SCO Caps Legal Expenses At $31 Million

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SCO Caps Legal Expenses At $31 Million

Posted by timothy on Wednesday September 1, 2004 @04:08AM from the nice-prime-number-of-millions dept.

uniqueCondition points to a story on News.com, writing "With SCO's legal costs reaching $7.3 million in their most recent quarter, nearly half of the $15 million it has spent in the last five quarters, SCO can't afford this kind of litigation. They have therefore limited their payment to $31 million for the entire case and is giving their legal team a larger slice of any settlement SCO achieves. Under the current agreement, the firm's contingency payment is 20 percent of a settlement. Under the new agreement, that increases to a range of 20 to 33 percent." uniqueCondition links also to coverage at Techrepublic.com, InformationWeek and The Inquirer.

22 of 341 comments (clear)

To bail or not to bail by AKAImBatman · 2004-09-01 04:09 · Score: 5, Insightful

I'd say that their legal team would probably bail under this new contract (given that they probably don't expect to win), but then I read the "capped" number. 31 million dollars?!? Isn't that a bit like capping baseball players? i.e. They already make so much money that the cap doesn't matter in many ways other than principle.

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1. Re:To bail or not to bail by kevmit · 2004-09-01 04:31 · Score: 5, Funny
  
  "Principles? Remember who we're dealing with..."
  Exactly. Note to SCO: "Scruple" and "Screw People" are not the same thing.
What exactly is a larger slice by Trigun · 2004-09-01 04:10 · Score: 5, Funny

of total annihilation?

Sounds like a sound investment to me!
Begging to be bought out by SeanTobin · 2004-09-01 04:10 · Score: 5, Interesting

SCO is just begging to be bought out now. Take a look at this gem from the end of the news.com.com article:
SCO also announced its board has approved a revised shareholder rights plan designed to make a hostile takeover harder, though no such attempts are under way, McBride said.

"Where the share prices are at now, we are concerned about somebody who would be opportunistic. What's to keep IBM or somebody else from coming in and taking (SCO) out at a much lower price than the claims you have on the table?" he asked.
Ahh... the joys of watching scumbag companies dangle in the wind. I almost feel sorry for their shareholders.

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1. Re:Begging to be bought out by Trigun · 2004-09-01 04:12 · Score: 5, Insightful
  
  I almost feel sorry for their shareholders.
  If they weren't comprised of the SCO board of directors, that is...
2. Re:Begging to be bought out by UnknowingFool · 2004-09-01 04:40 · Score: 5, Interesting
  
  IBM could just buy SCO and put it out of everyone else's misery, and save money doing it. Plus, they could get the satisfaction of firing Darl McBride.
  That would be the quick and easy solution. I think IBM wants it to be painful for SCO. If IBM wins on its counterclaims of infringement, it could own SCO outright. With its portfolio of patents and copyrights and heavy purse strings, IBM could bankrupt SCO through legal battles and settlement claims. As the major creditor, IBM then owns SCO.
  It could then do worse then just to fire Darl. As the owner of SCO, it then has access to all SCO's files. If it finds any legal wrongdoing on Darl's or any other exec's part, it could pursue legal action against them for fraud, perjury, damage to the company, etc. They could then go after all of the money he's gotten so far. This would send a clearer message to anyone who might think about pulling another stunt like this.
  
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Oooh, a bigger fraction of zero by Anonymous Coward · 2004-09-01 04:10 · Score: 5, Funny

[SCO] is giving their legal team a larger slice of any settlement SCO achieves.
SCO's "legal team?" Given their performance to date, I imagine that the sole member of their "team" is probably Chim Chim (the monkey from Speed Racer). He'll be a sad monkey though, cause 22-33% of nothing means no more bananas.
1. Re:Oooh, a bigger fraction of zero by Anonymous Coward · 2004-09-01 05:05 · Score: 5, Funny
  
  The Judge has been very careful, very measured, and I guess, just giving SCO time to really make sure, before they meet his wrath.
  
