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BayStar Sets Lawyers on SCO

myster0n writes "According to The Register: 'SCO's attempts to rescue its relationship with BayStar, its biggest backer, have come to naught. On Friday morning, Eastern time, SCO announced that the stock buyback deal it agreed with the unhappy investor had closed. Two hours and five minutes later, Baystar issued a statement saying that a) no it hadn't and b) we'll see you in court, matey.'" Thanks to The Reg for the write-up.

43 of 377 comments (clear)

  1. Obligatory Simpson's quote... by Anonymous+Writer · · Score: 5, Funny

    "Ha ha!" (Nelson)

    1. Re:Obligatory Simpson's quote... by Anonymous Coward · · Score: 5, Funny

      "Ha ha!" (Nelson)

      "Release the hounds!" (Mr. Burns) might be more appropriate.

  2. Baystar is canadian. by Thng · · Score: 4, Funny

    so it should be "we'll see you in court, eh."

    1. Re:Baystar is canadian. by Polkyb · · Score: 4, Funny

      I really can't see what all the fuss is aboot

      --
      I've never shoed a horse, but I once told a donkey to piss off!
    2. Re:Baystar is canadian. by cdrudge · · Score: 4, Informative

      Actually they are in California, so it should be "we'll see you in court, dude." You are probably thinking of Royal Bank of Canada (RBC) that originally was apart of the $50m cash infusion that backed out a while ago when Baystar bought them out.

    3. Re:Baystar is canadian. by daeley · · Score: 4, Funny

      Now, now, now. There's no point in insulting our neighbors to the North with stereotypes that don't reflect the reality of a richly multicultural society.

      It should be "We'll see you in court, you hosers."

      --
      I watched C-beams glitter in the dark near the Tannhauser gate.
    4. Re:Baystar is canadian. by JPelorat · · Score: 4, Funny

      Sounds like a good plot for "SCO and Darl's Bogus Journey"

      --
      Hokey statistics and ancient misconceptions are no match for a good thought in your head, kid!
    5. Re:Baystar is canadian. by 91degrees · · Score: 3, Funny

      That was a translation to British.

      Slashdot being a US site, should therefore translate it again to "We'll see you in court, sucka"

    6. Re:Baystar is canadian. by schon · · Score: 5, Insightful

      What if SCO is right?

      Well, as that's one of the signs of the Apocalypse, I think we'll all have bigger things to worry about.

      Seriously - wondering "what if SCO is right?" is like wondering "what will I do if monkeys fly out of my butt?" After all, you've never had monkeys fly out of your butt before, so therefore the longer you go without having monkeys fly out of your butt, the greater the chance that they eventually will, right?

      the length this has drawn out does make one wonder.

      The length of time is simply a demonstration of how long someone can game the system. Why not simply ask "why has this drawn out so long, and SCO has yet to produce a single shred of evidence to support their claims?"

    7. Re:Baystar is canadian. by gmack · · Score: 4, Informative

      I think we need to take a good look at what they claim to own in their court filings:

      JFS? ported from OS/2.

      RCU? Initially refused by Linus until IBM granted all of opensource use of IBM's patent on the technology.

      ELF? Released to the open public as a standard by Novell, Old SCO, and Intel.

      There are more but they are along the same lines.

      This case is baseless.

  3. The real conclusion... by Otter · · Score: 4, Insightful

    ...I'd advise drawing from this is to avoid business relationships with either of these companies.

  4. Pains by Zorilla · · Score: 5, Insightful

    Looks like SCO is about to finally see the damage they cause when they burn bridges via litigation. The less "business partners" SCO has, the shorter their life expectancy, which doesn't seem to consist of more than suing everybody, will be.

    --

    It would be cool if it didn't suck.
  5. My favorite part by grunt107 · · Score: 5, Funny

    is the following paragraph:
    'SCO maintains that it has been a paragon of virtue and transparency throughout, and that everything it said publicly and privately is true. But, and this should come as no surprise, it won't had over the documents BayStar wants to see. It says this is to "protect the confidential and proprietary nature of the information" and to "avoid fostering speculation regardng its SCOsource business".'

