Bonum Certa Men Certa

An Issue of Mistrust: Bill Gates, BayStar, Acacia, SCO, and Linux

There is no trust in proxies

Disclaimer: I am not an SCO expert. For all I know, Shane is more familiar than me with SCO matters and, as a matter of fact, Linux.org has a decent timeline that I could truly learn from. I wasn't following the SCO case before 2005. If you decide to read this, please read it in full before dismissing this as "another conspiracy theory" (the quick way out and a shoot-the-messenger tactic).

We wish to explore the past in order to understand the BayStar-Acacia connection a little better. Acacia has links with Microsoft [1, 2, 3, 4, 5, 6, 7, 8, 9] and SCO is known to have had links with BayStar (and with Microsoft, by proxy). We wish to know if Acacia's case against Red Hat and Novell is indeed the next generation of lawsuits (among a few more, not just SCO) triggered by Microsoft (by proxy). There is already some good evidence of an Acacia-BayStar link, but what about Microsoft?

As a quick roundup, let us consider the fact that in 2004 Microsoft did ask BayStar if they would like to invest in SCO. SCO buybacks then began. BayStar's connection had some articles showing up as early as 2004, e.g. this one from CNET, with some further interpretation in this messaage.

Also worth quoting is this bit:

BayStar spokesman McGrath would not say who called BayStar managing partner Lawrence Goldfarb, but Goldfarb told BusinessWeek that it was not Microsoft Chairman Bill Gates or Chief Executive Steve Ballmer.


From another source:

McGrath said the suggestion came from unidentified "senior Microsoft executives" but not Bill Gates, Microsoft's chairman, or Steven A. Ballmer, its chief executive.


I would like to know if Gates was at least aware this transaction. He said he had never heard about BayStar. He actually said that last year, but there is no way to know the truth. We have competing stories, until the SCO story unfolds some more.

Here is what Bill Gates told Niall Kennedy:

Niall:

OK. Two questions.

1. Was Microsoft ever directly involved with the SCO Group in their lawsuit against IBM, either through BayStar Capital or others?

2. Why is Microsoft recently choosing to go after supposed patent violations with various operating system companies?

Bill:

I don't know BayStar.

Niall:

It's an investment company. One of their executives testified Microsoft invested $50 million to offset SCO's costs in the lawsuit.

Bill:

When?


This was actually said shortly after some very revealing evidence had been found, namely the sort of thing which is discussed in this huge thread. BayStar again hit the headlines in 2006, triggered by items like this and this about the Goldfarb declaration. The declaration is a sworn affidavit which was filed in the litigation. Anyone can actually get a copy from PACER directly. A month later, IBM subpoenaed Microsoft, Sun and HP over the SCO trial.

”His declaration mentions Microsoft specifically as being the company that sent him (Baystar) to invest in SCO.“If you look at Groklaw's Timeline page, find the IBM exhibits and look for Goldfarb if you need more details. His declaration mentions Microsoft specifically as being the company that sent him (Baystar) to invest in SCO. Of course Microsoft denies it. Also look for the Mike Anderer memo.

Where does that leave Mr. Gates? It is very hard to find (I've spent about an hour searching) a connection between Bill Gates himself and BayStar. My attempt is to prove that Gates' reply to Niall's question was untruthful (i.e. that he was just playing naive).

At risk of going tangentially here, the reason why I suspect Bill Gates may have lied, is past evidence, some of which is presented below in order to convince you, the reader, that Gates was caught lying many times before (even repeatedly).

The arrogance and rudeness of Bill Gates can be seen here, but deception and pathological lies are something that we have not discussed here before. Well, now we will.

Only last week, Bill Gates was pretty much caught lying, again.

"Two years from now, spam will be solved."

— Microsoft's (MSFT) Bill Gates, 2004, World Economic Forum in Switzerland

[...]

"I never said it would be solved," Gates said in an interview with USA TODAY last month. "I said it would be substantially reduced, and in fact it has been reduced a lot."


As you can see, first he contradicts an actual quote. What's more, he then lies. It is a known fact that SPAM levels have gone through the roof (rising by almost an order of magnitude) in the past few years.

