Bonum Certa Men Certa

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

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:



Recent Techrights' Posts

The US Government is Now in the Business (Literally!) of Saving Microsoft and Intel
This means that President TACO/Cheeto now has greater financial incentive to also prop up Microsoft and Windows
Over at Tux Machines...
GNU/Linux news for the past day
 
Slopwatch: Linux Journal, WebProNews, LinuxSecurity, and the Serial Slopper
The bubble needs to burst, but even then the Web will be left with residues of these slopfarms
Links 23/08/2025: Science, War, and Important Win for the British Media Against SLAPPers Who Abuse Women
Links for the day
Gemini Links 23/08/2025: BaseLibre Numerical System and Back to Oldschool
Links for the day
"Deserved Victory" for "Women That Suffered"
"GNM defended its reporting as being both true and in the public interest and in a judgment on Friday"
Links 23/08/2025: onmicrosoft.com as Spam Cannon, The Cheeto-Intel Deal Is Official
Links for the day
Wired Complained About LLM Slop Only Days Before It Got Caught Doing That Itself
Never throw stones in a glass house
IBM "Value" Down 14.16% in a Month, Red Hat Layoffs Allegedly Discussed 12 Days Ago
"IBM is a dinosaur. Dinosaurs get extinct when the don't keep up."
We're Seeing More Countries Where Windows Isn't Even in Second Place Anymore (Third or Worse)
In a way, Microsoft can barely even hold onto second place anymore
Microsoft Workers on Canonical's Payroll
If you want something that's sort of like Ubuntu but is not controlled by Canonical, then look into Linux Mint, Debian, or LMDE
GNU/Linux Climbs to 4% in Sierra Leone
Sierra Leone isn't a very rich country (to say the least), but it's better off than some of its neighbours
The SLAPPS Run Out of Oxygen Because They're Abuse of Process
At the end of the day we plan to publish over 1,000 articles explaining what happened
The Register MS Gets Paid by the Employer of the Previous Editor in Chief to Promote the "AI" Ponzi Scheme, Which Does Considerable Damage to the Web and to Online Journalists
The Register MS can 'badmouth' slop all it wants; it gets paid to inflate this bubble. It's actively participating in it.
Soon It'll be Autumn, Time to Repair Things
Where they don't charge an arm and a leg
Doing Our Best to Cover Software Patents When the Mainstream Media Does Not
Even the FSF has its limits
Gemini Links 23/08/2025: August Questions and Network Solutions
Links for the day
IRC Proceedings: Friday, August 22, 2025
IRC logs for Friday, August 22, 2025
Microsoft Has Issues in Guyana
It's not just Guyana
About 25% of the "Linux" News/Results in Google News Today Are LLM Slop, Almost 20% From the Same Rogue Operators of Slopfarms
Google, which tries to market itself as an LLM giant, apparently fails to understand what's wrong with it
Harassing People on Holiday
There are "no-go areas"; but that assumes all laws firms have ethical standards
The Great, Undeniable Value of Paper Trail, Not Purely Digital Systems
Suppose you have nothing but bits on someone else's computer and "word of mouth"...
The Company Behind Ars Technica, Reddit and Wired Caught Publishing LLM Slop (It Also Admits It Now)
Condé Nast busted
Links 22/08/2025: Lagrange 1.18.8, Wired Magazine and Business Insider Caught Resorting to LLM Slop
Links for the day
This Saturday It's Gonna be 3.5 Years* Since Russia Invaded Ukraine. No Microsoft Protests Against Microsoft Having Provided Russia With Services.
Companies do not have consistent policies and enforcement of "corporate values" is somewhat of an egg salad
Slopwatch: Sites Gone Rogue, Google Promoting Lies, and DDoS Attacks by Plagiarism Giants
Charlatans and frauds engage in a war against artistic industries, mislabeling plagiarism as "AI"
Links 22/08/2025: Cisco Layoffs, LA Times Says "AI Hype is Fading Fast"
Links for the day
Gemini Links 22/08/2025: K for Kentucky and Caddy Versus LLM Slopbots
Links for the day
The "End Software Patents" Initiative of the FSF Explains "WHY [to] ABOLISH SOFTWARE PATENTS"
We hope to cover patent-related issues more and more as the big anniversary of the FSF approaches
Freenode Sniffing
The grown-ups left the building
The Only Thing Worse Than Misinformation is Misinformation Sold to Everyone as "Intelligence"
Misplaced trust is worse than none at all
The Register MS Now Openly Admits LLM Hype Does Damage, But It's Also Being Paid to Participate in the LLM Hype (With Paid 'Articles' and 'Webcasts' for Paying Advertisers)
The Register MS gets paid to do this
End of the Smartphone Era? No.
Maybe the media should focus on producing accurate, factual news
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 21, 2025
IRC logs for Thursday, August 21, 2025
Enshittification of Airports, Airlines, and Airplanes
If people are willing to tolerate standard declines and enshittification (nowadays sold as "pivot to AI" or "replaced by AI" or "AI layoffs") they will pay for it some other way
Latest Is Not Greatest: The Case of "Foldable" Tech
don't be shamed into abandoning old things just because the "fashion industry" of Apple and Samsung tells you to
Airlines and Their Tricks That Only Work in the 'Digital Age'
People sceptical of the direction technology has taken are not "Luddites"
Open Source Initiative (OSI), Which Became a Propaganda Front of Microsoft and "Hey Hi" (Hype, Misnomer), Wants You to Forget These Scandals
A lot of these issues won't be set aside until there's a resolution
The Culture of Overnight Coding
An industry-wise push-back is needed
Windows Down to New Lows in Guinea Bissau and Many Countries Around It
If Android is accounted for, Windows is down to about 10%
Gemini Links 21/08/2025: Modern Dating, Debian 13, and Apache
Links for the day
Microsoft Has Had About 10 Waves of Mass Layoffs So Far This Year (Not Two as Mainstream Media and Slopfarms Endlessly Claim)
Notice how the MSM (Mainstream Media) never mentions the debt of Microsoft. It is a conscious, deliberate decision.
Links 21/08/2025: Covid Cases on the Rise, "Social Media Trolls", Russia's Attacks Intensify
Links for the day
Gemini Links 21/08/2025: The Attraction of Back Alleys, Initramfs, and BSD ISPs
Links for the day
Links 21/08/2025: Stephanie Shirley Dies and "Groklaw Domain Hijacked?"
Links for the day
Search in 2025 (Age of DDoS Attacks Under the Guise of "AI" "Innovation")
One common concern when things go "live" is that any random bot out there can execute queries, pumping up RAM and CPU usage, as happened when we used MediaWiki and WordPress
Using Slop for Images Does Not Make Your Site Look Advanced or Witty, It Just Makes Your Whole Work Look Like Presumed Plagiarism
Lazy slobs and Serial Sloppers use the guise/excuse of "AI" to plagiarise and spam the Web
Financing of the "Hey Hi" (AI) Bubble by Those Who Profit From Planetary Destruction (Global Warming)
It's about personal gain, too
Richard Stallman Will Speak in Ethereum Cypherpunk Congress
it's good to see that the FSF pays considerable respect to it founder, who is moreover invited to speak at events
(At Least) Second Wave of Mass Layoffs in Microsoft This Month
This is not the first time this month that Microsoft has mass layoffs
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 20, 2025
IRC logs for Wednesday, August 20, 2025