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SCO Having a Hard Time In Court

jamienk writes "The beginning of the end is in sight. SCO has been reprimanded for the second day in a row by a second judge in their campaign against Linux. Basically, Judge Wells ruled that SCO's vague claims of IP infringement will not be allowed to be heard in court, since it was all clearly a poor attempt at avoiding showing any evidence. Next, SCO will face compelling counterclaims against it by IBM." From the article: "At issue was whether SCO would be allowed to sneak in new allegations and evidence in its experts' reports that it failed to put on the table openly in its Final Disclosures, in effect, as IBM described it, reinventing its case at the eleventh hour. The answer today was no, it won't be allowed to do that. IBM had asked for this relief: 'Insofar as SCO's proposed expert reports exceed the Final Disclosures, they should be stricken.' More details will be arriving in a while, but assuming the early reports are accurate, we may assume that this is what the Judge has ordered." This is a follow-up to a story we discussed yesterday.

29 of 120 comments (clear)

  1. the ruling should have been . . . by queequeg1 · · Score: 5, Funny

    To paraphrase the ruling "Insofar as this proposed item exceeds anyone's tolerance for blatant dupes , it should be stricken."

  2. Sure glad by ackthpt · · Score: 2, Insightful

    Sure glad I don't have any SCO stock.

    The end is in sight and will probably mean the dissolution of SCO assets as the company folds up and dies, since this was a last gasp ploy to hit a litigation jackpot of billions of $ from IBM, et al.

    Sad to see, as SCO was once a respectable company in Santa Cruz, CA.

    --

    A feeling of having made the same mistake before: Deja Foobar
    1. Re:Sure glad by kimvette · · Score: 4, Informative
      Sad to see, as SCO was once a respectable company in Santa Cruz, CA.


      The current SCO is a different company than the the old SCO (Santa Cruz Organization) to which you refer.

      http://www.answers.com/topic/tarantella-inc-1
      http://en.wikipedia.org/wiki/Tarantella%2C_Inc.

      The new SCO is pure evil and I would not be surprised to learn that Darl McBride is a pedophile and baby eater, and that he kicks newborn puppies for fun.
      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  3. You got some SCO on your face by straponego · · Score: 4, Funny
    Too bad IBM can't realistically go after SCO's backers (MS, Sun)... but as long as SCO is vaporized and the scum who ran the scam have all their assets seized, I'll be content. Prison time would be appropriate given the damage they did and attempted to do to honest programmers and the economy in general, but... probably best to just end the whole farce and move on.

    What do you mean, vindictive?

  4. Re:Who has a clear timeline? by venicebeach · · Score: 3, Informative
    Part of this week's ruling was that the IBM-SCO case will not be heard until Novell vs SCO is taken care of. So the trial date for IBM/SCO has not been set yet:
    It appears that judicial economy and the interests of all the parties will be best served by trying the Novell case-set to begin on September 17, 2007-prior to the instant action. After deciding the pending dispositive motions in this case, and after deciding the dispositive motions in Novell, which should be fully briefed in May 2007, the court will set a trial date for any remaining claims in this action. The pending dispositive motions will be heard on the following dates: Thursday, March 1, 2007 (3:00pm-5:00pm); Monday, March 5, 2007 (2:30pm-5:00pm); and Wednesday, March 7, 2007 (2:30pm-5:00pm). The parties are directed to submit a proposal by no later than January 12, 2007, setting forth the most efficient sequence for hearing the motions, with both parties having equal time on each motion.
  5. OT: Cheap Laugh by Nighttime · · Score: 5, Funny

    As SCO's share price seems to be plummeting a bit today, I decided to download a stock ticker for my desktop to watch the price fall in all its glory. The one I went for, CoolTick, is limited to two symbols in the trial version. Fine by me, I only want to watch SCOX. I now have scrolling across the top of my screen "SCOX v 1.25 -0.75 N/A Purchase License".