Hundreds of millions of Windows PCs are already compromised and they are controlled by criminals who use them to send SPAM on occasions. Don't believe this? Here are the words from several security gurus. These happen to be words which the mainstream media suppresses in order not to incite public panic. The first one, which comes from Dan Geer, had him lose his job due to Microsoft's string-pulling (yes, again , and possibly again).



The biblical amounts of SPAM is not only a problem very severe, but it can also be attributed to proprietary software, which contains back door. Think about mistrust again and consider for example:



Let's consider other incidents where disinformation got disseminated.

Here is BIll Gates spreading Apple Mac FUD.

A few days later, I saw what Bill Gates had to say in a recent Newsweek interview about the Mac as compared to Vista.

"I mean, it's fascinating, maybe we shouldn't have showed so publicly the stuff we were doing, because we knew how long the new security base was going to take us to get done. Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine."

My reaction, like most knowledgeable people who read this, was open-mouthed astonishment. Now, either Bill is heavily drugged and delusional, which I don't believe, or he's just completely ignorant, which I also discount, or he knows exactly what he's saying and has an ulterior motive. That's my best guess.

Bill Gates knows that he's at best exaggerating and at worst completely lying through his teeth. So why's he doing it? Because he also knows that Apple's new ads are helping Macs to sell like hot cakes, and that security is a big reason why a lot of people are throwing up their hands in disgust at Windows and switching to Apple's computers.

Who reads Newsweek? Not computer pros, but Joe and Jane Computer-user, and Joe and Jane tend to believe what they read in the mainstream media when it comes to computers, especially when that nice, smart philanthropist Bill Gates is the one saying it. He's Mr Computer, after all, so he must be right!


More examples can be found here.

Denial! C'mon Billy Boy, you know things suck in the land of Vista. Just admit it and we'll be on our way.


Who could ever forget the deposition?

Boies: Do you remember that in January, 1996, a lot of OEMs were bundling non-Microsoft browsers?

Gates: I'm not sure.

Boies: What were the non-Microsoft browsers that you were concerned about in January of 1996?

Gates: What's the question? You're trying to get me to recall what other browsers I was thinking about when I wrote that sentence?

Boies: No, because you've told me that you don't know what you were thinking about when you wrote that sentence.

Gates: Right.

Boies: What I'm trying to do is get you to tell me what non-Microsoft browsers you were concerned about in January of 1996. If it had been only one, I probably would have used the name of it. Instead I seem to be using the term non-Microsoft browsers. My question is what non-Microsoft browsers were you concerned about in January of 1996?

Gates: I'm sure -- what's the question? Is it -- are you asking me about when I wrote this e-mail or what are you asking me about?

Boies: I'm asking you about January of 1996.

Gates: That month?

Boies: Yes, sir.

Gates: And what about it?

Boies: What non-Microsoft browsers were you concerned about in January of 1996?

Gates: I don't know what you mean "concerned."

Boies: What is it about the word "concerned" that you don't understand?

Gates: I'm not sure what you mean by it.


Audio and video here, for those who can spare a few hours.

Here is our local copy of the depositions of Bill Gates in the Microsoft anti-trust suit. We did our best to convert the original Windows Media files into an Open format, ogg. Your webmaster is responsible for the video transcoding, the audio-only files are contributed by a Groklaw member that requested to stay anonymous.


Here is he claimed to have been caught lying to the press and to the Congress.

Bill Gates has been busted in a big fat lie and we've got the statistics to prove it.


Here is a convenient slant on Vista pricing here in the UK.

If you watched the above video you will recall that bill gates said that british consumers will not be paying more than US customers, and that any price difference is merely due to differences in exchange rate


As you'll quickly find here, these claims are utter nonsense and Microsoft knows it.

As another example, consider controversial one. The Gates Foundation is a very sensitive issue and the media delivers a lot of disinformation that portrays the group's work and its founders as though they are saints. Despite media control, the LA Times was brave enough to put the Foundation to doubt. I wrote more about it here and here, among many other places. The bottom lies is that there is a lot of deception and dishonesty when it comes to the Gates Foundation, yet the media does not talk about it. It was only a fortnight ago that I saw the Gates Foundation investing heavily in yet another media company. Let's just call it what it is and explain why the Novell deal is still misunderstood by so many.

