Bonum Certa Men Certa

Linux Scrutiny Awakens an Interesting Science of Battling by Proxy

"...Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system. But Microsoft did not want to be seen as attacking IBM or Linux."

--Larry Goldfarb, Baystar, key investor in SCO



"[Microsoft's] Mr. Emerson and I discussed a variety of investment structures wherein Microsoft would 'backstop,' or guarantee in some way, BayStar's investment.... Microsoft assured me that it would in some way guarantee BayStar's investment in SCO."

--Larry Goldfarb, Baystar, key investor in SCO



"On the same day that CA blasted SCO, Open Source evangelist Eric Raymond revealed a leaked email from SCO's strategic consultant Mike Anderer to their management. The email details how, surprise surprise, Microsoft has arranged virtually all of SCO's financing, hiding behind intermediaries like Baystar Capital."

--Bruce Perens



"Microsoft hardly needs an SCO source license. Its license payment to SCO is simply a good-looking way to pass along a bribe..."

--Bruce Perens



THE Linux kernel is one of the most fascinating bits of software out there, perhaps owing to the vast number of contributors who are responsible for creating it. The Linux kernel has spread into many areas of our lives and it is used extensively in embedded devices where its presence goes largely unnoticed. Linux is also ubiquitous in servers and its growing success in that area often came at the expense of other established software companies.

With the growing attraction of Linux comes great fear among its rivals. Contributors and proponents of Linux are motivated by the fact that Linux is Free software. Ownership is warped such that the user truly owns the software, rather than essentially 'rents' it by paying for license to use. This makes Linux a very disruptive technology, but success can be attributed to other factors also.

SCO Makes an Appearance

The development methodology of Linux, its cost, and that question of ownership can also be used as an argument against it, especially by fierce opponents whose territory is being encroached upon by this mighty kernel. This has truly been the case ever since SCO chose to take a litigious route to combating Linux.

SCO asserted that Linux developers had stolen SCO's code. For several years a legal battle persisted which ended up with SCO filing for bankruptcy. After over 4 years, SCO is still unable to prove its claims, which it was never willing back in an upfront fashion.

“It blamed not only Linux but also a newly-earned public image problem for its demise back in September 2007.”In many ways, SCO's dragging of time contributed to greater fear, uncertainty and doubt. It had some companies hesitant about deployment of Linux in their environment. That, however, did not work in SCO's favour. There is this unfortunate dilemma to face when one launches a legal assault against its own customers. Many businesses used SCO and Linux at the same time, which led to backlash. SCO learned this the hard way. It blamed not only Linux but also a newly-earned public image problem for its demise back in September 2007. Its presently-departing CEO admitted this in an interview.

To many observers, SCO's battle against Linux seemed like a bad idea right from the very start, much like the recent investment of $100 million in SCO. This later turned out to be a takeover and we will get to that at the end of the article. It is widely agreed that SCO lost its focus on development due to litigation, which led to decrease in staff and talent. Alienation can be costly and quality of products is harmed accordingly.

The only return on a new investment in SCO might therefore be legal compensation, but launching a case based on poor or imaginary evidence is unlikely to bear fruit. Moreover, after so many years of continued failure to make much progress, the greatest of hopes is that this trial can carry on, yet the outcome seems rather predictable. To SCO, the desired outcome is probably unreachable, but this could be a question of duration, not vocation.



House mortgage



SCO's Past Funding

Speculations and accusations have been flying about since SCO's case against Linux had begun. Passionate advocates of Linux sought to discover an involvement by other parties who would benefit from SCO's actions and affairs. At one stage, Scott McNealy of Sun Microsystems made a statement that used SCO's assault as a way to promote Solaris at the expense of Linux. More conspicuous, however, was Microsoft's role.

“Among the payments that SCO received there were Sun's and Microsoft's payments -- for what was thought to be a right to use UNIX.”Several years back it was found that one of the several strategies for combating Linux was to concentrate on its perceived weaknesses. Examples which were found in Microsoft's Halloween Documents included copyrights and software patents. These documents were intended to discuss ways of defeating the growing threat of Linux -- a threat so great that it has been listed among the #1 risks in Microsoft's SEC filings for almost a decade.