    Well, it made me chuckle anyway.

    --
    I've got a fever and the only prescription is more COBOL.
  6. Re:Three's the charm! by mean+pun · · Score: 4, Informative
    This is a great story! Let's see it posted three times to slashdot! Everybody submit the story from a different angle!
    By a strange coincidence, you're the third one to say this, and your angle is indeed different from the other ones. Unfortunately, all of you have overlooked the juicy bit of this news item, buried deeply in the /. text:
    SCO has been reprimanded for the second day in a row by a second judge in their campaign against Linux.
    If one SCO disaster is newsworthy, two disasters in as many days surely is also newsworthy.
  7. So much for connecting to Slashdot at Lunchtime by StressGuy · · Score: 4, Funny

    ...thanks...I'm going to need to stop and buy more beer on the way home tonight to wash that visual out of my head.

    --
    A goal is a dream with a deadline
    1. Re:So much for connecting to Slashdot at Lunchtime by Sloppy · · Score: 2, Funny

      Ick, I know. I think I just went permanently limp from the thought of owning 100 shares of SCO stock.

      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  8. Re:Er, dupe? by KokorHekkus · · Score: 4, Informative

    No, no dupe. First story was about Judge Kimball affirming an order Judge Wells maid (the striking a lot of evidence) and this story is about a hearing that Judge Wells held today.

  9. Re:Er, dupe? by psykocrime · · Score: 3, Insightful

    Not a dupe. There really have been two distinct SCO stories in the last 24 hours or so.

    --
    // TODO: Insert Cool Sig
  10. Re:So, when do we finally get to watch... by Basehart · · Score: 4, Funny

    I hope SCO doen't come after me next! I tried to install Linux on a pile of dog shit a few weeks ago and am now wondering if I didn't somehow infringed on SCO's intellectual property.

  11. Wrong! by Anonymous Coward · · Score: 4, Insightful

    "Basically, Judge Wells ruled that SCO's vague claims of IP infringement will not be allowed to be heard in court".

    This is completely wrong!

    The CLAIMS will be heard in court. However, most of the EVIDENCE (or lack of) to back those claims has been ruled inadmissable because SCO did not comply with the court's order regarding specificity (show us the code!).

  12. SCOX: Down, Down, Down it goes.... by Picass0 · · Score: 2, Informative

    1:06 EST SCOX 1.21 Down 39.50%

  13. SCOX down 40% today by Animats · · Score: 4, Informative

    SCO's stock went into a screaming dive today. It's down 40% today on heavy trading, about 20x the normal volume. The mainstream business press has picked up the story, and, this time, there's no ambiguity.

    • "SCO Losing Case Over Linux Code" - Associated Press "Kimball gave Wells' reasoning his full support Thursday, finding that SCO had deliberately failed to show any proof of its claims."
    • "SCO Gets TKO'ed" - Forbes "The judges seem to be growing frustrated with SCO. For years, the company has gone around making outlandish claims--including many to Forbes--about IBM stealing huge amounts of code from Unix. Yet SCO has never shown any evidence to back up its claims."
    • "Investors Abandon SCO" "Investors fled SCO Group's stock on Friday, voting with their feet after a federal judge gutted its lawsuit against IBM. "

    Forbes seems to have really had it with SCO. Much of SCO's early FUD appeared in Forbes articles, which now makes Forbes look bad.

    1. Re:SCOX down 40% today by Soko · · Score: 3, Informative

      Wonder if Rob Enderle has, too.

      From http://www.technewsworld.com/story/opinion/33529.h tml:

      SCO has just over US$60 million in resources to sustain it while it fights IBM (NYSE: IBM) Latest News about IBM in what clearly is one of the most volatile wars in the history of technology. What has been very interesting is that SCO publicly has been given almost no chance of winning, while privately the company has convinced several folks, including me, that it has a strong chance.

      Enjoy your crow dinner, Rob. For desert is Humble Pie.

