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IBM Asks Court to Toss SCO's Entire Case 230

Lost+Found writes "After three and a half years of case proceedings, summary judgement motions have been submitted in the highly controversial SCO v. IBM case. SCOX shares took a loss of 18.75%, or $0.39, to close at $1.69. IBM shares rose 0.97%, a gain of $0.79, to close at $82.00. From the article: 'Both sides in SCO v. IBM have filed motions for summary judgment. To be precise, SCO has filed one for partial summary judgment and IBM has filed several motions for summary judgment, one for each of SCO's claims and two more for good measure on two of IBM's counterclaims. In other words, it is asking the court to throw out SCO's entire case, and to grant it judgment on two counterclaims without even going to trial on those two.' More motions for summary judgement from SCO against IBM counterclaims are currently being uncovered at Groklaw."
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IBM Asks Court to Toss SCO's Entire Case

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  • About time.... (Score:4, Insightful)

    by ronanbear ( 924575 ) on Tuesday September 26, 2006 @08:48AM (#16197867)
    That the judge dismissed this sorry excuse for a lawsuit and put it out of it's misery.

    This has been going on for far too long now and it's been clear to everyone for years now that even the broken patent/copyright system won't side with SCO.

    They've got nothing and SCO are a joke. Noone even takes this case seriously anymore.

  • by i.r.id10t ( 595143 ) on Tuesday September 26, 2006 @08:48AM (#16197869)
    Thats the beauty of having lawyers on staff. You pay them an annual salary, whether they are in court, doing research, etc. it doesn't matter. Fixed cost. Now SCO went out and got a few lawyers on retainer, so they will have a hefty bill, but I think IBM just has "regular" employees doing this on their side.
  • by Phil246 ( 803464 ) on Tuesday September 26, 2006 @08:48AM (#16197871)
    they could have easily settled long ago - thats not the point. they do not want to settle the case and leave doubts over linux, they want to crush it completely.
  • by lottameez ( 816335 ) on Tuesday September 26, 2006 @08:49AM (#16197881)
    ...if you want to make the $'s, go to law school. It doesn't matter if anything is produced, you still make money.
  • Re:About time.... (Score:5, Insightful)

    by jimicus ( 737525 ) on Tuesday September 26, 2006 @08:52AM (#16197901)
    IANAL, but AIUI the consensus of opinion is that the judge is playing everything by the book, dotting every last "i" and crossing every last "t", in order to ensure that neither party can come back and say "Not fair!" when judgement day comes.
  • by TheRaven64 ( 641858 ) on Tuesday September 26, 2006 @08:59AM (#16197959) Journal
    If you were IBM, and had long term strategies based around Linux, which would you do?

    Lose the case in back-door deal whereby I would end up paying SCO almost nothing, but provide them with a precedent that would allow them to round up all of my competitors and remove them from my competitive landscape.

    Why, what would you do?

  • by Anonymous Coward on Tuesday September 26, 2006 @09:04AM (#16198019)
    Uh, no. If you look at the filings on groklaw, you'll see that IBM is represented by one of those really expensive top shelf law firms. "The lawyer who represents themselves has a moron for a client" seems to apply to staff in lawsuits too.
  • by dreamchaser ( 49529 ) on Tuesday September 26, 2006 @09:07AM (#16198037) Homepage Journal
    First, the legal fees are pretty much a drop in the bucket for IBM. Second, and IANAL, they might be able to go after former SCO officers if there is evidence of illegality, but not individual private investors.
  • by MindStalker ( 22827 ) <mindstalker@[ ]il.com ['gma' in gap]> on Tuesday September 26, 2006 @09:12AM (#16198079) Journal
    IBM has long term strategies based upon the openness of Linux, not on being one only Linux. They are making their money off hardware and support, not direct software sales.
  • The perfect storm (Score:3, Insightful)

