EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

07.21.09

IBM’s Latest Filing Regarding SCO Bankruptcy Mentions “Fraud”

Posted in Courtroom, Fraud, GNU/Linux, IBM, Microsoft, Novell, Patents, SCO, UNIX at 10:29 am by Dr. Roy Schestowitz

Summary: SCO bankruptcy gets a lot more interesting and serves as a reminder of patent trolls

THE MOST recent SCO scandals [1, 2, 3] showed that funds had arrived rather mysteriously and pushed to create a company whose domain names SCO staff had registered.

In the legal procedures, Novell and IBM take the stand and present documents that further complicate things for SCO, at one stage bringing “fraud” into it. Groklaw has a new article about it.

We’re in OMG territory now, y’all. Let’s continue:

14. Of course, the very involvement of Mr. Robbins in introducing Mr. McBride to Mr. Norris calls into question the good faith of the contemplated transaction. In its January 8, 2009, disclosure to the Court, the Debtors represented that Mr. Robbins — Mr. Norris’s “partner” — had “extensive experience in structured finance and private equity as co-founder and managing partner of Peninsula Advisors” and “served as Investment Director and lead negotiator with several leading financial institutions.”… And Mr. Robbins first introduced Mr. Norris to the Debtors, laying the foundation for the PSA…. But both Mr. McBride and Mr. Norris have testified that they believe Mr. Robbins to be involved in fraud. … Mr. Norris “had come to find out and pretty definitively that Robbins had been lying to everyone and misrepresenting essentially everything to everyone and had probably engaged in a whole variety of frauds.”

This proposed deal is dead in the water, methinks. It turns out, according to IBM’s filing, that there is no one actually committed to invest in this deal:

15. Financing for the PSA Transaction. Mr. Norris claimed that he had fairly firm plans to line up capital for the transaction proposed under the PSA, but he did not provide particulars…. He admitted, however, that he has no executed agreements from anyone to invest in this transaction, that there are no written commitments to back up either the Letter of Credit-Balance or the Letter of Credit-Sun and that he has no scheduled meetings over the next two weeks with any potential investors…. He claimed to have a variety of interested bidders, but did not clearly explain his solicitation process and, apparently on the advice of counsel, refused to identify any of the potential bidders

[...]

Now that the word “fraud” has entered this bankruptcy, we find ourselves in a new universe. Bankruptcies spin the other way, once there is fraud in the picture. And it’s about time, too, I know you are thinking. If I had to read the judge say one more time that SCO was doing its very best, I was in danger of becoming a cynic. Why doesn’t someone tell this judge what is *really* going on? That was what I was thinking about over the weekend. And now someone has.

In a separate context — one that relates to trust in Microsoft — Jason has just reiterated the fact that Microsoft gave money to SCO and it can also fund patent trolls like Acacia or Intellectual Ventures to attack Linux. Microsoft's patent troll recently extorted a Microsoft rival ($120 million in ‘protection money’) and this troll would never do this to Microsoft. The founder, Nathan Myhrvold, dislikes GNU/Linux, obviously.

Food for thought there, especially considering the proxy battles Microsoft has waged against Linux in the past; $86M to SCO, for one example.

Maybe it’s worth explictly telling those people that say things like: “Microsoft would be suicidal to sue” that that is simply not true. Microsoft could easily sell off one patent to any patent troll company to attack Linux with – then what? It’s not like Microsoft doesn’t spawn patent troll companies.

The SCO case is very relevant to us because there are parallels and future lessons at stake.

Other new Groklaw articles:

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 23/1/2017: Wine Releases, Microsoft Layoffs

    Links for the day



  2. 'Reform' at the EPO Means Destroying the Staff Union, Crushing Patent Examiners, and Imposing on Europe a System It Does Not Want (UPC)

    The chaotic transition at the EPO -- a transition from something which has been workable to something intolerable -- and the role of the Unitary Patent (UPC), which lurks in the shadows and threatens to harm the whole of Europe



  3. Shakeup Against Patent Parasites in the US and More Rumours/Speculations About USPTO Director Michelle Lee After Trump's Inauguration

    The US patent system is becoming ever more hostile towards patent trolls, owing in part to reforms introduced under Michelle Lee's tenure, but people are still not certain that she will maintain her job and continue to fix the system



  4. EPO Abuses Now Make the Netherlands Look Like a Facilitator of Human/Labour Rights Abuses

    Rather than crack down on human rights abuses, the Dutch government now sends out the signal that it's an island for those wish to violate human rights whilst enjoying immunity (EPO)



  5. Links 20/1/2017: Docker 1.13, Linux 4.4.44 LTS

    Links for the day



  6. “Federal Circuit Had Affirmed on Every Issue in 77.4% of the Patent Trial and Appeal Board Appeals it Had Seen” in 2016

    The Federal Circuit (CAFC) and Patent Trial and Appeal Board (PTAB) continue to squash a lot of patents on software, in contrast to that fake news from patent maximalists



  7. Kudelski Group Not Only Acts Like a Patent Troll But Also Run by Intellectual Ventures Person; Mobile Market in Dire State of Patent Armageddon

    The patent thicket which pervades everything that is used by billions of people, mobile technology in particular, can be traced back to a lot of non-practicing parasites (or patent trolls)