      Soko

      --
      "Depression is merely anger without enthusiasm." - Anonymous
    2. Re:SCOX down 40% today by jimfrost · · Score: 4, Interesting
      Back when Enderle was writing a lot of pro-SCO articles I corresponded with him a few times on it. He was convinced that SCO would win largely because they could put themselves in front of a jury as the little guy being beaten up by the big guy.

      I completely disagreed; at the time, it seemed clear to me that SCO's entire case rested on an interpretation of the contract that amounted to SCO owning all the code that IBM wrote independently. I don't think juries generally like the idea of someone using vague contractual language to grab others' work, especially seeing as SCO didn't even do the original work.

      I also argued that it was unlikely SCO had anything to show, given that they'd already been reprimanded for missing discovery deadlines; now I am not a lawyer but my impression is that ignoring the judge's orders repeatedly is not good for your case. And indeed, that seems to be what has caught them out. Enderle told me he'd been privy to some of the stuff they were going to show the court, but my guess is that he didn't understand what they were showing him well enough to realize they were blowing smoke.

      I am convinced that SCO figured IBM would just pay them to go away, everyone would make a quick buck, and that would be that; it would probably have been cheaper than this protracted court battle. But IBM thinks longer term. Having put up this kind of fight, do you think anyone else will ever sue them over Linux IP? This fight will make Linux largely lawsuit-proof.

      It will be interesting to see what Enderle says about this decision, if anything. SCO clearly hoodwinked him. But as wrong as he was, he wasn't alone.

      --
      jim frost
      jimf@frostbytes.com
    3. Re:SCOX down 40% today by mysticgoat · · Score: 2, Interesting

      I am convinced that SCO figured IBM would just pay them to go away, everyone would make a quick buck, and that would be that; it would probably have been cheaper than this protracted court battle. But IBM thinks longer term. Having put up this kind of fight, do you think anyone else will ever sue them over Linux IP? This fight will make Linux largely lawsuit-proof. [emphasis added]

      I couldn't agree with you more.

      Looking ahead a little bit to what might happen at the end of the SCO debacle... IBM has put together a legal bulldozer at no small expense to improve their business climate for the next 25 - 50 years when they could have just bought out Darl with pocket change. I'm guessing that IBM is prolly now looking around to see if this bulldozer can be used to make other improvements before it is dismantled. And when I try to look at the world through IBM's eyes, I see three targets that might be worth taking a run at:

      1. Software patents. IBM has been quietly putting a number of its software patents into a kind of protective escrow situation where they cannot be directly used to generate income. My guess is that IBM is no lover of current patent law and prolly sees the whole body of existing software patents as being rather like a toxic wasteland, and the patent process being a drain on their revenues. It might make sense to use the legaldozer to do some environmental clean up in this area. There are legislative avenues that could and prolly are being pursued, but since there is this shiny yellow 40,000 horsepower engine with a big old blade on the front all warmed up and ready to go, maybe attempting some change through the judicial system would be worthwhile.
      2. EULAs and the FUD that surrounds them. I don't believe IBM is using EULAs any more (if they ever did) and IBM prolly sees these as detrimental to the business climate they are attempting to nurture. Perhaps the IBM legaldozer could be used to remove these unsightly fences from the landscape and return the fenced off areas to the commons where Linux and IBM offerings flourish.
      3. The whole digital copyrights arena: I'd really like to see IBM take this on, but I doubt that will happen. The other two possibilities are directly within the scope of IBM's mission and core business practices. Cleaning up the digital rights garbage pit seems like much more of a stretch.

      In any event, SCO encouraged IBM to develop a powerful legal team. I think it would make a lot of business sense for IBM to look at targets worthy of this team's attention before taking it apart.

  14. One cloud on this silver lining by hellfire · · Score: 3, Insightful

    I just hope hope hope that the people involved in this legal scam of SCOs didn't dump their stock today.