  Uh... the judge is *meant* to be impartial. Unless...
  
  Judge's verdict: Darl McBride, SCO board and lawyers sentenced to death.
  Shock in courtroom.
  
  Darl starts mouthing off... "this isn't a murder trial".... "guilty of what?"... "this'll be struck down on appeal, asshole".
  
  "Silence!" yells the judge with such conviction that those present turn and face him.
  
  The judge, face covered by a cowl, takes one gloved hand, and makes a strangulation gesture, slowly but surely tightening his grip. As the SCO team start to have severe trouble breathing, a chink of light moves over the judge's cowl, revealing his face.
  
  "Tux!" gasps McBride with his last breath.
  
  Judge Tux laughs evilly as McBride and cronies expire, one-by-one.
  
  Hundreds of geeks rush over the now still corpses of SCO, and hug Judge Tux in gratitude.
  
  Tux sits back with an expression of stoned satisfaction.... well, the same damned expression he *always* wears, actually.
  
  "One thing," asks one of the geeks. "Where did you get those supernatural powers? I always thought you were a simple penguin, and yet... what you did there, I mean...."
  
  A small red figure steps out of the shadows.
  
  "Tux?" smiles the cute, but evil, sneaker-clad daemon. "Oh yes. Tux is just an ordinary penguin. I think he forgot that without me, he would be... nothing. But I grow tired of his arrogance...."
  
  The daemon takes his hand and makes the same strangulation gesture as Judge Tux made before. Tux holds his flippers to his throat, but is powerless to prevent his inevitable death at the hands of the daemon.
  His corpse lies lifeless on the floor, surrounded by disbelieving geeks.
  
  "So.... *BSD is dying, is it, my geek friends?"
  
  Geeks shake their heads nervously.
  
  "Too late!" yells the daemon. "Looks like I'm the only one who won't be dying around here today".
  
  With a wave of his hands, BSD daemon slams every exit in the room shut and sets the curtains on fire.
  
  Within minutes, the room is a scene of horror and carnage; there is no escape for the massed ranks of business reporters, and Linux geeks.
  
  BSD daemon smiles....
  
  "Netcraft... you're next."
  
  The End.
source license revenue from where by alw53 · 2004-09-01 04:12 · Score: 5, Insightful

What I want to know is: who is paying them 660K in sco source licensing reveunue last quarter? Did Microsoft make another payment, did they recategorize other income into that program; what's the deal? It can't possibly be real income.
1. Re:source license revenue from where by BurritoWarrior · 2004-09-01 04:17 · Score: 5, Informative
  
  It's a combination of EV1 revenue being booked and the fact that they now count "Unix licenses" in the deal since they give out a "Linux license" with every Unix purchase.
SCO Lawyers by bucketoftruth · 2004-09-01 04:12 · Score: 5, Insightful

I kinda wish I was a SCO lawyer. They're making phat bank and they must know it's all going to fall apart in the end. They'll walk away with pockets full of cash and they won't be liable for anything I bet. (IANAL)
On the day of closing statements... by Vexler · 2004-09-01 04:16 · Score: 5, Funny

Judge: You may go ahead with your closing statement.
SCO: Yes, Your Honor. Ladies and gentlemen, this is a case about intellec... (looks at watch abruptly) Oh, sorry, I guess the fund ran out just now. Another day, another trial. (Picks up briefcase, then bolts.)
The *Actual* FleeceMasters Here... by MooseByte · 2004-09-01 04:17 · Score: 5, Insightful

As someone pointed out over at groklaw, 31 million is almost exactly all SCO is now worth in reserves, assets, etc. Team Boise ain't exactly sacrificing much here.

Everyone talks about SCO running a sleazy poorly executed shakedown (I agree), but I'm wondering if Boise and Crew have just shown us how to run a sleazy *brilliantly* executed shakedown - of SCO.

And from reviewing all the filings, it's clear Boise et al weren't exactly working overtime with their best and brightest in putting the case together.

