SCOX stock price plummets. Investors bail out.
The judge has ruled that SCO does not own the UNIX copyrights. This is pretty much the end for SCO, which has held on much longer than people thought it would. They held on that long because Microsoft gave them lots of money to finance their lawsuits, via a "license" purchase.
IBM has subpoenaed KPMG, SCO's former accounting firm, in order to try to get documentation on the transaction between Novell and SCO in 1995, when SCO supposedly bought all the copyrights for UnixWare.
IBM is dropping their patent counter claims because SCO wants to waste time litigating and IBM has apparently decided that, after doing the math, it's not worth the time or effort to win these counterclaims.
The deposition of SCO employee Erik W. Hughes, revealed that the LKP (Linux Kernel Personality) of UnixWare somehow used some code from the Linux kernel. This is infinitely ironic. The very company that is accusing IBM of stealing THEIR code is using GPLd code illegally in their own product! This is the ultimate in hypocrisy, especially from a corporation that decided all on its own that the GPL was "unconstitutional."
According to an email that was recently unsealed in SCO vs. IBM, an outside consultant hired by SCO in 2002 failed to find copyright violations in the Linux kernel code. This is not a surprise.
The judge just denied SCO the motion to change the IBM case again for the third time. Both companies now have a deadline to present all of their evidence. Did I mention I think SCO deserves to lose?
SCO just had the judge rule against IBM on one piece; IBM must produce lots of source code to SCO so that SCO can "prove" that they so far have not been able to; that IBM supposedly has maligned them by "stealing" their code and putting it into Linux.I fully expect (and hope) that this will get SCO nowhere but delaying the imminent; a full and embarrassing loss. SCO is no longer a technology company. They are a (purchased) litigation company. SCO deserves to lose big.
SCO's case has failed to really make much progress, and the industry isn't taking them seriously anymore, and neither are many of SCO's clients (or former clients as the case may be.) One internet provider decided to purchase a "SCOSource" license only to cause anger amongst many of their own clients. Many of their clients dumped them and moved on to more enlightned providers. SCO's suit against Chrysler is all but dead, Autozone has received a stay until IBM's suit is finished, and Red Hat is still suing SCO. SCO's stock value has been hovering below $5.00 for quite a while.SCO forum happened this week, and with it, there is usually a big jump in the stock's value. This time it went up only to go back down again Friday.
Today is the "deadline" for IBM to "comply" with SCO's extortion demand. It is unlikely that IBM will bow down to SCO group. There will likely be a long court battle, which most people predict that SCO will lose in the long run. SCO has already lost the loyalty of many of its dealers. It is unfortunate when a company turns to lawsuits as its main business model. It's unethical, dishonest, and SCO should be ashamed of what they have become. SCO used to have a good thing going, and they threw it away.
On or about March 6, 2003, The SCO Group filed a One Billion dollar lawsuit against IBM. According to The SCO Group: "IBM is affirmatively taking steps to destroy all value of Unix by improperly extracting and using the confidential and proprietary information it acquired from Unix and dumping that information into the open-source community." Although The SCO Group maintains that this lawsuit is not a direct attack on open source, they have failed to take into account the consequences this could hold for the entire Open Source community and the millions of people and businesses who have invested time, money, and resources to:
The Linux kernel team is very dedicated to writing original works, and is conscious of not including any copyrighted code, as that is the entire point of writing it in the first place.
In these paragraphs of their complaint, The SCO Group asserts that:I can no longer, with clear conscience, encourage the use of The SCO Group's products. I will, of course, continue to support existing installations, but will not recommend any new ones, and will encourage customers to migrate away from any SCO Group products when it is feasible. Only if it is not feasible (e.g. application is specially coded for just SCO) will I encourage continued use of an S.C.O. product.
It is a shame that is has to come to this, because I put a lot of effort to get certified with their technical certifications for both of their flagship products, and they have rendered themselves mostly irrelevant in the marketplace with their actions.
If you are using any SCO product and are interested in moving away from it, please give us a call. Dentar, Inc. is happy to recommend non-SCO, Linux-based products for almost any function.