    Many posters recently pointed out that they thought this was a stock pumping scam designed to get the stock up on the possibility of getting a large settlement from IBM. Now that the chances of that happening are slimmer and slimmer, what would you bet that before these announcements, important execs at SCO dumped their stock?

    I hope not. They should burn like the Enron execs should have burned.

    --

    "All great wisdom is contained in .signature files"

    1. Re:One cloud on this silver lining by wrook · · Score: 2, Informative

      They don't need to dump their stock at this point in time. They never paid for it in the first place, so there isn't any loss.

      Remember that the principles involved are mostly trading "stock options". They are granted the right to buy stock at a certain price, and can then sell it for whatever the market will bear. They don't, however, *have* to pay for it at all if the stock isn't "in the money" (i.e., selling for more than the option strike price).

      No, the time to dump the stock was at 14 or 15 dollars (and there was *plenty* of dumping going on). At $2, it's hang on until the inevitable crash.

  15. Compare Lyons from 2003 and 2006 by Dr.+Manhattan · · Score: 4, Informative
    "SCO Gets TKO'ed" - Forbes "The judges seem to be growing frustrated with SCO. For years, the company has gone around making outlandish claims--including many to Forbes--about IBM stealing huge amounts of code from Unix. Yet SCO has never shown any evidence to back up its claims."

    Compare that article to this one from when the whole SCO fiasco was getting started. Same author, you'll note - very different attitude. I love the hilarity of juxtaposing the titles of the two articles. Back then Lyons was calling Linux advocates and users "crunchies" - now he just calls them "fans" and says things like "companies... have built booming businesses around Linux."

    Not that he'll get called on the hypocrisy or anything.

    --
    PHEM - party like it's 1997-2003!
  16. Re:Three's the charm! by theonetruekeebler · · Score: 2, Interesting

    There will probably be a lot more than just one sentence handed out, when all this is over. Somebody might want to seize Darl's passport, because the SEC will be wanting a Very Meaningful Chat with him about the Lanham Act, not to mention running a pump-and-dump scheme from his own board room.

    --
    This is not my sandwich.
  17. Right after the MS-Novel deal .. coincidence ? by MrData · · Score: 4, Interesting
    Hmm lets see:

    • SCO gets bitch-slapped by two Judges for legal shenanigans.(As MS has been in virtually every leagal case it has been in, especially the Anti-Trust Case).
    • Just a couple of weeks earlier, MS and Novell join up to make a business deal that is so bad, even those involved with the deal can't explain it from a legal or business standpoint (which would be about the time that the SCO lawyers knew they were about to be taken to the wood shed ).


    Now those not in the know are thinking "so what the hell does SCO have to do with MS or Novell ?" or even worse
    "Those Slashdotters are just biased MS haters".

    And the answer to these thoughts my young padawan learner (or MBA) are the following facts:

    • Microsoft is an investor in Baystar Capital Managment who has invested at least 50 mil in SCO before the lawsuit (google for it if you don't believe me). Even worse, Lawrence R. Goldfarb, one of the investors in Baystart said MS promised to indemnify Baystar's investment from losses to to the suit.
    • SCO's lawer is David Boies, the same lawyer who defended MS in its Anti-Trust suit against the US (and who was also repeatedly repremanded for legal malfeasance).


    Which now leads us to the ultimate reason for why I believe these incidents are indeed related and not an accident ...
    a motive !!

    Both the SCO lawsuit and the MS-Novell agreement are designed to cast (at least to most tech-unsavy MBA types) a huge legal cloud over Linux specifically, and FOSS in general, of which Microsoft would be the only benefactor.

    Case Closed
  18. Well, sure! The MS/Novell is the new front. by mshiltonj · · Score: 2, Interesting

    Now that MS has its shiny new cross-licensing patent contract with Novell, it now has a new opening in its war on Linux. They are probably pulling back all resources from the SCO front, getting ready to exploit this new angle for a few years.