    by Anonymous Coward on Tuesday September 26, 2006 @09:12AM (#16198081)
    Judge K. grants most of IBM's wishes.
    Judge K. grants Novell a writ of replevin. That means that the funds that SCO should have turned over to Novell when it sold licenses to Microsoft and Sun go into a trust account. SCO only has ten million in the bank so it is instantly bankrupt.
    All the issues in all the trials are then amicably settled by the bankruptcy trustee.
    Holy smoking crater Batman, this puppy is never going anywhere near a jury.
    Well maybe some stuff will go before a jury. Darl may pay dearly for flapping his gums so loudly. There are the Lanham act issues. The SEC may also step in. Many people have said that the whole scheme involved a pump and dump on the stock market. There is certainly the odor of some kind of manipulation. In fact it has become a standing joke on the Yahoo SCOX message board (and now on InvestorsVillage as well). They call it the PaintBlaster with reference to the fact that the shares seem to get predictably 'painted up'.
  • by Anonymous Coward on Tuesday September 26, 2006 @09:13AM (#16198085)
    Thats the problem with limited liability corporations like we have in the US. Shareholders aren't responsible for the actions of the company, and aren't liable for anything but the money they had invested into the company, and when it's gone, that's it. Some would say that's the way that it should be, after all, most people don't even invest directly, the vast majority of investments come from mutual funds and other giant corporations managing people's money for them, and even when they do, the investors rarely get a real say in the direction of a company (sorry, voting is pointless when the only option on the ballot is "Yes") much less the day to day operations at the low levels.

    Now, maybe there's something in the law that would let you make a case against them if you could prove that they intentionally funded the company for the specific purpose of attacking IBM, since otherwise, you could have ridiculous things like bin Laden setting up companies with the specific purpose of killing Americans and getting away with it; but proving such a thing would be hard, especially in the post-Enron age of "Oops, did I just shred that?"
  • by dpbsmith ( 263124 ) on Tuesday September 26, 2006 @09:15AM (#16198107) Homepage
    All well and good, but the whole business certainly produced an impressive bulge in plenty of time for SCOX shareholders to line their pockets by selling stock that had been practically worthless the year before. [marketwatch.com]

    The legal soap opera is interesting, but the real question is whether anyone profited from that stock bulge... and if so who and how much... and whether anyone intends to go after them for securities fraud. If not, then the whole charade may have been immensely worthwhile for SCO's insiders. IBM wins a pyrrhic victory, SCO goes bankrupt, thanks to the concept of a corporation the officers have no personal liability, and if they owned SCO stock and managed to sell it in 2004 they could well be laughing all the way to the bank.
  • by Tim C ( 15259 ) on Tuesday September 26, 2006 @09:18AM (#16198143)
    Given that I'm IBM and have a team of lawyers who I would be paying regardless, and that SCO's next targets would most likely be the very companies that so thoughtfully provide me (for free!) with most of the software that I'm basing my hardware, support and professional services sales around, I'd crush them before they got any funny ideas about taking out the aforementioned companies and cutting my current strategy off at the knees.

    It's called "enlightened self interest"; the right thing is also the best thing for yourself, no matter how many others it may also help. Any advantage gained in paying off SCO now would likely be lost in the future, especially as it's extremely unlikely that SCO would be paid off so cheaply.
  • by Anonymous Coward on Tuesday September 26, 2006 @09:38AM (#16198355)
    IBM is using Cravath of Cravath, Swaine & Moore [cravath.com] as outside counsel on this case. Cravath is one of the most prestigous law firms in the country, typically hiring only from Yale, Harvard, Stanford, and Columbia. Vault.com ranks Cravath as the 2nd most prestigous law firm in NYC, behind Watchell. You can bet that Cravath is billing at least 500/hr per attorney on this case.
  • by mr_mischief ( 456295 ) on Tuesday September 26, 2006 @09:40AM (#16198379) Journal
    They could have easliy bought SCO before going to court. That's what they would have done before settling.

    IBM's confident that this case will help them in the long run, or they wouldn't be involved in the litigation at all.

    There was a bunch of speculation before the pretrial hearings even started that IBM might buy SCO, liquidate the corporation, and open-source all the software assets, and be done with the whole mess. Winning in court proves things about the GPL, the open development of software, the honesty of IBM as a corporation, and a few other things that a buyout or a settlement never could.
  • by MyNameIsEarl ( 917015 ) <assf2000NO@SPAMyahoo.com> on Tuesday September 26, 2006 @10:08AM (#16198731)
    I knew buying a Sega Genesis was worth it, I got full blood and gore. HA!
  • by rumblin'rabbit ( 711865 ) on Tuesday September 26, 2006 @10:45AM (#16199239) Journal
    Not a complete waste for IBM. They generated a lot of good public relations over this case with their favourite target customers: IT personnel.

    Perhaps not enough to make IBM to actually want these difficulties, but they're smart enough to recognize and exploit the benefits.

  • by LandruBek ( 792512 ) on Tuesday September 26, 2006 @10:59AM (#16199469)

    Sorry, but I'm getting tired of this argument. Let's remember basic economics.

    If you are IBM and you have, say, X lawyers as full-time staff and they cost you $Z a year, presumably they are not just sitting around playing checkers waiting for the next lawsuit; presumably you hired them full time because you have full time work for them to do -- work worth $Z to you. So you can't just divert these folks' energies to this SCO wankathon without giving up all the work they were going to do for you ordinarily. It's called 'opportunity cost' -- it essentially costs you $Z one way or another. So if you really do need that other work done, you'll have to hire other lawyers, probably for about $Z. Or you could leave your usual team on their usual tasks and hire other lawyers to sue SCO, and you'll probably spend about $Z on them if they are a lot like your first crew. One way or the other it is costing IBM. You know the saying, "There's no free lunch."

  • by msobkow ( 48369 ) on Tuesday September 26, 2006 @11:30AM (#16199961) Homepage Journal

    Everyone knew not to mess with IBM in the first place, the same as they know not to mess with Sun, Microsoft, HP, or anyone else with a patent portfolio and a serious legal budget.

    IBM continues to invest in the case not because it's cost effective, not because it's the "right" thing to do, but to ensure that the question of derivative APIs (not code) is settled in the courts once and for all. There have been cases in the past over smaller related issues, such as the macro names and syntax between Lotus 1-2-3 and Microsoft Excel, or IBM's implementation of a Win32 API layer for OS/2 Warp.

    But this is the first case where there are clearly defined and documented international, national, and government standards that define the APIs being fought over. Were SCO allowed to walk away with even the slightest victory, there would be a chance of software providers getting sued over any attempt to implement standardized APIs, regardless of whether the implementation is "obvious" to an experienced programmer or not.

  • Re:Legal Extortion (Score:4, Insightful)

    by OverlordQ ( 264228 ) on Tuesday September 26, 2006 @11:43AM (#16200157) Journal
    Put your astroturfing in your sig jackass.
  • "So he has a great track record. *rolleyes*"

    Actually, the Gov't won and MS found guilty. But then the administration changed, and John Ashcroft's DOJ was tasked with finding a way to let MS off the hook.

  • by 14CharUsername ( 972311 ) on Tuesday September 26, 2006 @12:49PM (#16201113)
    Remember when SCO sent letters to all of IBM's clients demanding $699 per copy of linux. Rember how we all laughed at that? Well IBM wasn't laughing. You can sue IBM and that's ok, all part of being a big corporation. But make a legal threat against IBM's customers? That's a whole other story. IBM wants to crush SCO and then desecrate their corpses now. You just don't mess with their customers.
  • by Weaselmancer ( 533834 ) on Tuesday September 26, 2006 @03:45PM (#16204171)

    I hear you, I just don't think that would happen. MS would rather blow that money on lawyers or burn it in huge steaming piles in the middle of Redmond rather than let anyone else get their hands on it.

    In a way, you know what this whole SCO/IBM thing reminds me of? The Korean War. No, really - stick with me on this.

    You have two huge superpowers who disliked each other immensely at the time, China and the US. But rather than fight each other directly, they decided to hash it out through puppet governments and a limited engagement in Korea. The north got backing and some support from China. The south got the same from the US. Nobody really committed anything earth-shaking to the conflict - too costly to go in full-tilt.

    Reminds me of the whole SCO thing immensely. SCO doesn't have enough backing to do their bit, so MS funds them through Baystar. And they go after Linux. And Linux suddenly gets enough backing to defend itself through IBM. Notice how IBM and MS don't fight each other directly? It all takes place in their own private Korea, SCO.

    The analogy isn't perfect, but it's close enough I think.

  • by steveg ( 55825 ) on Tuesday September 26, 2006 @06:39PM (#16207343)
    Boise *won* DOJ v. Microsoft, then lost it again when he "let" George Bush become president. That's just one loss, though, not two.

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