    Darl: Paragon of Virtue, Lifter of the Downtrodden, Scooper of the Pooper - He needs an action figure!!!!

    1. Re:My favorite part by Dumbush · · Score: 3, Insightful

      hmmm... while reading that, I kept thinking about the Bush administration for some reason...

    2. Re:My favorite part by WWWWolf · · Score: 3, Funny
      SCO maintains that it has been a paragon of virtue

      Welcome Darl, I am Hawkwind, Seer of Souls. I see that which is within thee and drives thee to deeds of good or evil...
      For what path dost thou seek enlightenment?
      Honesty
      Thou art a thief and a scoundrel. Thou may not ever become an Avatar!
      Hawkwind asks: What other path seeks clarity?
      Honor
      Thou art a cad and a bounder. Thy presence is an affront. Thou art low as a slug!
      Hawkwind asks: What other path seeks clarity?
      Humility
      Thou art too proud of thy little deeds. Humility is the root of all Virtue!

      Hawkwind asks: What other path seeks clarity?
      Justice
      Thou art cruel and unjust. In time thou will suffer for thy crimes!

      Etc, etc... you get the idea.

  6. Two hours and five minutes by AndroidCat · · Score: 5, Funny

    The five minutes to draft their response, I can understand. What was the two hours for? Laughter, rage, a few more holes of golf?

    --
    One line blog. I hear that they're called Twitters now.
  7. Nothing for SCO to fret about... by Saeed+al-Sahaf · · Score: 4, Insightful

    This still doesn't represent any real threat to SCO because it is just a maneuver by BayStar to get the terms they want. SCO can't afford to have a protracted fracas with BayStar, so almost certainly there will be a settlement soon. This is all just pre-resolution chest thumping. S.O.P.

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    1. Re:Nothing for SCO to fret about... by spungo · · Score: 3, Informative

      Yes there is - a matter $30m, roughly. If Baystar get their way, they could get back their entire $50m, as opposed to the $22m that SCO are offering, as far as I can tell.

    2. Re:Nothing for SCO to fret about... by cdrudge · · Score: 4, Interesting

      They couldn't afford to sue IBM, RedHat (ok RedHat sued them but still), Novell, AutoZone, or DC, but that didn't stop them from doing it. I would agree though that this is more of a PR move to show who's is longer.

    3. Re:Nothing for SCO to fret about... by Mr2cents · · Score: 4, Interesting

      I don't consider your investor threatening to sue you a healthy situation. SCO is a big old machine that's at the end of it life; everything is shaking, and soon it will just fall apart.

      --
      "It's too bad that stupidity isn't painful." - Anton LaVey
  8. Another lovely day on the slopes... by tcopeland · · Score: 4, Insightful

    ....as SCO's stock skis ever downwards.

    1. Re:Another lovely day on the slopes... by stecoop · · Score: 3, Informative

      My rules of investment which are also followed by Warren Batty (or do I follow his rules? ehh I like my wording), is to never short a stock. The most money you can make from a short stock is the current price times the number of share you buy. Meaning that as the company approaches zero, the less likely you are to make more money. See in a regular stock purchase, your highest price approaches infinity because there is no limit to how high the stock can go; therefore, your better off to buy a positive company.

      In the case of SCOX, the most you could make is $4.15 per share as of 10:38AM ET.

    2. Re:Another lovely day on the slopes... by Cecil · · Score: 4, Informative

      While I agree that shorting SCO right now, if it were possible, wouldn't be the greatest idea, the people who shorted SCO at $24 are happy.

      Both traditional investment and short selling have limits. Speaking both technically and practically there are limits to high high a stock can go. There is only so much market share available before you have to start dealing with anti-trust legislation and market saturation. Things get increasingly difficult the bigger you get. For this reason, stocks rarely go above certain values.