SCO was a struggling software powerhouse even before resorting to lawsuits. The unfortunate reality can still be seen in the SCO UNIX Follies videos, which are available for viewing on YouTube. As the lawsuits went on for years, the high cost of lawyers took its toll and the company required more considerable investments from the outside. Shareholders went elsewhere, indicating that they had too little faith in the company's future.

Among the payments that SCO received there were Sun's and Microsoft's payments -- for what was thought to be a right to use UNIX. Only later it turned out that the owner of UNIX is actually Novell, so SCO has a debt now. Nevertheless, therein you have a situation where 3 companies which compete against Linux shared wealth in one way or another and this enabled the lawsuits to linger on and hurt the uptake of Linux.

There were other curious funds that SCO received throughout its lifetime, even when its main role was that of a plaintiff in court. These include an investment from BayStar, a venture capital firm. In a court declaration it emerged that Richard Emerson, a Microsoft employee, was involved in BayStar's investment in SCO. A BayStar representative later added: "Yes, Microsoft did introduce BayStar to SCO."

SCO Once Again to Attack Linux

The legal proceedings never ended and they are bound to resume in April. Nevertheless, until last week SCO was seen as a company that would be decommissioned by the end of the year. But then something happened.

Last week, a press release surfaced which surprised many pundits and analysts who had been covering this saga. It seemed to suggest that SCO would continue its legal battle against Linux, having received a very large cash infusion. The odds of seeing returns on these investments seem mere. That sentiment of misunderstanding is echoed almost everywhere you turn.

SCO maintains its image problem and it also carries that aforementioned heavy debt. It owes money to several parties including Novell and it could face followup lawsuits (comeback claiming damages) from victims of its own lawsuits, assuming money remains in its coffers. Why would anyone invest in SCO? More importantly, why now? That remains the key question in many people's minds.



Originally published in Datamation in 2008

Comments

Recent Techrights' Posts

Mass Layoffs at Microsoft, March 2026
When will the media properly investigate this?
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part IV - Escalating to Ministers, Explaining the Severity of These Matters
British Sovereignty at Stake
Garrett Announces LibreLocal Instance in Northampton, Massachusetts (USA)
his message was the only one last month
 
