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Trial Set To Determine What SCO Owes Novell
BobB-nw writes with word that this April will be the trial date for SCO's financial reckoning. Novell will discover via the courts how much (if anything) SCO is going to be compelled to pay in compensation for the lengthy trial over Unix code rights. The NetworkWorld piece also offers an overview of the case. "In September, The Wall Street Journal described the ruling against SCO as 'a boon to the open source software movement.' But experts say Unix is filled with technology that carries copyrights tied to many different companies and that it would be a nightmare to open source the Unix code collectively. Instead, Novell would have to pick and choose pieces to open-source, a process that could begin once the trial has ended."
SCO is going to pay Novell How?..
No, really. The Boies law firm representing SCO is being compensated by effectively taking part ownership in SCO. Having done that, should they not be liable for SCO's debts?
My contention for a while has been that, in taking compensation from SCO in terms of stock and shares, Boies has abdicated it's duty as an officer of the court. In a contingency compensation arrangement, the law firm gets paid when they win the case. But in this situation, they only get paid if SCO stock stays high, so their litigation goals are different than just winning.
I think they should be made to experience the full consequences of their agreement.
"As God is my witness, I thought turkeys could fly." A. Carlson
I want my two dollars!
One thing that annoys me in these posts is all these Johnny Come Lately people who have just started to hate SCO as a result of their actions against Linux. I've been actively hating SCO ever since I had to use their piece of crap OS in 1993 on a 286 PC. All the bugger had to do was keep the modem connection open so we could send email but would it stay up? Would it buggery. It was falling over all the time and in the end we had to go 3 months without email to the outside world, a contributory factor in the company going bust.
:)
So you think you have come to loathe SCO over these last few years? Let me tell you that real hatred takes 15 years to mature
An Eye for an Eye will make the whole world blind - Gandhi
There are many types of IP.
Trademark - to brand a product in a particular category
Copyright - particular text experssion
Patent - invention
Novell used to own the UNIX trademark. They passed it to the OpenGroup when the sold the UNIX business to Santa Cruz Operating Systems. OpenGroup certifies systems as meeting the UNIX standard.
SCO has 2 versions of UNIX, I believe one is UNIX95(tm) compliant, the other UNIX98(tm) compliant.
IBM AIX UNIX is UNIX2003(tm) compliant.
http://en.wikipedia.org/wiki/Single_UNIX_Specification
http://en.wikipedia.org/wiki/Intellectual_Property
Their last financial report (July '07, they apparently didn't file one for October '07) said that they had $15.79 million in total assets. This isn't taking into account any other debts. That was down $4 million from the previous quarter. Let's suppose that that drop repeated itself the next two quarters (since we're almost out of the current quarter). That means that SCO would have just under $8 million in total assets. So even if Novell took everything SCO had into possession and all other debtors got nothing, Novell wouldn't come close to recouping the money they were owed from Microsoft's $16.6 million Unix license payment. (To say nothing of Sun's $9.3 million license payment or any other payments.)
Another way to look at how much SCO is worth is to look at their market cap. Back in July, SCOX closed at $1.48 per share. Over 21.25 million shares, that's $31.45 million. Today, they're at $0.09 per share for a market cap of $1,912,500. Novell could easily buy up the remaining pieces of SCOX if they wanted to. Any way you slice it, SCO is toast and won't be able to pay Novell back even a fraction of what they owe them.
My sci-fi novel, Ghost Thief, is now available from Amazon.com.
The description here is incorrect.
SCO does not owe Novell any compensation for the trial or lawsuit.
They owe them something like 95% of the Unix license fees they collected from Sun and Microsoft, as well as some others.
there are 3 kinds of people:
* those who can count
* those who can't
I thought that was the idea of Sarbanes-Oxely, execs are not supposed to able to commit crimes and hide behind the company. Exec can be help personally liable.
Besides, scox paying novell is not the point. The point is to legally prove that Linux does not use proprietary UNIX technology, and to thereby stop the msft FUD.
The trial is significant because this trial has to be completed before the real trial can be held.
This isn't money which "SCO owes Novell". This is Novell's money which SCO has retained (in breach of contract). The distinction seems trivial but should be important. In theory, it should give Novell priority over all other creditors (including the lawyers, accountants, and landlords with whom SCO has been merrily spending money since entering Chapter 11). The word "disgorgement" looms large in the future of this case. A pair of loose analogies should make the distinction clear: if I rob a bank, and then use the stolen money to hire expensive lawyers in a futile attempt to escape justice, the bank is entitled to recover that money from the lawyers. But if instead I borrow money from a bank and then spend it all on expensive lawyers on my way out of business, the bank is out of luck. The current situation is more like the former analogy than the latter. In selling Sys V licenses to Microsoft and Sun, TSCOG was acting as Novell's agent: the money was Novell's all along.
Msft is sponsoring scox, and acacia to claim that proprietary technology was illegally put into linux. Of course, these are just more msft FUD PR stunt. But, sponsering companies like acacia and scox to abuse the US legal system, and file bogus lawsuits has a chilling effect on those who might want to use, or contribute to, linux. Msft is, very successfully IMO, putting a legal cloud over linux.
Errr... that's another way of saying 'there is no such thing as intellectual property'. Lawyers and other weasels who speak of 'intellectual property' are playing a classic quickness of the hand deceiveth the eye trick. Precisely, they're doing two things:
Whether property in land ought to be given the sorts of protections which Western society gives it is another question entirely. But that's beside the point. New ideas and expressions are not property, do not have the status of property, and do not have nearly the same degree of protection that property has. And it's in everyone's interest - that includes the 'content creators' - that it remains that way. Where would Walt Disney be now if all the classic fairy tales had been someone else's 'intellectual property'?
I'm old enough to remember when discussions on Slashdot were well informed.
First of all, the journalist is confusing Unix as a family with the UNIX IP that Novell owns. As a family, Unix is confusing because it contains contributions from many companies and organizations like components like RCU (IBM), filesystems (JFS, XFS, ZFS, etc), libraries (BSD, GNU,etc) and the like. Novell, however, knows exactly what it owns in terms of copyrights.
The main issue that needs to worked out is what amount Novell owed from the Microsoft and Sun licenses. When Novell sold SCO the Unix business (and not the IP), SCO agreed to pay Novell 100% of any UNIX licenses which Novell would remit 5% back to SCO for their trouble. SCO argued that the licenses to Microsoft and Sun were not UNIX licenses at all. The judge didn't buy their argument for although SCO may have called it differently, certainly the licenses they sold contained UNIX IP and thus Novell was entitled to a share. The reason why the judge did not summarily order SCO to pay Novell the full amount was there is a question of how much of the technology was Novell's UNIX and how much was SCO's IP (i.e. UnixWare, OpenServer). That question is being addressed by the court now. I highly doubt that SCO sold much of their IP to the likes of Sun whose Unix offering is much more advanced or Microsoft who isn't even in the Unix business.
Well, there's spam egg sausage and spam, that's not got much spam in it.