      Conversely, there is a lower limit to stock price for shorting a stock, $0, but that doesn't mean your gain is limited. If I decided to risk big and short SCO for a million dollars, confident that SCO will be out of business real soon now and then they do go bankrupt, I just made a million dollars. It doesn't matter if they were trading at $0.01 or $1,000,000 per share when I bought them, I still made a million dollars.

      Sometimes your strategy is good. Sometimes it is bad. There are few absolutes in investment.

  9. One could interpret this... by HBI · · Score: 4, Interesting

    as an attempt to shut down the SCO fiasco before any really harmful judgements are handed down that prevent further Microsoft-funded FUD against Linux.

    Obviously there are regulatory hurdles on the way to Longhorn. Slowing Linux adoption is clearly in the best interests of Redmond, and sowing doubt through litigation is pretty much the only strategy they have left that will work.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    1. Re:One could interpret this... by HBI · · Score: 4, Interesting

      The facts are that SCO has bungled this in a massive way. There are repeated mishandlings of the discovery of the IBM case, a poor choice in suing Novell for "Slander of Title", and poor choice in suing Daimler-Chrysler. This is not subject to debate.

      Baystar wanted a competent anti-Linux legal attack. That was what the money was for. They repeatedly asked for this, and got more incompetence. Therefore, they are cutting bait, but more than that, they want to make sure this stuff doesn't continue along the current destructive path. They want SCO to die, and fast.

      Otherwise, why not just take their money and run? Why prolong the agony looking for a declaratory judgement?

      You fail to explain this, and that's why i'm closer to the mark.

      --
      HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    2. Re:One could interpret this... by fr0dicus · · Score: 4, Interesting
      If it is MS behind this, why don't they just concentrate on the lack of cohesive desktop, interoperable office suite, analyst confidence, financial, business-to-business, seriously supported messaging middleware and administration costs and ease-of-use arguments? There's plenty more mileage, FUD or otherwise in all of those areas.

      I really don't think we've seen a tenth of Redmond's answer to Linux yet, simply because it's a tiny threat compared in reality to their customer base as opposed to what the average slashdot poster seems to think about it.

      This was probably just them dipping a toe in the water. Hell, they've destroyed SCO (who had an old Unix and their own version of Linux), cost IBM plenty (those lawyers have to be paid), discredited Novell (what exactly do they own?) and made a lot of people think twice. Sure fills the gap between SP2 and Longhorn.

  10. *gasp!* by Oxy+the+moron · · Score: 3, Funny

    SCO??? Going to court? Impossible! That never happens.... go buy your lottery tickets today!

    --

    Proudly supporting the Libertarian Party.

  11. Dear Darl & Chris by grub · · Score: 5, Funny


    It takes a big man to cry, it takes an even bigger man to laugh at that man.
    Jack Handey

    --
    Trolling is a art,
  12. Come on, people ... by phritz · · Score: 5, Insightful

    It is not OK just to copy and paste the article text in your article submission. You can say something like 'The Register writes " ..."' but you can't just take credit for it. And come on, Hemos, can't you RTFA before you post it?

  13. So does SCO even have any friends now? by tekiegreg · · Score: 4, Funny

    I can't think of one offhand, even Microsoft by implication is their enemy, (if a friend of a friend is now an enemy of your friend, they are your enemy too, no?), congrats SCO you're probably now one of the most loathed companies in America. Lower than Microsoft, lower than Diebold, lower than the Nigerian Asset Transfer consortium that always wants my money, you get the picture...

    --
    ...in bed
  14. Re:Second Wave of Painfull news crushing In by Anonymous Coward · · Score: 5, Informative

    When those dueling press releases were issued friday July 23, 2004 only long time SCO2 watchers Stephen Shankland of Cnet "SCO, BayStar resume squabbling" and Eweeks Steven J. Vaughan-Nichols "BayStar Threatens to Sue SCO" reacted to the PR releases of SCO and Baystar (the later with a good double feature), joint by USA Todays Tech Investor "SCO says BayStar deal closed; BayStar disagrees".

    Today a second wave of Bad PR build up, starting with two refrubished Stephen Shankland
    articles in Australia, followed by Tom's Hardware Guide noting that SCO2 is in a "FiaSCO - SCO's war on Open Source about to be fought on six fronts" (notice that this is the same side that debunked Darl's Naked German Shorts before the last conference call was over)
    http://www.tomshardware.com/hardnews/200407 26_0528 39.html
    Next was Londons The Register to notice that "BayStar sets lawyers on SCO"

    When daylight crossed the atlantic, SCO2 tried to build a dam agaist the wave of bad PR and issued two press releases at 8 o'clock US east cost time in a desperate move to cover the bad news at the top of their news heap, to scroll it off the screens like a Troll posting bogus messages. Let't get some popcorn and see if it holds.

  15. What an abysmal state to be in by geomon · · Score: 5, Insightful

    You've got to wonder how much longer they can stand this abuse.

    Looking at their quarterly income and cash flow statements, one can only draw one conclusion; SCO will be out of cash in roughly three to four quarters without a significant cash injection from an interested party.

    Their stock price sucks, their product sucks, their management sucks, and they have NO customer good will. They have no prospects for income and roughly $60M in cash. At $12M+ losses per quarter, they will barely make it to the close of FY05.

    I would hate to work there.

    --
    "Rocky Rococo, at your cervix!"
    1. Re:What an abysmal state to be in by Greyfox · · Score: 4, Insightful

      I'm sure Microsoft will find a way to keep them going longer. Since everyone now knows about their involvement with the company (Which didn't raise FTC eyebrows?) they could probably just buy the SCO outright and keep it going until all the court cases have been resolved. That'd be another decade of relatively inexpensive FUD against their main competitor, at which time they could figure something else out. Maybe break off a couple billion dollars and infuse it into their favorite political party in return for making open source illegal. When you can afford to give away over thirty billion dollars to your shareholders, a couple billion here or there to preserve the monopoly is a drop in the bucket.

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    2. Re:What an abysmal state to be in by SyntheticTruth · · Score: 3, Funny

      From Yahoo:
      Prev Close: 4.20

      I think that is quite telling, considering the company, and probably the source of their business strategy.

  16. NOT GOOD at all......... by EvilLordSoth · · Score: 5, Insightful

    BayStar ABSOLUTELY MUST do this! Otherwise, IBM and the others will be able to get the information about the link to Microsoft (read the Halloween Memos if you don't know what I'm talking about). They ONLY way to keep that information secret (and protect Bill) is to get it wrapped up in a lawsuit with "confidential" terms and a confidentiality agreement.

    This has NOTHING to do with getting back the money they were instructed to channel to SCO.

    So while we are all sitting around laughing at SCOX Baystar is definitely pulling a fast one to COVER THEIR investor's ASS(ETS).

  17. Isnt it amazing? by Lispy · · Score: 4, Interesting

    I believe that deep in my heart I am a calm and balanced person but it is amazing how angry this whole thing makes me. It really scares me how satisfiying it is to see them get what they deserve. SCO really did a great job in getting all the worst feelings from the techcommunity.

  18. myster0n writes? by goldspider · · Score: 5, Interesting

    "myster0n writes 'SCO's attempts to rescue its relationship with BayStar, its biggest backer, have come to naught. On Friday morning, Eastern time, SCO announced that the stock buyback deal it agreed with the unhappy investor had closed. Two hours and five minutes later, Baystar issued a statement saying that a) no it hadn't and b) we'll see you in court, matey.'"

    Nope, The Register writes.

    If you're going to plagiarize, at least try to make it a little less obvious than a cut-and-paste of the article's opening paragraph.

    --
    "Ask not what your country can do for you." --John F. Kennedy
  19. Not so sure about that by not_a_product_id · · Score: 4, Interesting

    I don't believe SCO has any UNIX 'IP' to be released anyway.

