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."
The meter continues to run .... (Score:5, Interesting)
Re:The meter continues to run .... (Score:5, Insightful)
Re:The meter continues to run .... (Score:5, Informative)
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Ditto for SCO, and really for most companies in general. Even Microsoft hires outside attorneys for litigation; in fact, David Boies, who argued for Microsoft in the DOJ antitrust case is the lawyer who's spearheading SCO's case.
IIRC, Boies argued against Microsoft .... (Score:2, Interesting)
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Re:IIRC, Boies argued against Microsoft .... (Score:4, Insightful)
"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.
Re:The meter continues to run .... (Score:4, Interesting)
Just goes to prove that there is no such thing as good/evil/right/wrong as far litigation is concerned. It is only successfull vs unsuccessful.
Frankly, when SCO hired him my first thoughts were "they want their stock to go up". While his early courtroom showings (old case of IBM vs govt, etc) were good he has not won a significant case for a long time. At the same time every single one of his cases has generated a significant "positive" publicity for his client before losing. DOJ practically lost DOJ vs MSFT, Gore election case was also lost, etc. He may still win something for them, but the amount of stock rise and initial buzz around his participation in the case is clearly disproportional to his actual achievement.
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Derivative suit? (Score:2)
Re:The meter continues to run .... (Score:5, Informative)
Their "fixed" bill has come unfixed several times so far.
Twice they've had to throw another $5 million into the kitty for "expenses, experts, etc."
Its in their regulatory filings, along with "the future of the company is uncertain should we not prevail".
Re:The meter continues to run .... (Score:4, Funny)
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BTW: Novell's outside law firm also has quite a reputation and shortens their name for their internet domain and email addresses to "MoFo."
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Be precise (Score:2)
PR you couldn't buy (Score:3, Insightful)
Perhaps not enough to make IBM to actually want these difficulties, but they're smart enough to recognize and exploit the benefits.
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SCOX 3 year price chart [nasdaq.com]. Because one picture is worth a thousand words.
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Hours is often the least of it. Photocopying fees, phone calls, postage, faxes, data entry, filing (paper, not court), research -- these are the things that really tend to add up. A large law firm may bill their senior associates in 10-minute increments, but a single ten-minute phone call can cascade into dozens of documents, occupying paralegals and secretaries for hours. So that one phone call may have cost you ten minutes of $1000/hour lawyer time, but the anc
Don't get too excited. (Score:5, Informative)
Motions for summary judgement are just part of the process; both sides file 'em, even when it's ridiculous (as SCO's are), usually the judge ignores them both, and life moves on.
Re:Don't get too excited. (Score:5, Funny)
"guy shoves his fist in through his enemy's sternum and rips out his spine"
The only guy who shoved his hand through your sternum was Kano,
SubZero ripped off your head with the spine attached. -I think this is what you meant.
I agree SCO wishes it could have a piece of IBM(ridiculous) I hope a public caning is given to the execs of SCO for even stepping up to IBM. how dare they
D,F,F,F,HP!
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And Kano. . . ripping hearts out? How terribly violent! No, no, I'm sure that as I recall he only punched through their sternum and then held up his closed fist in victory, that's all. Whew, thank god they didn't let the sort of viole
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Re:Don't get too excited. (Score:4, Funny)
It is to this that I attribute my having grown into such a fine upstanding citizen. :)
Our whole thread is off-topic, but what the hell. :)
Re:Don't get too excited. (Score:5, Informative)
But, IBM has already filed for summary judgement once and, at that time, Hon. Dale Kimball hinted that IBM might consider filing such a motion later in the discovery phase. So that's what IBM's legal team is doing here... what they've already been asked to do. Chances are, Kimball is going to grant the summary judgement on this one.
(IANAL)
Summary Judgement (Score:3, Interesting)
They could do it by scheduling a news conference, and taking that One US Dollar and placing it into a pretty frame, and the SCO attorneys would drool all over it and believe that they actually won something.
Jeeze.. just stick a fork in them - they are done.
Re:Summary Judgement (Score:5, Insightful)
Re:Summary Judgement (Score:5, Insightful)
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.
