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. The EPO's Race to the Bottom in Recruitment and Early Retirements Explained by an Insider

    The European Patent Office under Battistelli is failing to attract -- and certainly failing to retain -- talented examiners



  2. Wouter Pors and Other UPC Boosters Believe That Repeating the Lies Will Potentially Make Them Truths

    The lobbying campaign for UPC, or hopeful lies (sometimes mere rumours) disguised as "news", continues to rely on false perceptions that the UPC is just a matter of time and may actually materialise this year



  3. The Patent Trial and Appeal Board (PTAB) is Utilised in Fixing the US Patent System and the Patent Microcosm Loses Its Mind

    A roundup of PTAB news, ranging from attacks on the legitimacy of PTAB to progress which is made by PTAB, undoing decades of overpatenting



  4. The Patent Trial and Appeal Board (PTAB) and the Federal Circuit (CAFC) Take on Patents Pertaining to Business Methods

    Patents on tasks that can be performed using pen and paper (so-called 'business methods', just like algorithms) and oughtn't be patent-eligible may be the next casualty of the America Invents Act (AIA)



  5. Google's Stewardship of GNU/Linux (Android, Chromebooks and More) in Doubt After Company Resorts to Patent 'First Strikes'

    Google has just turned a little more evil, by essentially using patents as a weapon against the competition (by no means a defensive move)



  6. Links 24/2/2017: Ubuntu 17.04 Beta, OpenBSD Foundation Nets $573,000 in Donations

    Links for the day



  7. IAM, Greased up by the EPO, Continues Lobbying by Shaming Tactics for the UPC, Under the Guise of 'News'

    The shrill and well-paid writers of IAM are still at it, promoting the Unitary Patent (UPC) at every opportunity and every turn



  8. Patent Scope Gone Awry: European Vegetable Patents Office?

    In its misguided race to raise so-called 'production', the EPO lost sight of its original goals and now facilitates patent royalty payments/taxation for naturally-recurring items of nature



  9. Yes, There is Definitely Brain Drain (Experience Deficit) at the European Patent Office and Stakeholders Feel It

    The direction that the European Patent Office has taken under Battistelli undoes many decades (almost half a century) of reputation-building and progress and naturally this repels existing staff, not to mention hampers recruitment efforts



  10. The Sickness of the EPO – Part IV: Cruel Management That Deliberately Attacks the Sick and the Weak

    The dysphoric reality at the European Patent Office, which is becoming like a large cell (with bolted-down windows) where people are controlled by fear and scapegoats are selected to perpetuate this atmosphere of terror and maintain demand (or workload) for the Investigative Stasi



  11. Links 23/2/2017: Qt 5.9 Alpha, First SHA1 Collision

    Links for the day



  12. UPC Roundup: War on the Appeal Boards, British Motion Against the UPC, Fröhlinger Recalled, and Fake News About Spain

    Taking stock of some of the latest attempts to shove the Unitary Patent (UPC) down Europe's throat, courtesy of Team Battistelli and Team UPC



  13. The Sickness of the EPO – Part III: Invalidity and Suicides

    An explanation of what drives a lot of EPO veterans to depression and sometimes even suicide



  14. The Appeal Board (PTAB) and Federal Circuit (CAFC) Maintain Good Pace of Patent Elimination Where Scope Was Exceeded

    The Court of Appeals for the Federal Circuit (CAFC) continues to accept about 4 out of 5 decisions of the Patent Trial and Appeal Board (PTAB) and the US Supreme Court (SCOTUS) refuses to intervene



  15. Software Patents Are Ebbing Away, But the “Swamp” Fights Back and Hijacks the Word “Fix”

    The club of patent maximalists, or those who profit from excess prosecution and legal chaos, isn't liking what has happened in the United States and it wants everything reversed



  16. Report From Yesterday's Debate About the European Patent Office (EPO) at the Bavarian Landtag

    A report of the EPO debate which took place at the Bavarian Landtag yesterday (21/2/2017)



  17. Links 22/2/2017: Wine-Staging 2.2, Nautilus 3.24

    Links for the day



  18. French Politician Richard Yung Tells the Government About Abuses at the European Patent Office (EPO)

    The subject of EPO scandals has once again landed in French politics, just a couple of months since it last happened



  19. The Sickness of the EPO – Part II: Background Information and Insights

    With a privatised, in-house (sometimes outsourced and for-profit) force for surveillance, policing, justice, public relations and now medical assessment (mere vassals or marionettes of the management) the EPO serves to show that it has become indistinguishable from North Korea, where the Supreme Leader gets to control every single aspect (absolutely no separation of powers)



  20. EPO Cartoon/Caricature by KrewinkelKrijst

    A new rendition by Dutch cartoonist and illustrator KrewinkelKrijst



  21. Inverting Narratives: IAM 'Magazine' Paints Massive Patent Bully Microsoft (Preying on the Weak) as a Defender of the Powerless

    Selective coverage and deliberate misinterpretation of Microsoft's tactics (patent settlement under threat, disguised as "pre-installation of some of the US company’s software products") as seen in IAM almost every week these days



  22. The Sickness of the EPO – Part I: Motivation for New Series of Articles

    An introduction or prelude to a long series of upcoming posts, whose purpose is to show governance by coercion, pressure, retribution and tribalism rather than professional relationship between human beings at the European Patent Office (EPO)



  23. Insensitivity at the EPO’s Management – Part VII: EPO Hypocrisy on Cancer and Lack of Feedback to and From ECPC

    The European Cancer Patient Coalition (ECPC), which calls itself "the largest European cancer patients' umbrella organisation," fails to fulfill its duties, says a source of ours, and the EPO makes things even worse



  24. Links 21/2/2017: KDE Plasma 5.9.2 in Chakra GNU/Linux, pfSense 2.3.3

    Links for the day



  25. EPO Caricature: Battistelli's Wall

    Battistelli's solution to everything at the EPO is exclusion and barriers



  26. The 'New' Microsoft is Still Acting Like a Dangerous Cult in an Effort to Hijack and/or Undermine All Free/Open Source Software

    In an effort to combat any large deployment of non-Microsoft software, the company goes personal and attempts to overthrow even management that is not receptive to Microsoft's agenda



  27. PTAB Petitioned to Help Against Patent Troll InfoGation Corp., Which Goes After Linux/Android OEMs in China

    A new example of software patents against Free software, or trolls against companies that are distributing freedom-respecting software from a country where these patents are not even potent (they don't exist there)



  28. Links 20/2/2017: Linux 4.10, LineageOS Milestone

    Links for the day



  29. No, Doing Mathematical Operations on a Processor Does Not Make Algorithms Patent-Eligible

    Old and familiar tricks -- a method for tricking examiners into the idea that algorithms are actual machines -- are being peddled by Watchtroll again



  30. Paid-for UPC Proponent, IAM 'Magazine', Debunked on UPC Again

    The impact of the corrupted (by EPO money) media goes further than one might expect and even 'borrows' out-of-date news in order to promote the UPC


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