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IBM Drops Patent Counterclaims

Mr. Slant writes "According to this article on Groklaw, IBM is dropping their patent counter-claims. Why? It's not because they think they'd lose, but rather because SCO wants to waste more time litigating. There's still some question over whether SCO will be able to pay the rest of their legal bills, given how much cash they're losing each quarter." From the article: "Here's a simple rule of litigation. You never, ever offer to drop anything you think you'll need for victory or to make yourself whole. Litigation is always a cost-benefit analysis. You have to have the prospect of a sizable enough win to pay your lawyer, or you will find it hard to get one, or, like Boies Schiller, the lawyer will want its money up front. IBM did the math, and SCO isn't looking like deep pockets any more, is it, now that Boies Schiller has drained them of pretty much all they had? So, IBM's practical analysis apparently was that it's worth more to get the thing over with on time than to go after counterclaims against a defendant with no money in its pocket to pay damages or royalties, even when IBM won. Plus, there is some strategy here too. Sometimes in chess, you'll let a pawn be sacrificed to set up a checkmate."

12 of 137 comments (clear)

  1. SCO? where have i heard this before... by Anonymous Coward · · Score: 4, Funny

    This thing is still going on? What the hell? Can't they just get it over with and die?

  2. So I guess lawyers have no soul? by charon_1 · · Score: 4, Funny

    "the lawyer will want its money up front."

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


    Dear Darl & Chris,
    I'll have a Big Mac, large fries and a Coke.
    Thanks!

    --
    Trolling is a art,
    1. Re:Dear Darl & Chris, by varmittang · · Score: 4, Funny

      Ooooo...and an Apple Pie.

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  4. So SCO gets no punishment whatsoever. by philovivero · · Score: 5, Interesting

    The state of litigation in the United States is so bad. I've been very closely involved with another lawsuit where the plaintiff was very SCO-like. In the end, he suffered no real harm in his litigious behaviour. The defendents lost tens of thousands of dollars... to the lawyers.

    The judge, even when presented with overwhelming evidence that the case was frivolous, let it go ahead.

    From this vantage-point, it looks like the lawyers and judges have set up a system where such litigation is encouraged, and the only winners are... you guessed it, the lawyers and judges.

  5. Awww... by ElGameR · · Score: 4, Funny

    I really wanted to see two large companies locked in an epic duel to the death in the arena of US Federal Courts, only to have the SCO beheaded due to lack of funds! Well, anyway, I'm off to english class...

  6. Go Go Big Blue by fragmentate · · Score: 4, Interesting

    I'm glad they decided to pull back. It shows how savvy they really are.

    But who can remember when IBM was the monstrosity of the market? When they were the litigious ones? The stiff-suited giant wasn't always this open to reason. I think what sets them apart is they wised up, where others believe they will always be the status-quo.

    IBM used to think that... Now they know you have to constantly raise the bar. This action shows they know how to.

  7. Stuff that ...mattered... by vlad_petric · · Score: 5, Informative

    The much more interesting story from groklaw is that SCO's motion for further delay was denied

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    The Raven

  8. IBM's Cunning by Shadow+Wrought · · Score: 4, Insightful
    IBM has some very smart legal folks working on their behalf and this is a pretty clever move on their side. They're not going to get money on the counterclaims to balance the cost of pursuing them and SCOX's delaying tactics have been based off of having to defend themselves against the counterclaims.

    It would be intersting to know if this was IBM's strategy all along. Often time lawyers (especially prosecutors) will add extraneous items to a complaint or motion just so they can then kick it out later and look like the good guy.

    SO they are either smart or really smart.

    --
    If brevity is the soul of wit, then how does one explain Twitter?
  9. To support the article ... by linumax · · Score: 5, Informative
  10. The ultimate corporate insult? by FlyByPC · · Score: 4, Funny

    "Well, we would sue you, but even though we win, your sorry company wouldn't be able to pay, anyway..."

    I like it. Not only is SCO looking pretty pitiful these days, but to be basically deemed to not be worth the six cents for the bullet to put it out of its misery is, I think, a fitting punishment.

    And IBM as the good guys. Wow. Maybe if they keep this up, I'll forgive them for MicroChannel...

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    Paleotechnologist and connoisseur of pretty shiny things.
  11. We don't need no stinking nukes by lildogie · · Score: 4, Insightful

    IBM knows they have what it takes to crush SCO, so they don't have to use the nuclear option (i.e. their patent portfolio).

    Plus they want to get their revenge before SCO starves to death. No use kicking a dead horse, eh?