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Re:Summary Judgement (Score:5, Informative)
In this case also, as much effort as IBM has placed behind Linux, they need to have it seen as free of any legal issues to be able to market it effectively. I suppose SCOX was assuming IBM would rather give them a quick payoff to 'go away' then slug it out in court.
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Also, winning in court shows that IBM kicks SCO's a**.
Or, at the least, doesn't reward SCO. Being bought by IBM would be a great ending for SCO, whereas losing in court, filing for bankruptcy and then watching people carry your computer equipment out to pay the debt-holders is... less so.
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Or, IBM can push the case to the bitter end and prove in court that the claims are groundless, and end it once and for all.
If you were IBM, and had long term strategies based arou
Re:Summary Judgement (Score:4, Insightful)
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?
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Re:Summary Judgement (Score:5, Insightful)
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.
Be wary! (Score:2)
I wouldn't settle for one dollar (plus expenses) when I could get away for free. And the chances are awefully good! It's not like it cuts into IBMs daytime biz to be present in court, if SCO wants to keep the cost running, more power to them. Hand 'em enough rope!
Re:Summary Judgement (Score:5, Informative)
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Or even well founded ones. Knowing that you are facing a nuclear power in a litigation situation makes you less likely to sue, period.
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In other words, just because the muscle we are seeing is being used for a good cause this time doesn't mean that we should be complacent about how it might be used in the future. Just because your beliefs about software licensing happen to coincide with IBM
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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
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lol (Score:2)
Morons....
The perfect Iceing (Score:4, Interesting)
Wouldn't that be the perfect iceing on SCO's cake!
About time.... (Score:4, Insightful)
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.
Re:About time.... (Score:5, Insightful)
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There are still 2 or 3 cases to go (at least the Novell and Red Hat ones) that are waiting on this one. It'll be a while before SCO 100% dies.
And the moral of the story is... (Score:5, Insightful)
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Because you're a whore?
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Re:And the moral of the story is... (Score:5, Funny)
Re:And the moral of the story is... (Score:4, Funny)
Legal Extortion (Score:3, Interesting)
One can only hope that this case will prevent "Legal Extorion" from occuring in the future; but alas, that is just wishful thinking... IBM is a big rich company. If SCO were to come after a small fish like you or I, would we have the money to defend ourselves the way IBM did? I seriously doubt it. More than likely, had SCO sued me directly, I would have run out of financial resources trying to defend myself, and would have capitulated. SCO probably would have gotten summary judgement against me and precedents in case law would have been set. The sad thing is, had SCO has smarter lawyers, they wouldn't have tried to take on a big fish like IBM, but would have sued a very small company with few finanical resources to defend themselves. Once a precedent has been set, they could have laughed all the way to the bank. Believe it or not, the legal system is full of cases which many would consider "Legal Extortion" (ie. Pay up now, or face an expensive and lenghty lawsuit). One industry I can think of where many hungry lawyers prey upon is the California Real Estate market. Which brings me back to a headline I once saw on a magazine for lawyers in California. The headline read: "Mold is GOLD!", meaning that the common practice of bringing in an environmentalist to find 'mold' in a home and then turning around and suing the former homeowner for not disclosing the potentially hazardous condition that is causing the new occupants all sorts of numerous ailments, is worth big bucks to many california lawyers.
Here's hoping that this case will help the little guy... but I'm not gonna hold by breath!
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Re:Legal Extortion (Score:4, Insightful)
And the people said... (Score:3, Informative)
How far can IBM go? (Score:4, Interesting)
Or can it pull an SCO trick itself? I mean just claim that the original investors were just legal extortionists and file a case against them and bleed them and give them a taste of their own medecine?
Re:How far can IBM go? (Score:4, Insightful)
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Ownership of Unix? (Score:2)
The brand name UNIX is owned by The Open Group (Score:3, Informative)
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I think they've certainly been hunting for evidence for that sort of thing, see e.g. this Groklaw article from February [groklaw.net]. However, I don't follow everything closely enough, I don't know if anything came of that later.
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Maybe they could make AIX open source? That'd be nice.
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When we have Linux and Solaris already, do we really need it? What's so great about AIX?