Boise: "Hey look, it's a moron with tons of money. Let's string him along and see where it takes us."

The would-be con men have been conned, and damn well I'd say.
A large percentage of the settlement? by Zangief · 2004-09-01 04:19 · Score: 5, Funny

Does this means that if the judge "settles" that Darl spends his next 10 years in jail, he actually gets 4 years, and the lawyers get 6 years?

Sounds good to me...
opportunistic by HogGeek · 2004-09-01 04:21 · Score: 5, Funny

I think every slashdotter should chip in $100, and WE buy SCO!
1. Re:opportunistic by sploo22 · 2004-09-01 04:39 · Score: 5, Funny
  Let's see, if 10% of all slashdot members contribute, that's $70 million right there. I've got a few ideas:
  
  The Half-Life 2 engine
  
  3D Studio Max
  
  WinFS
  
  Hire a team of /. editors who actually do something
  
  Nah... scratch that last one. It'll never happen in my lifetime anyway.
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They. Are. Smoking. Crack. by Anonymous Coward · 2004-09-01 04:27 · Score: 5, Funny

Saving face?

SCO: Hello Mr. Lawyer, will you take on our surefire case against Linux?
Lawyer: Surefire? Ha ha... *ahem*
(SCO hands lawyer large wad of cash)
Lawyer: Of course I will, my good man.

Many large wads of cash later:-
SCO: Mr. Lawyer, we cannot afford to pay you any more. Will you continue the battle if we divide the spoils with you?
Lawyer: What spoils?
SCO: When we win our case
Lawyer: Win? Have you been smoking crack again?
SCO: We paid you all that money.... please go along with this.
Lawyer: We'll *continue* to go along with this if you pay us more money. Why do you think we took this on in the first place?
SCO: Do you work for magic beans?
Lawyer: No, fuck off.

Press release issued where Darl McBride mentions something about "focusing on our core business of selling Unix". Everyone laughs.
The worst part is... by DownWithTheMan · 2004-09-01 04:29 · Score: 5, Interesting

They still believe they can win and are in the right... I live in Provo UT (student at BYU; yes yes I know crazy mormons blah blah blah, i totally agree)... Anyways I go to the same church ward as Ralph Yarro (Chairman of the Board of SCO, and CEO of Canopy Group)... Every Sunday I love to slam Ralphie with questions about what's going on on the SCO Titanic... He tells me over and over that they (SCO) have the moral highground and are in the right... He also says that in his heart of hearts he believes they will win the lawsuite against IBM... And after a win against IBM, he thinks the lawsuites like the ones against Chysler and AutoZone, will all just start to drop in... Whatever crack that guy's smokin'... I want some...
Muppets by chill · 2004-09-01 04:31 · Score: 5, Funny

Just to show my age...

The first thing that popped into my mind was an episode of the Muppett Show I was when I was but a wee lad.

Fozzee Bear wanted a raise and brought in his agent (a rat) to negotiate w/Kermit the Frog. Kermit worked the rat into a frenzy (100% raise...no, 200%...no, 300%!) getting everyone all hype.

Then Kermit left and the rat asked Fozzee what he made before. $0. The rat was, well now you get 300% of that! And remember, I get 30% of THAT!

Sad.

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This was on GrokLaw .. by talexb · 2004-09-01 04:40 · Score: 5, Informative

.. almost 18 hours ago. See this page.
SCO city to city tour by Anonymous Coward · 2004-09-01 05:11 · Score: 5, Informative

It looks like they are planning to go on the road to spread their FUD:

http://www.sco.com/partners/city_to_city/2004/

It might be a good idea to organize groups of people to show up and voice some opposition. Handing out free GNU/Linux distros would be fun too!
Re:Question by chihowa · 2004-09-01 06:00 · Score: 5, Interesting

66.35.250.150 (resolved to slashdot.org) scanned me for open proxies after I posted. It then poked around on my webserver for a bit.

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