Moving on to the last example, recall Bill Gates' endless ranting and whining about the lack of engineers and poor engineering education in the United States. It is all just a big self-serving hoax, as explained by the following two articles (among more):

1. Is There a Shortage of U.S. Tech Workers?

Speaking before a Senate committee earlier this month, Gates said that America is facing a critical shortage of tech workers. He recommended boosting the number of H-1B visas to allow more foreign tech workers into the U.S.

[...]

"I think that has created an environment where the population of advanced skill workers has shrunk a lot in the U.S., because we just haven't created a fair system," he says. "Where if you go to other countries, you'll find national policy around broadband deployment, which creates a much more even playing field for people of all income levels to learn by and work by."

"We did it to ourselves," he says.


2. Study: There Is No Shortage of U.S. Engineers

...a new study from Duke University calls this argument bunk, stating that there is no shortage of engineers in the United States, and that offshoring is all about cost savings.


There is another very recent study that reaches the same conclusions, but the two examples above ought to suffice.

We've admittedly drifted off topic here, but perhaps some of the material above will prove valuable and be worth cross-referencing in the future. There is no trust.

Recent Techrights' Posts

Invitation to General Assembly After 1,200 EPO Workers Participated in the Demonstration 3 Days Ago
"the strike of 19 March was also very well followed."
SLAPP Censorship - Part 17 Out of 200: A Long Track Record of Online Abuse, Then Choosing a Low-Cost Law Firm to Muzzle People Who Have Illuminated This Abuse for Over a Decade
Censorship by targeting ISPs and webhosts isn't unprecedented
Symptom of Publishers Dying: They Move to Adopt Slop. Symptom of Software Companies Dying: They Move to Adopt Slop ('Vibe').
It'll always fail. It's hype. It's a bubble.
Under IBM, Red Hat Replaces Code With LLM Slop, Fedora is Slopware
Not even hiding it, those things are in plain sight
 
