willingness to continue funding them.

  6. Denied AutoZone's request to transfer? Not quite. by Saeed+al-Sahaf · · Score: 5, Informative
    From Yahoo: Judge Robert C. Jones on Monday denied AutoZone's request to transfer its copyright case with The SCO Group from Nevada to a Tennessee court

    According to Groklaw, this is not true. They say the issue of transfer is undecided. That is different than denied AutoZone's request to transfer.

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
  7. Whew that was close by spektricide · · Score: 3, Funny
    I can't believe Auto Zone wanted to drag them to Tennessee. Next thing you know they'll be suing cause they got the patent on country music. Only $600 to unlock all your DRM files from your favorite country artits

    SCO-I hope they die...I hope they rot.

    1. Re:Whew that was close by winkydink · · Score: 5, Informative
      "I can't believe Auto Zone wanted to drag them to Tennessee."

      Autozone drags SCO to Tennessee because:

      Autozone is headquartered there

      They don't spend a zillion dollars hiring a Nevada law firm or sending their attorneys there

      It's less distracting to the business

      --

      "I'd rather be a lightning rod than a seismometer." -Ken Kesey

    2. Re:Whew that was close by spektricide · · Score: 3, Funny

      Oh sure I understand part of the whole "logic" surrounding the decision. Still, isn't it a little like asking Satan to come in your house and have some lemonade.

    3. Re:Whew that was close by Lord_Slepnir · · Score: 2, Funny

      Bad move for SCO. RedHat and Autozone respond with lawyers. Rednecks who listen to country music respond with shotguns.

  8. Re:It's Thursday.... by Captain+Splendid · · Score: 5, Funny

    Dude, you come here for cutting-edge newsbreaking? That's the job of something like Google News, not Slashdot. I come here for the type of content, not how fast it gets posted.

    --
    Linux, you magnificent bastard, I read the fucking manual!
  9. SCO investors *everywhere* catch on... by diagnosis · · Score: 3, Interesting

    As Geeks have known ever since this whole SCO debacle started, SCO's claims are bunk. But up until relatively recently, SCO has had artificially high stock valuation as a result of their insane Linux ownership claims.

    About 1 year ago I tried to get approval for an options trading account so I could sell SCO short (ie make money when their stock drops). Unfortunately I didn't have sufficient liquid assets to get options trading approval from my trading company.

    Well, now the rest of the world has caught on, sort of; SCO is still up about 150% from two years ago, but down about 75% from its high. I think there is still a ways to fall...they certainly deserve it.

    ---------------------
    Freedom or Evil: Freevil.net
    G. W. Bush says, "You decide!"

    1. Re:SCO investors *everywhere* catch on... by ptbarnett · · Score: 4, Informative
      About 1 year ago I tried to get approval for an options trading account so I could sell SCO short (ie make money when their stock drops). Unfortunately I didn't have sufficient liquid assets to get options trading approval from my trading company.

      You may not have asked for the right thing.

      There are no options written for SCOX, and there never have been. See here for yourself. Had there been PUT options available, you could have bought those to make money when SCO's stock price crashed. The good thing about options: if you simply buy calls and puts, your loss is limited to your original investment.

      Selling short does not involve option trading. It is effectively borrowing stock from holders of SCO at your brokerage and selling it, with the hope that you will be able to buy it back at a lower price to close out the position. If the stock price skyrockets, your potential loss is limited only by how high the price rises. There's a phenomena known as a "short squeeze", where short sellers try to close out their position by buying the stock, which only pushes the price higher.

      In order to sell short, you must have a margin account. Depending on the brokerage and the specific stock, margin requirements are different. At mine (Fidelity), the margin requirement for SCOX is 60%, which means you would have to put up $6,000 in cash or marginable equities to short $10,000 of SCOX stock. They also have a minimum account balance.

      50% is the initial Federal requirement (at the time of the short sell). Fidelity normally allows the margin requirement to drop to 35% (after the initial short) before issuing a margin call -- which requires you to deposit more cash or close out the position. The 60% margin requirement for SCOX indicates a significantly higher risks.

      Part of your problem may have been your lack of knowledge about the terminology and being able to accurately articulate what you wanted to do. The SEC requires brokerages to assess whether clients understand the risks of option trading. I don't know if they are required to do the same for margin trading.

    2. Re:SCO investors *everywhere* catch on... by vidarh · · Score: 2, Interesting
      The assessment boils down to filling out a form and saying you know what you're talking about, though. I used to have a options and margin enabled account before I switched brokers (haven't bothered asking from the new one, as I haven't had any need), and all I had to do to get it was tick a few boxes.

      There are a few key things to look out for to get an account option trading enabled: You should state that you have a reasonable amount of liquid assets. Your investment goal should be growth/aggressive growth/speculation or similar. And it's an advantage if you state that you have experience with trading option.

      People that would have to lie on any of the above to have a chance should have a long hard think about whether they actually understand options trading well enough not to risk losing their money, though. (And even more so if applying for a margin account, since it's an easy way to bankrupt yourself...)

  10. Re:uhhh? by EdlinUser · · Score: 3, Informative

    >>>
    Uhh, how exactly is this newsworthy? Are we that starved for stories?
    >>>

    Uhh, how exactly is this worth posting? Are you that starved to say something.

    This is big news but you'll have to go to Groklaw or the SCOX board at Yahoo Finance to see why. The judge seems to be a no nonsense type and he told SCO, in nice legal terms, to put up or shut up. They don't have anything to put up and Blake Stowell has said they are not going to shut up. Lotsa very happy posters at Groklaw and The Board.

  11. SCO anti-gravity gun holding up stock price? by shanen · · Score: 4, Interesting

    What I still can't understand is what is holding their stock price up? It's just refusing to stay below the $5 point. Natural floor value, my @ss!

    Seriously, are there some big boys playing games here to keep them alive at the $5 level? For someone like Microsoft the amount of money required would be negligible, but if SCOX hits it's natural penny stock level, the lawsuit and company will be gone.

    --
    Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.
    1. Re:SCO anti-gravity gun holding up stock price? by daniel23 · · Score: 5, Funny


      apparently some party is very dedicated to not let the share price drop below 5 USD. So much so that it borders to the comical: over the last week some days resulted in a flat line at 5$ with some minor moves.
      If this was an EKG the nurse would pull the plug and the doc go out have a smoke...

      The stock has a small volume and thusly is open to painting like its jump upwards just before the quarter closed, theories who does all this include sco, microsoft (fullfilling an assumed promise towards bastar) and some large scale investors fighting some internal trouble if their large position goes below the 5$ line.

      --
      605413? Yes, it's a prime.
    2. Re:SCO anti-gravity gun holding up stock price? by Animats · · Score: 4, Informative

      You can't short stocks on the NASDAQ when they're below $5. So all the short sellers have dropped out of the market. Other than them, nobody cares about SCOX any more. SCOX volume is way down, running about a quarter of what it was a few months ago.

    3. Re:SCO anti-gravity gun holding up stock price? by The+Analog+Kid · · Score: 4, Informative

      The 54.47% of shares that are shorted might have something to do with it.

    4. Re:SCO anti-gravity gun holding up stock price? by Aeiri · · Score: 2, Funny

      SCO anti-gravity gun holding up stock price?

      If they are wanting quick cash, why don't they patent their anti-gravity gun?

    5. Re:SCO anti-gravity gun holding up stock price? by micheas · · Score: 2, Informative

      You can't short stocks on the NASDAQ when they're below $5.
      Wrong. From the U.S. Securities and Exchange Commission web site

      Nasdaq Stock Market Securities

      NASD Rule 3350 prohibits NASD members from short selling in Nasdaq National Market System securities at or below the inside best bid when the best bid is below the previous inside best bid for that stock. The inside best bid is the highest bid by all market makers quoting a particular stock.

      Note, that there is nothing related to minimum price. If you are told that you cannot short a stock under 5, then you are being subjugated to house rules, not SEC rules.

      When stocks fall under 4 they have a Federal Reserve Board margin requirement of 2. This makes shorting low priced stocks less attractive, but they may still be shorted.

      An example of this is to short 1000 shares at 0.01 would require a deposit of $2000 to short $10 of stock. This may not be a concern if you have a large amount of marginable securities that you are not using for anything else, but for most people it is imprudent to short low value stock.

    6. Re:SCO anti-gravity gun holding up stock price? by Our+Man+In+Redmond · · Score: 2, Interesting

      What I still can't understand is what is holding their stock price up?

      One word: Upsidaisium.

      --
      Someone you trust is one of us.
  12. Re:Denied AutoZone's request to transfer? Not quit by hendersj · · Score: 4, Informative

    Yeah, it seems that Yahoo News doesn't really understand what's going on here, does it?

    It's pretty straightforward....Autozone was granted the stay, with 90 day review periods (just like the RedHat case). Their 90 day review takes place after the RedHat review because the Autozone case depends on the RedHat case being decided as well.

    The transfer wasn't even discussed in depth because until the stay is lifted, it's moot.

    --
    Insanity is a gradual process; don't rush it.
  13. A more interesting article by CaptainCarrot · · Score: 4, Interesting
    Geez, /. is behind the curve on this one. Groklaw had it two days ago.

    Back on Saturday there was a far more interesting Groklaw article discussing Red Hat's letter to the judge in their case. They lay out in clear detail the contradictory stories SCO has been telling in the different courtrooms across the country in an effort to convince her to lift the stay and let them smoosh SCO's Linux copyright claims into the mud. This, I think, is probably where we'll want to be paying some attention next.

    --
    And the brethren went away edified.
  14. No, it's an indefinite stay, pending IBM vs. SCO by Animats · · Score: 5, Interesting
    The judge granted AutoZone an indefinite stay, with 90 day reports, pending the resolution of the copyright claims in the SCO vs. IBM case. Just like SCO has in the Red Hat case. All SCO gets to do is try to show that AutoZone should be temoorarily enjoined against something. (But what?) And the judge told SCO's lawyers not to try going on a fishing expedition with discovery.