  8. Watchtroll and His Swamp Still Blame Google (Where Michelle Lee Came From) for Improving and Gradually Fixing Aspects of the US Patent System

    Shooting the messengers (even wrongly associating yours truly with Google) in an effort to undermine patent reform when it is so desperately needed due to serious injustices



  9. In an Age of Necessary Patent Reform and Permanent Uncertainty for Software Patents the Patent Microcosm Looks for Workarounds and Spin

    Commentary on the status quo in the Michelle Lee era and some examples of bias from the patent microcosm, as well as news regarding the NFL getting sued by the Kudelski Group



  10. Michelle Lee, USPTO Director, Should Recognise That the Patent Microcosm is Her Enemy Which Hates Her

    The latest outburst from the patent microcosm, which has a temper issue and notorious disdain for judges it does not agree with, is more of what we have come to expect



  11. Battistelli is an Autocrat Above the Law and It's OK, Holland's High Council Says

    Battistelli's autocratic tendencies will not be challenged by Dutch authorities, in spite of sheer condemnation from many groups all across Europe and the entire world



  12. Beware Fake News About the Unitary Patent (UPC)

    The UPC is dead, deadlocked, stuck, in a limbo and so on; those who claim otherwise are merely lobbying (in disguise of "analysis" or "news")



  13. Shame on MapR for Pursuing Software Patents While Pretending to Stand for Free/Open Source Software

    The patents gold rush sees another company joining the 'fun', albeit this company should campaign hard against software patents rather than pursue any



  14. Doomsday Scenario in the Back Mirror as Michelle Lee Keeps Her Job (and Much-Needed Patent Reform) at the USPTO

    The future of patent reform, i.e. tackling overpatenting and patent trolls, looks somewhat more promising with today's confirmation of Lee's 'extended tenure' at the Office



  15. Links 19/1/2017: PulseAudio 10.0, Linux 4.9 Longterm Kernel

    Links for the day



  16. Corporate (Wall Street) Media Agrees That Brexit Dooms the Unitary Patent (UPC)

    The nonstop lies or the fake news about the UPC starting "real soon now" don't quite pass a reality check or a basic assessment based on fundamental concepts, such as the UPC's facilitation of subordination (to Europe) in the United Kingdom



  17. Farce of an 'Independence' for the Boards of Appeal as Another Ally of Benoît Battistelli Enters as Parasite Inside the 'Overseer'/Host

    The latest cluster of lies from the President of the European Patent Office (EPO) and direct refutation of false claims of independence for the Boards of Appeal, where the former Vice-Presidents can flock, just like the Mini Minion (Minnoye) of Battistelli



  18. Links 18/1/2017: Red Hat's OpenShift 3.4, Mozilla's New Logo/Branding

    Links for the day



  19. Union-Busting Action by Team Battistelli Takes Heavy Toll, Techrights Will Continue to Expose EPO Injustices to the World

    The Staff Union of the European Patent Office, SUEPO, which faced unprecedented and probably illegal (based on local laws) attacks, is being weakened by the worst President ever, whose own management team seems to be collapsing along with the institution he is destroying in just a few years



  20. A Lot More Fake News About the UPC, Trying to Convince People That the UK is Ratifying (It's Not, It Cannot)

    Response to some of the latest misleading (self-serving) whispers about the fate of the Unified Patent Court (UPC), which is in a deadlock due to Brexit



  21. Rumours Suggest That EPO Management is Aware of Decline in Patent Quality and is Thus Actively Lying About it to the Media/Public

    Whenever Battistelli brags about patent quality he may be consciously and deliberately lying through his teeth if the latest rumours are correct



  22. Links 17/1/2017: GIMP Plans, New Raspberry Pi Product

    Links for the day



  23. Resumption of EPO Propaganda ('Meet the President') Officially Starts Tomorrow

    Yet another one of these foolish 'Meet the President' stunts, scheduled to take place tomorrow morning



  24. Caricature: Battistelli's New Year's Resolution (More EPO Lies)

    The latest cartoon being circulated within the European Patent Office (EPO)



  25. Donald Trump Gives New Hope to Patent Aggressors and Patent Trolls

    Pessimism about the prospects of patent progress or patent reform in an age of staunchly pro-business Conservatives and glorification of protectionism



  26. More Fake News About the Unified Patent Court (UPC) Based on Lobbying Tactics From Bristows UPC and the Preparatory Committee

    Unified Patent Court (UPC) lobbying has gotten so bad that it now infiltrates general media outlets, where people are asked to just blindly assume that the UPC is coming and is inevitable, even though it's clearly in a limbo and is unlikely to see the light of day



  27. EPO Totally Silent for a Month, But Deep Inside There Are Serious Cracks

    The situation at the EPO seems to be pretty grim, even at the top-level management, and the EPO has gone into permanent silence mode



  28. Links 16/1/2017: Linux 4.10 RC4, Linux Mint 18.1 'Serena' KDE Edition Beta

    Links for the day



  29. 'Financial Director' Publishes Fake News About the Unitary Patent (UPC)

    Response to some of the latest UPC propaganda, which strives to misinform Financial Directors so as to enrich the author and his firm



  30. Independent and Untainted Web Sites About Patents Are Still Few and Rare

    Commentary about news sources that we rely on, as well as the known pitfalls or the vested interests deeply ingrained in them


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts