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SCO Spreads Rumors About IBM Lawsuit

yeremein writes "SCO says it has found a new smoking gun in its battle with IBM. This 'bombshell' was not found in a court document; instead it came from a reporter's interview at SCOforum. The scoop? 'SCO alleges that since 2001, AIX has contained code for which IBM does not have a license. Moreover SCO claims to have found internal IBM e-mails in which IBMers acknowledge this shortcoming.' With the announcement comes a hefty boost in SCO's stock price." SCO is also going to bundle its worthless linux licenses with its Unix operating systems.

34 of 440 comments (clear)

  1. What would be the likely impact on Linux? by beh · · Score: 3, Insightful

    What would happen to the *Linux* case, if SCO would turn out to be right on this one?

    At a glance, this seems like purely an AIX issue - so even if IBM should get into hot water with that one (I'm not saying they are going to be), what impact would it have on the linux case? (Say, besides the fact that SCOs war chest for their lawsuit would get a big refill)

    1. Re:What would be the likely impact on Linux? by beh · · Score: 4, Insightful

      Right - but it will eventually touch the linux case as well, if it turns out to be a true assertion.

      a) SCO would get money it desperately needs to continue fight its linux battle.

      b) They might try and use it to cast a different light on IBM, as a company ignoring laws and contracts, when they return to the linux case.

      c) And - that's the interesting question - is there a direct link between the two?

      As for the injunction - if there is no direct evident link between the linux case and this issue, then SCO is in safe waters, because the injunction probably doesn't forbid them to mention IBM at all. It'll probably just say, that SCO is forbidden from issuing further claims on its linux case to the media. Something which they haven't done with this...

    2. Re:What would be the likely impact on Linux? by LuxFX · · Score: 5, Insightful

      At a glance, this seems like purely an AIX issue

      Heck, this doesn't even seem to be an SCO issue....

      Even if IBM acknolwedges the emails -- all they say is that IBM might not own the AIX code. They don't say that SCO does! If it turns out that, say, Novell owns the AIX code instead of IBM -- that isn't going to help SCO at all. Announcing this on the SCOForum or wherever, and not in a courtroom discovery session... the point is just to spread FUD. And raise their stock value....

      This news isn't SCO's "smoking gun" -- it's their "steaming pile of crap".

      --
      Punctanym: alternate spelling of words using punctuation or numerals in place of some or all of its letters; see 'leet'
  2. Re:So Many Things wrong with this Picture by Ryosen · · Score: 4, Insightful

    The boost is a 14.5% increase in their stock price (as of 11:30am). That's hefty indeed. Anyone who has been holding their stock in SCO has no idea how to invest. Those who have been buying it when it's low precisely for days such as this when SCO releases yet another batch of their FUD, are quite shrewd.

    --

    Ryosen
    One man's "Troll, +1" is another man's "Insightful, +1".
  3. Re:So Many Things wrong with this Picture by b4rtm4n · · Score: 3, Insightful

    FTA

    "SCO says it discovered the e-mails in a mountain of documents IBM produced in discovery related to SCO's lawsuit against IBM over the Linux operating system. "

    No espionage involved.

    It's all FUD tho.

    "Indeed, SCO says the company's biggest investor, BayStar Capital, has been pushing SCO to drop its Unix business altogether and simply become a litigation machine, bringing intellectual property-related lawsuits. But SCO insists it remains committed to selling Unix software--when it's not busy fighting people in court."

    The same Baystar that claims that SCO must return its investment as SCO has been misleading them?

    --
    "goatse? What's that? Anyone have a link?" - AC
  4. IANAL by gowen · · Score: 3, Insightful

    and I'm not familiar with laws on discovery ... but if I'd found the "smoking gun" that was going to win me my case, I'd keep it under my hat, and then reveal it (in true John Grisham style) just when it looks like my case was going down the pan.

    --
    Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  5. Too Much DRA-ma by OxygenPenguin · · Score: 3, Insightful

    Please, let this soap opera end for the love of God. If i wanted to see bad acting and finger pointing on a daily basis, I'd stay home from work and watch Guiding Light or Days of our Lives.

    When will these dickless wonders get the information that their M$ backing is gone, and nobody wants them around anymore. Fuck off, SCO.