Re:How far can IBM go? (Score:4, Informative)
This is called Piercing the corporate veil [wikipedia.org]. It is not easy, but not impossible either. If IBM was able to show that the major shareholders were using SCO as a sacrificial pawn to go after IBM, but prevent IBM from being able to collect damages, then IBM might be able to go after those shareholders directly.
I don't think MSFT is a SCOX shareholder. I think MSFT "funded" SCOX by making some lame licensing deals. I wonder how creative IBM's lawyers are willing to be.
Re: Proof is not important. (Score:2)
Someone can set up a company. Let us call it "SCO_damaged_me.com" This company will contact IBM shareholders who believe the actions of SCO have hurt their stock. They will buy the right to sue SCO to recover
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The perfect storm (Score:3, Insightful)
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'.
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Theory slain by facts, film at eleven. (Score:2)
You haven't been able to short SCOX for years. There simply haven't been any shares available to borrow for the past three years or so, and the price is well bellow $5/share, so your explanat
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it was a "lol theory" and I tried to make that clear; along with the fact that I'm not a stock market expert (or even a neophyte... I'm somewhere below that)
That being said: Why haven't you been able to short SCOX for years? And I thought that if you were shorting the stock, you weren't actually trying to sell your stock, so if everyone who could tried to short the stock, the market shouldn't react as if they all were trying to sell. But shorting a stock is a bit arcane to me, so I don't think that absolut
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Basically when you sell short, you are borrowing some shares from someone else, selling them right away, and promising to pay them back later on.
If your broker can't find someone with a long position to "borrow" the shares from, they can't let you sell short.
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Who profited from the 2004 spike? (Score:5, Insightful)
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.
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Bun-fight! (Score:2)
Re:Bun-fight! (Score:5, Funny)
Never spent any time around lawyers, have you?
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I nominate this phrase as the best description of SCO's legal action right from the start.
Highly controversial? (Score:2)
Controversial? I thought everyone agreed that SCO didn't have a case.
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Controversial? I thought everyone agreed that SCO didn't have a case.
Exactly. I believe the only controversy has been whether this lawsuit should exist in the first place.
Reform (Score:3, Interesting)
Re:Reform (Score:5, Funny)
Let me link to an old Slashdot comment... (Score:3, Informative)
Couldn't explain it any better.
Don't forget about Microsoft (Score:2)
Disovery is closed and time for IBM's SJ Smackdown. I'm betting they granted most, if not all their PSJ's. Time to stick a fork in this pathetic case.
Let's not forget Microsoft's involvement in this swarmy tale. They got caught in bed with SCO, sort of like being caught with a hooker when the media shows up. I'm guessing no one at SCO is going to volunteer for federal ass-pounding prison if there's a way to drag some MSFT execs into the case with them. It'll be interesting to see if that's what IBM's
Well, that's the real trick (Score:3, Interesting)
I'm guessing no one at SCO is going to volunteer for federal ass-pounding prison if there's a way to drag some MSFT execs into the case with them.
I agree with your whole post 100%, but this is the tricky part.
Let's say all goes as IBM has planned and SCO gets their collective asses handed to them in court. And the SEC goes after them for insider trading once the whole case is settled and made public.
What next?
Exactly how do you draw a line between MS and the greybar hotel? Yeah, MS did finance t
The Korean War, part 2 (Score:3, Insightful)
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 govern
Just Imagine.. (Score:2)
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Not having visited other planets, I can't really compare how ours compares in craziness to others, but I would venture a guess that this would be a pretty accurate depiction of our planet.
Microsoft got their money's worth... (Score:2)
If Microsoft funded SCO for any or all of the SCO v. IBM case, they got their money's worth.
Value of SCO (Score:3, Informative)
58 percent of the company is held by major owners and mutual funds.
Ownership:
DERBY, STEVEN About 10%
LAMAR, STEVEN M About 10%
BAYSTAR CAPITAL II LP about 8%
Glenhill Advisors LLC 10.19%
The firm is worth between 20 and 40 Million USD and has 14 million in cash
but they go through 9 Million a Year.
- mph
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