    This is a big loss for SCO. Any case they bring against a Linux user is going to end up on hold like this. This totally derails their licensing strategy, because their threat to sue is now empty.

    SCO may try harassiing AutoZone with discovery, but it won't work.

    Of course, IBM might win its summary judgement on the copyright issue on August 8th. If that happens, the AutoZone and Red Hat cases will be unstayed. Those parties will presumably file for summary judgement and win..

  15. Re:Denied AutoZone's request to transfer? Not quit by SpaceLifeForm · · Score: 2
    Correct, why waste the courts time?

    Oh, yeah, that's what SCO wants, isn't it? This is twisted FUD coming from Yahoo, Yahoo now tied into the The Great Enterprise IM love-in?

    They've went to the DarkSide.

    --
    You are being MICROattacked, from various angles, in a SOFT manner.
  16. "Limited Stay" - I don't think so by gvc · · Score: 3, Interesting

    The press have screwed this one up, and Slashdot is parroting their line.

    The judged stayed the proceedings. The only "limit" is that SCO were invited to file for a preliminary injunction while the stay is pending. Many read the invitation as "put up or shut up." It is a major reach to put any SCO-positive spin on this ruling.

    I'd like to remind readers that USL vs BSDI was resolved when the court denied a motion for preliminary injunction.

  17. Re:Denied AutoZone's request to transfer? Not quit by Siva · · Score: 2, Interesting

    Isn't it interesting that the editors modified the title of the Red Hat vs. The Ambulence Chasers story to remove the slur, but don't seem interested in correcting the mistake you mention (denied versus undecided), which completely changes this story's meaning.

    (appologies to the guy i modded up in this story, now that the point will be revoked)

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  18. MP3 of the hearing by petrofsky · · Score: 5, Informative

    A recording of the hearing (30 minutes, 29 MB) is at sco.petrofsky.org/autozone-2004-07-12.mp3 and www.users.cloud9.net/~terrapn/Courtroom%207D%20-%2 012-07-2004.mp3

    I know the first URL won't survive much of a slashdotting, not sure about the second. Please mirror it somewhere better if you're so inclined. (No, this is not a bootleg recording. I obtained it from the clerk on Tuesday.)

    Below are the notes I wrote on Monday after attending the hearing. One correction: at the hearing, the judge did not actually make any order on either motion, but my understanding was that in the aftermath of the hearing he would issue orders denying the motion to transfer venue and granting the motion to stay (with, as an exception to the stay, an opportunity for SCO to move for a preliminary injunction, and to conduct one round of discovery to attempt to support such an injuction).

    No orders have yet been issued, so it's impossible to say *exactly* what they will be. The official minutes of the hearing were written on Wednesday, and are not yet available either, but the heavily abbreviated caption to the minutes is now showing on the court's (subscription-only) docket access site and reads like so:

    dtd 7/12/04: CT Recorder: Lilia Abarca De Carter: Re: Hrg on mtn for stay (#10) & mtn to transfer (#9), ORD case is stayed for 90 dys, Ptys will be allowed disc as to issue of prelim injunct. Cnsl directed to prepare ord for CT sign. cpys dist

    It appears that the court may be neither officially granting nor denying the venue change at this time. It appears that all the activity contemplated at the hearing (the preliminary injunction process and the submitting of letters every 90 days) will occur in the Nevada district, so my understanding is that the venue change has in effect been denied for now, but the court may revisit it when the stay is lifted, without the motion having to be made again.

    Here are my initial notes, posted Monday at finance.messages.yahoo.com

    Subject: Venue change denied, stay mostly granted

    AutoZone's motion for a change of venue (to Tennessee) was denied. The case will stay in Nevada.

    Judge Jones said he will follow Judge Robinson's lead and stay the case indefinitely, like the Red Hat case was, with the parties to send him updates on all the other actions every 90 days.

    However, he will give SCO a chance to file a motion for a preliminary injunction to be in effect during the stay, and he will allow one round of discovery to facilitate such a motion.

    That is, if SCO believes that it will be irreparably harmed during the stay, it may ask for an order that, during the stay, AutoZone is not to engage in whatever the harmful activity is. SCO will have thirty days to propound any discovery requests (interrogatories, document requests, or depositions) that are necessary for its preliminary injunction motion, and AutoZone will have thirty days to respond to them.

    The case will be stayed indefinitely, pending other cases, regardless of the outcome of SCO's request (should it decide to make one) for a preliminary injunction, which would just describe what things (if any) AutoZone needs to refrain from doing until the stay is ended.

    AutoZone asked the judge to reconsider the part about the preliminary injunction, pointing out that SCO has never sought a preliminary injunction (which has quite stringent requirements) against anyone, and that it's very difficult to imagine that SCO could show sufficient grounds for a preliminary injunction, because the only thing SCO wants with respect to the infringing conduct i

  19. (stay)^8988 by f00zy · · Score: 2, Funny

    i can't read the word "stay" anymore. it hurts.