    --
    Read the only personal Runyon page out there.
  6. Deja Vu... by judmarc · · Score: 3, Insightful

    SCO claims IBM didn't have a license to use SCO's SVR4 product, which it obtained during the abortive "Project Monterey," to enhance its [Linux][AIX] offerings. SCO says it will be able to prove this through IBM's own internal documentation consisting of [records of contributions to Linux][e-mails concerning AIX licensing].

  7. Forbes doesn't like you. by underpar · · Score: 5, Insightful

    Did you notice that all of the related articles about Linux have a negative slant? They also didn't link to IBM's reply to the charges. The article is surprisingly useless.

    Maybe, just maybe, they're jerks. (girlish giggle)

    1. Re:Forbes doesn't like you. by joelgrimes · · Score: 4, Insightful

      I've noticed a pro-sco slant in forbes articles as well. Sometimes overtly in the text, but also frequently in the choice of stories they run (and don't run).

      Note in the last paragraph:

      "Linux zealots will no doubt write off SCO's latest claim as yet another PR ploy."

      Does that sound like unbiased journalism?

    2. Re:Forbes doesn't like you. by pjrc · · Score: 4, Insightful
      Linux is a giant risk, and primarily is used and supported by said zealots.

      Hmm... supported by said zealots, like....

      Like IBM ?
      Like HP ?
      Like Oracle ?
      Like Novell ?

      And primarily only used by zealots, like....

      Like Amazon?
      Like Morgan Stanley, Citigroup, and E*Trade?
      Like Autozone and DaimlerChrysler?
      Like the 60% of all websites, which are powered by open source software? (admittedly, some Apache servers run on commercial unix, freebsd, and some even run on windows).

      Yep... a bunch of slashdot obsessed zealots, who only need to....

      So I say, it's time to wake up and realize that what this guy is describing is accurate.

      Yes, Daniel Lyons is mostly likely accurate in reporting that FACT that SCO claims to have discovered new evidence.

      Wether Danial's OPINION, characterizing it as a "smoking gun", turns out to be an accurate remains to be seen. So far, Daniel Lyons, Laura Didio and Rob Enderle have "cried wolf" many times and not once has a so-called "smoking gun" turned out to be of any consequence. Maybe, just maybe, it will turn out to be important. Until then, perhaps you should "wake up and realize" that Danial, Laura and Rob are themselves zealots who've published many alarmist articles about the merits of SCO's case.

      Even if SCO finally has found some evidence to support their case... which is a pretty big "if" considering the history of their performance to date, the impact on Linux of a contractual obligation regarding code released in AIX, but not in Linux, remains to be seen.

      In the meantime, zealots here on slashdot, on groklaw, and at Forbes, Yankee group and Rob's one-man-show, the Enderle Group will make their predictions.

  8. Skeptical..... by dartmouth05 · · Score: 5, Insightful
    I am skeptical, and not just due to SCO's reputation for lying about their evidence and what they can or intend to prove. If SCO truly found a smoking gun, I don't believe they'd be shooting their mouth off to SCOForum or any other source--they'd wait until they got before a judge or jury and then hit IBM with it, so they'd be left scrambling in front of a fact-finder. Now, if there is actually anything to these e-mails, IBM has time to meet with their lawyers and work on spinning them.

    The only reason for SCO to release this info to the public now is to help the battle for public opinion, and if you want to do that, you should start with a source a bit higher up the chain then SCOforum, such as, say, the New York Times, the Chicago Tribune, or some other well reputed paper.

  9. Re:Are traders really that dumb? by DAldredge · · Score: 5, Insightful

    One needs to know a lot about human psychology to do well in the market, just knowing a lot about business doesn't make one rich.

  10. Re:So Many Things wrong with this Picture by Phigs · · Score: 3, Insightful
    How about IBM drop AIX like a bad habit and go full swing into linux. Where's your lawsuit now?
    The lawsuit would be based on profits made off of the sale of AIX since 2001 (when according to SCO the offending code was added).
  11. As usual by Trailer+Trash · · Score: 3, Insightful

    This has nothing to do with Linux, although I'm sure SCO will try to make it sound as if it does.

    It'll be interesting to see how this turns out, if it's anything, since my understanding is that during discovery you have to stick to what you're looking for. In other words, it's not a fishing expedition. This is definitely fishing.

    But I'm not a lawyer, although I'd have little trouble standing up to SCO's lawyers in court...

  12. On what planet? by Anonymous Coward · · Score: 5, Insightful

    They are doing so well legally, that the Daimler-Chrysler case got tossed, except that they are allowed to try the claim the response took too long. The judge in the Novell case told them he saw no evidence the copyrights were transferred to SCO in accordance with federal law. The 'Millions of lines' of SCO code copied verbatum into Linux has deteriorated into some bizzare 'non-literal copying' legal theory which means IBM's motion to declare there is no SCO copyrighted code in Linux appears to have a very real chance of being granted. Just where is this heap of evidence Darl? The only heap produced by SCO seems to fall under the catagory of fertilizer.

  13. Yawn... by rewt66 · · Score: 5, Insightful

    Wake me up when SCO actually says it in court. What they say to the press is so disconnected from reality that I refuse to bother worrying about "what if" this one happens to actually be true.

  14. Missing the important point... by Overt+Coward · · Score: 4, Insightful
    All of the replies I've read are focusing on SCO's licensing claims and possible pump-and-dump stock action. The thing I read that made my ears perk up was:

    SCO is also going to bundle its worthless linux licenses with its Unix operating systems.

    Seems to me that this is a nice end-run for SCO to allow them to claim that they have "sold" a whole bunch more of those Linux licenses (as part of a "package deal") in order to give that license some additional, but false, credibility.

  15. As with everything else that comes out of SCO by y2imm · · Score: 4, Insightful

    Believe it when you see it in court, and nowhere else. If we took them at their word, we'd (most of us I suspect) all be $699 poorer by now. To my recollection there has not been a single release from SCO which has not been spun or otherwise doctored the straight goods into something more palatable for current and potential SCO investors (if there's such a thing).

  16. Re:I'm in the wrong business! by Al+Dimond · · Score: 4, Insightful

    hah... my dad (who's an environmental lawyer) frequently tries to convince me that law would be a good thing to do.

    Now I'm currently pursuing CompE, but there's apparently lots of opportunity for people with technical knowledge, good logical skills (they say that computer people often do well in law because of the type of logic involved), and good writing skills.

    However, lawyers work their asses off, have to deal with other lawyers, and typically only get big money for representing morally bankrupt assholes.

  17. Daniel Lyons is a shill for SCO. by eddy · · Score: 4, Insightful

    The article is surprisingly useless.

    What do you mean useless? Lyons did his job as a paid shill for SCO and made sure the stock got pumped today.

    While the lambs are buying into SCOX on the recommendations of SCO-paid shills like Lyons and The Enderle Troll (who just a few days ago called SCOX a great investment), the insiders and big holders are having a nice little lamb slaughter unloading their stock.

    Note how SCO didn't go to court with their "new hot evidence", they went to a paid shill. Now, why is that?

    --
    Belief is the currency of delusion.
  18. Re:So Many Things wrong with this Picture by YU+Nicks+NE+Way · · Score: 3, Insightful
    The relevance of these allegations to a claim of misappropriation of information is pretty clear. If true, this would be a completely acceptable basis for extending the lawsuit.

    And as for this:
    you cannot share with the world information you found in confidence during discovery...Darl is going to be found in contempt.
    Nope. He didn't reveal any information that was released in confidence -- he revealed that they have such information. That's a completely different thing.
  19. Doesn't Matter in IBM Case by gral · · Score: 3, Insightful

    If they did find stuff like that, it would not matter in the Multi-Billion dollar lawsuit at all.

    They would have to start another lawsuit with this claim. The current MB lawsuit is about misappropriation of code to linux, not about AIX at all.

    So THIS smoking gun, means nothing to the lawsuit they are elluding to. AFAIKT

    --
    Scott Carr
  20. IBM patents by scharkalvin · · Score: 4, Insightful

    IBM has already asserted that SCO's code contains some violations of IBM patents, so if SCO pulls out this gun, IBM may well pull out a cannon.

  21. Re:So Many Things wrong with this Picture by Saeed+al-Sahaf · · Score: 4, Insightful
    1) SCO received those emails under a court order.