  19. Re:Right after the MS-Novel deal .. coincidence ? by zCyl · · Score: 2, Insightful
    Just a couple of weeks earlier, MS and Novell join up to make a business deal that is so bad, even those involved with the deal can't explain it from a legal or business standpoint

    They could explain it, it's just that neither side wants to. If you add up the money exchanged, the net result was that MS paid Novell some $300 million, which means MS was buying something. MS thought it was worth $300 million to create the speculation of legal trouble with Linux (as you said), but they don't benefit if they make a big deal out of the fact that they had to pay for Novell's cooperation, so they pretended to be buying protection from Novell. Novell thought $300 million was a nice chunk of cash, but they look sleezy if they admit that they were that easily bought out and cooperating with a FUD attack, so they took the money and then put a backspin on the story.
  20. Re:Right after the MS-Novel deal .. coincidence ? by DannyO152 · · Score: 2, Informative

    Um. Boies prosecuted Microsoft in the anti-trust trial. He didn't get reprimanded in that trial, but there are other trials where he ran afoul of ethics and was called on it.

  21. Re:So can someone answer something for me? by Anonymous Coward · · Score: 3, Informative

    There is NO "new material".

    What SCO tried to sneak in after the close of the discovery phase was "expert" witness reports that broadened the scope of the original claims, to which IBM objected and Judge Kimball ruled on (in IBM's favor) yesterday.

    What Judge Kimball correctly recognized was that trying to nail down SCO's claims was like trying to hit a moving target. The evidence that Judge Wells disallowed was ingeneously called "claims" by SCO in order to get past the fact (ie., evidence) discovery deadline.

    If SCO has any new real evidence, they will have to ask for a new trial, not an appeal. Judge Kimball is working his hardest (de novo review) to make sure that there can be no appeal.

    Even if SCO lasts that long.

  22. What makes you think he's being hypocritical? by Ungrounded+Lightning · · Score: 2, Insightful

    Not that he'll get called on the hypocrisy or anything.

    What makes you think he's being hypocritical?

    The previous article was written over three years ago. At the time WE may have known (or suspected) that SCO was talking through its hat, but The Suits, and the reporters that served them, had little such knowlege.

    SCO talked a good line, while Open Source was a newcomer to business, of questionable utility, promoted by people who looked like "a bunch of socialist hippies" who didn't respect "intellectual property" and the related legal framework. Sure the OSS people SAID there was no proprietary Unix IP in Linux - deliberately or accidentally. But SCO (then repuatble) said otherwise.

    Now we've had the SCO v. IBM trial (where it's clear that the issues are VERY important for business). That has given three plus years of education (so far) to those who are following it. (This is the JOB of news article authors such as Lions, who write these pieces to convey such information to executives, who need to get it RIGHT for their own multi-billion-dollar decision-making.) And so far SCO has shown itself to be blowing smoke, while IBM has shown Linux to be on solid IP ground.

    So of COURSE the article NOW will be much different from the article THEN.

    It would have been hypocracy if Lions had written the two articles back-to-back, with the same knowlege and mindset while writing both. But the Lions of today is a more educated man on this issue than the Lions of three plus years ago. So the contrast in the articles reflects his intelligence, integrity, and honesty - not hypocracy.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:What makes you think he's being hypocritical? by Dr.+Manhattan · · Score: 3, Insightful
      SCO talked a good line, while Open Source was a newcomer to business, of questionable utility, promoted by people who looked like "a bunch of socialist hippies" who didn't respect "intellectual property" and the related legal framework.

      Except that now Lyons specifically states that SCO never produced any evidence. And even then the "noisy fanatics" (his words) were producing evidence that SCO was flat wrong.

      Now he just sort of mumbles, "Gee, SCO was just flapping gums" without actually acknowledging that he was a prominent FUD disseminator himself, and they didn't - even then - back up their claims, to him or anyone else. I'd think at least a small apology would be in order.

      --
      PHEM - party like it's 1997-2003!