    --

    ---
    We spoke for about a half an hour. I don't recall a thing we said. - Colorblind James Experience

  20. Obligatory Family Guy quote... by Bigby · · Score: 4, Funny

    "You two, fight to the death." -- Stewie

  21. Who lives by the sword, dies by the sword. by Tex+Bravado · · Score: 5, Interesting

    Perhaps BayStar just plans to acquire SCO (and thereby its claims to Unix rights) so that they can pursue the rest of us more effectively ?

  22. Re: "Aboot" by Kombat · · Score: 4, Interesting

    Well, as a Canadian who lives in Toronto (one of the country's largest population centres), I haven't heard ANYONE say 'aboot', EVER

    Yes you have, you just didn't realize it because the difference isn't as pronounced as the parady in the South Park movie. I too, used to think it was just an old wive's tale, and that the pronounciation was identical, but a couple of months ago, there was a special on CBC called "Talking Canadian," which examined the regional dialects, inflections, and differences in our language.

    They demonstrated the slightly different pronounciation of several words, most famously, "about." Like you, I used to think that the joke was that Canadians said "aboot", as in, "look at my foot, I'm wearing a boot." Since I personally don't pronounce it that way, and have never heard anyone else say it like that, I thought it was just a myth. But in fact, we do pronounce it differently than USAmericans, just not that strongly. If you listen, you can hear it.

    Canadians pronounce it as "a-bout," like a wrestling "bout". Think of how you'd say, "I'm going out." That's the sound Canadians (and me too, I realized" employ when we way "about." I incorrectly assumed that that was how USAmericans say it, too. But the CBC special opened my eyes, and now I notice it when watching USAmerican media, too. They don't say it like we do. They say it like "a-bowt." The sound is more like we'd say if we stubbed our toe: "Ow!" Say it to yourself, "Today, the US President talked abowt the upcoming election..." Doesn't it sound surprisingly accurate?

    There were other fascinating differences they highlighted, too. Like "stocking/stalking." Canadians pronounce them identically, but USAmericans put more of an "aw" sound in "stalking" than they do in "stocking." It was a pretty cool special. :)

    --
    Like woodworking? Build your own picture frames.
  23. What the fuck? by XFriday · · Score: 3, Funny

    "Julian, what the fuck is all this Starbay and stuff about? Sounds fuckin stupid to me."

    "Don't worry about it Ricky, it has to do with the Internet."

    "The what?"

    "The Internet, Ricky. You know, the Internet?"

    ...

    "Where the FUCK is Corey and Trevor? I told those fuckin idiots to be back here an hour ago. My fuckin weed plants need to be guarded and the cats have all run away. Fuckin idiots."

    "Ahh fuck, here comes Lahey. Who the FUCK is that in the car with him? That's not Randy."

    "Hello, gentlemen. My name is Darl. Apparently you are using linux here in the trailer park, and I want to talk to you about our intellectual property rights, and how they might be applicable to you."

    "What the fuck is he saying, Julian?"

    "I dunno, Ricky. Bubbles?"

    "No fuckin idea, but I don't like the looks of him."

    "Me neither, Bubs. Ricky, you have permission to do whatever you want to this sheister."

    "You fuckin heard the man, Darl. Julian said."

    WHAMMO!!

    "How's that for pintoflectual flights!!"

  24. The reason it took so long by doublem · · Score: 5, Funny

    They were using Microsoft Word to write the briefs.

    Clippy kept popping up with things like "It looks like you're preparing to sue one of Microsoft's business partners, are you sure you don't want to reconsider" and escalating to "You are making Uncle Bill VERY unhappy."

    It finally crashed and sent an "Error Report" with the full text to Microsoft headquarters.

    In the end they just installed OpenOffice and finished.

    Most of the two hours was downloading the OpenOffice install.

    --
    "Live Free or Die." Don't like it? Then keep out of the USA