    Sure, of course SCO got emails. But do they say what SCO says they say? How do we know this? SCO says a lot of things

    2) SCO only licenses IBM to distribute AIX code on Intel platforms, not PPC platforms, and that is the crux of this announcement.

    Do we know this? SCO says so, but they say a lot of things

    4) The fact this is AIX not Linux is interesting. Essentially, this has nothing to do with SCO patent claims against Linux.

    This has never been about Linux, had it been, SCO would have nickled and dimed at smaller more edible Linux companies, not IBM.

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
  22. Re:I'm in the wrong business! by ahodgson · · Score: 5, Insightful

    However, lawyers work their asses off, have to deal with other lawyers, and typically only get big money for representing morally bankrupt assholes.

    As opposed to computer people, who work their asses off, have to deal with end-users, and practically never get big money while working for morally bankrupt assholes.

  23. Re:So Many Things wrong with this Picture by AndroidCat · · Score: 5, Insightful

    He didn't reveal that they have such information, he claimed they have it--just like ownership of UNIX, BIGNUM lines of infringing code, etc. Certainly no one would ever accuse Darl of actually releasing information. ;)

    --
    One line blog. I hear that they're called Twitters now.
  24. Re:Leap of logic by schon · · Score: 4, Insightful
    The funniest thing about this is that this is just SCOX demonstrating (again) their complete and utter lack of reading comprehension skills.

    Read the Project Monterey Agreement - the limitation on specific archetecture applies to SCO, not IBM!

    IBM was free to use "SCO's" code on any platform they choose, but SCO was not allowed to do the reverse. The rights of each party are explicitly spelled out separately. IBM gets to use SCO's code on any platform they choose (including PowerPC), SCO can only use IBM's code on i386.

    (c) License to SCO of Licensed IBM Materials and IBM Project Work

    The rights and licenses granted in this Section (c)(2), with respect to the IA-64 Product, shall be limited to use and distribution solely in connection with SCO products designed to operate on the Intel Architecture


    There is no corresponding paragraph in the section entitled "License to IBM of Licensed SCO Materials and SCO Project Work"
  25. Lord God Billy Bob! by SpamHeart · · Score: 3, Insightful

    Who on earth cares what McNugget tells a paid stooge of Lyon's caliber? So now its AIX that contains....

    'millions of lines of line-for-line copied code'.

    Paint up the stock price and dump those shares, boys. See any insiders buying this turnip?

    BFD.

    SH

  26. "Smoking" (when SCO says it). by Jaywalk · · Score: 5, Insightful
    The "smoking gun" may actually net some money for SCO, but keep in mind that SCO's press statements usually just mean their execs have been smoking something else. If the emails say what SCO claims and if that employee knew what he was talking about and if the emails can be used in court, then maybe IBM owes some back licensing fees on AIX.

    This has nothing to do with Linux, or IBM's motion for a preliminary injunction. IBM has asked the court to find that SCO has found no UNIX in Linux. SCO's "smoking gun" says they found UNIX in AIX. Gee, big surprise. That's why IBM pays licensing fees for AIX. All SCO is claiming is that they should have paid more. Of course Forbe's -- impartial reporters that they are -- can't resist a gratuitous jab at "Linux zealots", but Linux just is not involved here.

    Nothing to see here, just SCO blowing their usual smoke.

    --
    ===== Murphy's Law is recursive. =====
  27. Re:So Many Things wrong with this Picture by schon · · Score: 4, Insightful

    SCO only licenses IBM to distribute AIX code on Intel platforms, not PPC platforms, and that is the crux of this announcement.

    Actually, if you read the Project Monterey agreement, you'll find that it's SCO who was only licensed to use IBM's code on Intel. IBM was not restricted to any platform at all.

    SCO got it wrong *again*.

    this has nothing to do with SCO patent claims against Linux.

    I'm sorry, but WHAT PATENT CLAIMS?!?!? SCO doesn't even *HAVE* any patents, let alone made claims against Linux.

  28. Re:So Many Things wrong with this Picture by slipstick · · Score: 3, Insightful

    Except that everything SCO has said, at least up to this time, has been bogus!

