I’ve speculated a whole lot on exactly what genus of assclown the SCO CEO belongs to since the beginning of this whole SCO vs. IBM train wreck but it seems like the folks that move dollars around with bulldozers have finally pricked up their ears as well. Right now SCO’s stock price is taking a shit slide back into hell from whence it came. Someone posted that link in a comment over at Slashdot and I think it’s very telling about the general confidence people have in SCO’s ability to shoot itself in the foot over and over and over again.
The whole ballyhoo started when everyone started linking this news story where the head clown says very stupid things to the tune of:
McBride added that unless more companies start licensing SCO’s property, he may also sue Linus Torvalds, who is credited with inventing the Linux operating system, for patent infringement.
The “fwhoooo” sound that came out of me when I read that paragraph sort of hurt.
One of the readers over at PC Linux Online pointed out (by research into SEC filings and quarterly reports mind you) that Novell has a valid point about the intellectual property SCO claims to own. The comment says:
his is so cool! If you read Novell’s 1995 and 1996 annual and quarterly earnings reports filed with the SEC you see that Novell acquired UNIX System Laboratories, Inc. (USL) by issuing approximately 11 million shares of Novell common stock valued at $332 million in exchange for all of the outstanding stock of USL not previously owned by Novell and assumed liabilities of $9 million. Bear in mind they were already part owners of USL.
Then they sold Unixware to SCO for stock that only amounted to a 17 percent ownership in SCO common stock. The agreement also called for Novell to receive a revenue stream from SCO based on revenue performance of the purchased UnixWare product line. This revenue stream was not to exceed $84 million net value, and ended by the year 2002. That’s certainly not a $340 million dollar plus value. In addition, Novell was to continue to receive revenue from existing licenses for older versions of UNIX System source code.
All of that indeed looks like they were only swapping the product line for part ownership in SCO – while retaining the licensing rights to the UNIX IP. That last sentence at least indicates that the Novell executives certainly thought they were retaining permanent rights to at least some of the existing UNIX IP and made public representations to that fact with the SEC. That contradicts SCO’s claims today that all of the Novell and SCO executives who were involved at the time thought that SCO was acquiring all of the IP rights.
Even when Novell mentions selling BOTH it’s UNIX AND Unixware product lines, it specifically mentions the continuing revenues from UNIX licensing.
You’ve gotta love folks who do their homework. I’m pretty curious at this point if there is any legal plan on the part of SCO or if they’ve given up any hope of a real lawsuit in hopes of finding a magical pot of gold at the end of the rainbow. I hope Darl McBride finds himself out of a job in the near future especially as a representative of the company that causes stock value to plummet simply by running his mouth. I’m sure the countersuits have only begun. Microsoft still might play a role in this somehow by throwing more money into the mix but hopefully they’ll see past their blind hatred for all things not Microsoft and recognize a losing horse before dropping a load at the bet counter.