Links 21/03/2026: Metastablecoin Fragmentation and Crescent Moon
Links for the day
Gemini Links 21/03/2026: Historic Ada Docs; The Lurking LLM on the SmolNet
Links for the day
HSBC the Latest Failed Bank Using Slop as Excuse for Its Financial Failure
"HSBC is planning on cutting as many as 20,000 jobs in the near future as the company allies with AI revolution."
A/Prof Susan G Kleinmann, Enkelena Haxhija & Debian-private risk to MIT
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, March 20, 2026
IRC logs for Friday, March 20, 2026
Plagiarism in "Linux" Clothing (LLM Slop in linuxiac.com, LinuxTeck.com, and linuxsecurity.com)
The net effect of those slopfarms is very negative
Links 20/03/2026: Facebook Weaponised Politically, Openwashing by LF and NVIDIA, Encyclopedia Britannica Sues Microsoft Proxy for Plagiarism
Links for the day
The EPO's Local Staff Committee Munich (LSCMN) Explains to the Administrative Council (AC) How Bad Things Have Become at Europe's Second-Largest Institution, Biggest Patent Office, and Corruption/Cocaine Hub (Jobs Sold to Friends)
We'll say a bit more tomorrow
IBM's Red Hat Diversity: Only 3 Women (Out of 11 Leaders)
For comparison's sake, the FSF is about 50% female
Gemini Links 20/03/2026: Depictions of Culture and The Social Smolnet
Links for the day
SimilarWeb Was Never a Reliable Yardstick for Traffic
5RB may need some "house-cleaning"
Strangulation, suffocation, Jonathan Carter & Debian toxic culture confirmed
Reprinted with permission from Daniel Pocock
Reports or Hearsay Suggest Ogilvy Broke Up With IBM and Insiders Report Mass Layoffs in "Infrastructure" (Might Impact Red Hat Entrants)
hearsay in Social Control Media
Scheduled Server Maintenance Tomorrow Night
Starting 9PM
None of the Above (NotA) & Debian snubbing Sruthi Chandran
Reprinted with permission from Daniel Pocock
Links 20/03/2026: Cryptography Pioneers Win Turing Award and BMG Sues Anthropic for Copyright Infringement
Links for the day
Even Uganda Understands That Journalists Never Belong in Prison
"Ugandan authorities must respect the spirit of this ruling and abandon any measures that seek to jail Ugandans for the free flow of ideas."
Inaction Helps Your Enemies
Without freedom, there's nothing else left
Windows Down From 99% to ~50% in Republic of Seychelles (République des Seychelles)
Windows fell by a lot
"systemd is essentially a corporate IBM/Redhat project and corporations of course will comply"
Microsoft and IBM care about users' freedom like Cheeto Lump cares about the US Constitution
Confluent Insiders: IBM Laid Over Over 800 at Confluent, Not Just 800
For the record, the layoffs at Confluent won't be over. After the bluewashing there will be "IBM RAs" impacting Confluent folks, aside from PIPs
The Layoffs at IBM Carry on (Shades of Enron)
Is IBM another Enron?
"IBM boss Arvind Krishna... financial package valued at $38 million in calendar 2025 - equivalent to the average collective pay of 765 Big Blue workers."
continues to ruin the company to enrich himself while pretending he has a strategy
Gemini Links 20/03/2026: Digital Identity Bifurcation and a "Return to Gemini"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 19, 2026
IRC logs for Thursday, March 19, 2026
SLAPP Censorship - Part 16 Out of 200: Detailing the Actors and Explaining Techrights' Own Internet Relay Chat (IRC) Network
For those who have not followed our story
Microsoft "hiding behind bigger news of war, Epstein, other companies' layoffs"
They know what's coming, they just don't know when
Joerg Jaspert (Debian Account Manager/DAM) personally approved Raphael Hertzog's wife Sophie Brun
Reprinted with permission from Daniel Pocock
Letter 'A' prohibited by Code of Conduct extremism
Reprinted with permission from Daniel Pocock
Spoiler: Diversity & Debian means different things to different people
Reprinted with permission from Daniel Pocock
Solicitors Regulation Authority (SRA) Admits Failures and Criticism of Inaction on SLAPPs
many if not all solicitors and solicitor firms in the UK are in effect unregulated
Archiving or Preserving Pages About IBM Layoffs
Layoffs at IBM and the media does not talk about these
ABC, the American National Broadcaster, "Now Publishes Slop"
If the "big media" absorbs slop, it'll no longer be trusted and therefore not read/watched by the public
Links 19/03/2026: Culling Deepfakes of Artists’ Music and "Age Verification Isn’t the Answer"
Links for the day
Gemini Links 19/03/2026: "Aktion GPT-4" and "Kill All Descendants"
Links for the day
"AI" 15 Times in Short 'Article' From The Register MS. And The Register MS Got Paid to Publish It.
gets paid to do this
People Who Decided to Boycott Novell Over Its Microsoft Alliance Should Also Boycott Canonical
As an associate put it, "selling out further, due to Microsoft moles inside Canonical"
Links 19/03/2026: "AI Glasses" as Euphemism for Mass Surveillance and ABC (US) Has Begun Publishing Slop as 'News'
Links for the day
The European Patent Office, Europe's Second-Largest Institution, is on Strike Today
Lots more to come
What People Impacted by the Bluewashing Layoffs at IBM Confluent Say (While the Media Says Nothing at All, in Effect Burying the News)
Worse yet, the mainstream media spreads lies about it right now
IBM Has Turned Red Hat and Fedora Into Slop
This is IBM policy
IBM is Being Robbed, Companies and Jobs Are Destroyed
Companies taken over by IBM will be exploited and destroyed to keep a bubble inflated for a little while longer
In Confluent Layoffs, IBM Vapourises a Quarter of Its Workforce (IBM Buys Something That It Destroys Already)
In the past, such things were typically referred to as "media blackout"; now it's just "the norm".
IBM Effect at Confluent: Mass Layoffs and IBM's Business Conduct Guidelines (BCGs) Said to be Violated
For Confluent employees who survived the layoffs there will be "culture chock"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 18, 2026
IRC logs for Wednesday, March 18, 2026
Links 19/03/2026: LLM Fatigue (It Doesn't Work as Advertised), "Small Web Feeds"
Links for the day