    Note that SCO has claimed since the start that they have a "mountain of evidence", yet they have yet to provide any of it to IBM, which is why in IBM's cross-complaint(effectively a counter suit), they are filing for a Declaration that they did NOT infringe on any of SCO's copyrights vis-a-vis any of IBM's work with Linux. The truth is shocking isn't it? With regards to IBM's Linux work, SCO NEVER filed a copyright claim against IBM, they never filed a patent claim against IBM, and they've dropped their trade-secret claim. In other words, SCO's whole case rests on a nebulous and purile reading of a contract. Which will very likely be thrown out soon after the judge gives IBM the win in their Summary Judgement on their copyright cross-complaint.

    Secondly, the "news" article is sooo chalk full of mistakes that the reporter should be ashamed of himself. He's fallen for SCO's story hook, line & sinker. Note how he calls it a suit against IBM over Linux, well as I've pointed out above, SCO never filed any suit over Linux per-se, they filed a suit over a contract claim with AIX.

    Furthermore, the story claims that the SCO suit was filed over code that SCO claimed was "stolen". The facts of the filing couldn't be further from the truth! SCO has never claimed ownership or ownership rights over any code IBM has contributed to Linux, at least in the court filings. They've made all kinds of statements in public.

    So this latest claim is just more of the same. First, it could easily be falsely represented information from SCO. Nothing they have said in public has been true. If you can find one schtickel of evidence for SCO's public claims I'm sure they would love to have it because they have shown none themselves. You don't need to believe me, just go read the court filings. IBM would not have asked for Summary Judgement regarding their copyright claim if SCO had handed them ANY evidence of copyright violations. What was SCO's answer to the request for Summary Judgement? "We need more time, and we need more discovery." In other words, SCO knows they are royally screwed on the copyright claim.

    Secondly, even if SCO has found evidence of License violations by IBM over AIX 5L. This in NO WAY affects Linux. Note that SCO's public statement isn't that they found code that IBM copied to Linux, it's a claim that IBM didn't have a License to use SVR4 in AIX 5L. SCO still hasn't presented any evidence of SCO code in Linux, and this new statement doesn't indicate otherwise.

    In fact SCO has so tried to twist everything into a pretzel shape of their liking that I don't believe a single word they say. This article is very likely more of the same and the writer made himself part of the scam by publishing an article that completely misrepresents the original case and derides both IBM and "Linux zealots".

    By the way, if you don't believe me that SCO has absolutely NO evidence go to Groklaw and follow the "Legal Docs" link. Than read the court filings by both IBM and SCO. While we aren't privy to the evidence submitted under seal, it is clear from the back and forth of the filings that SCO has shown no evidence of wrong doing by IBM.

    --
    Sure information wants to be free, but how much are you willing to pay for the packaging?
  29. Personally, I'm ignoring that story... by vegaspctech · · Score: 3, Insightful

    ...until I see or hear it come from someone who isn't Daniel Lyons. That guy has consistently been on about how "Linux-loving crunchies" should "wake up" because "these guys in Utah are no dummies"... "What SCO wants, SCO gets"... "SCO is on to something"... etc., etc., ad infinitum... As far as I know he has only once briefly entertained the possibility that SCO might be anything but a bunch of shining, white knights, and as far as I'm concerned his copy is of absolutely no value. Unless, that is, you have caged birds or want for toilet paper.

    --

    Making the world a better place, one psychotic episode at a time.

  30. Barratry is illegal, too by msobkow · · Score: 3, Insightful

    Barratry, fraud, libel -- there are a few terms for what new-SCO likes to pull.

    What Darl and his crack pipe forget, as per usual, is that AIX5L is AIX + Linux compatability. Monterey was specifically related to an x86 port of AIX, which as far as I know was never done.

    I seriously, seriously doubt that IBM's lawyers allowed AIX5L to be released without addressing the engineer's notes about any IP issues. It's perfectly normal to flag potential issues to management, and hardly a "smoking gun."

    Anyone who has ever dealt with IBM's legal team knows damn well they cover all their bases. If someone mentioned the possibility of a problem, I am quite comfortable assuming IBM's lawyers followed up on it before proceeding.

    Will somebody please just shoot SCO's "lawyers" already? There has been more than enough damage to the industry over their bullshit, and it's far past time for them to prove something, shut the hell up, or be arrested on barratry and worse.

    --
    I do not fail; I succeed at finding out what does not work.