BBC Lied for Its Longtime Sponsor (Bribes for 15+ Years) Bill Epsteingate, in Effect Covering Up Sex Trafficking of Underage Girls
The state of the media is truly awful
Microsoft GitHub is Not Free Hosting and It Won't Last
Not for much longer [...] Microsoft is afraid to say that it is pulling the plug, but it seems inevitable
"The Lost Generation" Came Back, This Time Literally
Based on my limited experience with young people ("alphas"), they're lost
IBM is Not Likely to Survive Another Decade
Despite having already survived over a century [...] Last week we saw claims that some company would likely acquire IBM for its remaining assets
IBM Has Just Been Sued Again by Its Own Staff (This Time a Manager, Stephen P. Gutierrez)
IBM's behaviour towards its staff can prove costly
When a Company Says Its Layoffs are "Due to AI" Check the Debt (Typically the Real Reason for Mass Layoffs)
The mass layoffs at Microsoft continue, but Microsoft hides those in some of the same ways IBM does
Doing More With Less
primacy of concepts rather than bells and whistles
Andy and Helen in Cybershow on Divesting From the United States' Technology and Politics
It is no longer considered a taboo to say this and it's not "anti-American" because many Americans can relate to and agree with such criticism
Links 10/03/2026: "GEMA v. Suno Copyright Case" and "Valve Faces PRS Lawsuit Over Allegedly Unlicensed Steam Music"
Links for the day
Gemini Links 10/03/2026: Woods in UK, Slop Laziness, and "Small Technology and Small Economic"
Links for the day
Microsofters' SLAPP Censorship - Part 8 Out of 200: Gross Misuse of UKGDPR to Protect the Agenda of American Back Doors (Mass Surveillance)
Responding to bunk claims regarding UKGDPR and claims of 'analytics' in our sites
Links 10/03/2026: Oil Prices Rising, South Korean/US Military Assets Redirected
Links for the day
Links 10/03/2026: Rust Rewrites by Slop "20,171 Times Slower", "You MUST Review LLM-generated Code"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 09, 2026
IRC logs for Monday, March 09, 2026
Attacks on Techrights Make Techrights Stronger and Attract More Whistleblowers to Techrights
The harder they attack us, the more productive we become
The Register MS Has Just Taken Money From Google (Where the Former Chief Editor Now Works) for Femmewashing and Ponzi Scheme Promotion
now The Register MS not only promotes a Ponzi scheme but also bags money to pretend Google respects women
People at IBM Are Still Smart Enough to Understand What's Really Going on
"I would never refer someone to work at IBM that I liked! I hope all of you have reviewed IBM on Glassdoor."
European Patent Office (EPO) to "Eventually Eliminate the Tasks Performed by Formalities Officers"; EPO Run by People Without Experience in Patents
full paper
RMS is 73 Next Week
Richard Matthew Stallman (RMS) turns 73 exactly 7 days from now
Iran & FSFE: blackmailing women, from football to the French Government (CNIL)
Reprinted with permission from Daniel Pocock
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part III - Very Strong Legal Basis for an Appeal
The case is now being escalated to a Foreign Secretary and former Deputy Prime Minister
Police investigations, lawsuits & Debian leader election candidate shortage
Reprinted with permission from Daniel Pocock
Richard Stallman (RMS) Has Defeated Cancel Culture, a Mostly American Phenomenon
RMS is talking now
No Slop Found in RSS Feeds, Only in Google News
No slopfarm will survive for very long, certainly it'll go bust as soon as readers (if it had any) know what it is
Links 09/03/2026: Many Security Breaches and a Pandemic of Censorship
Links for the day
People Who Work or Worked at IBM Hate It
bluewashing is only the first step
Richard Stallman (RMS) Talks in 30 Minutes, Next Stop Bern (Last Stop)
We assume he'll travel back to Boston after that
IBM's Fedora as a Booster of Slop Disguised as Code or Computer Programs
Maybe we should also stop seeing a doctor and instead ask chatbots about symptoms?
Richard Stallman (RMS) Talk Five Hours From Now
there is growing recognition for what he really did for everybody
What the Solicitors Regulation Authority (SRA) and Action Fraud UK Have in Common
Don't let London become the world's "crime capital"
EPO Strike 10 Days From Now, Planning Assembly Tomorrow, Last Couple of Strikes Had High Participation Rates (1,500-1,600 Staff Went on Strike)
The next strike is in 10 days' time and then there will be another strike
Dr. Andy Farnell on How GAFAM, NVIDIA and Others Lie to People Via the Sponsored Media to Prop Up Lies Under the Guise of "AI"
Lots of key aspects are covered
Links 09/03/2026: GAFAM Outsourcing, "MAGA Political Meddling" in EU, Indonesia Bans Social Control Media for Children Under 16
Links for the day
Using Slop (and Slop in Articles) to Attack Copyleft 'on Budget'
This article is pure BS from an anti-GPL and anti-RMS 'activist'
Why The Register MS Sold Out to Microsoft: They're Losing Lots of Money, The Register MS is Bleeding to Death, Based on Its Own Financial Records
With over 6 million pounds in debt (nearly 10 million US dollars) we guess it's likely some other company will take over the site (if it deems it worthwhile)
Microsofters' SLAPP Censorship - Part 7 Out of 200: Like With the Serial Strangler From Microsoft, Misuse of UK-GDPR to Try to Hide Embarrassing Facts
They do and say really bad things, then allege it's a "privacy violation" to mention those things
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 08, 2026
IRC logs for Sunday, March 08, 2026
Gemini Links 09/03/2026: Exponentials and Tailscale
Links for the day
Sloppyleft
Article by Alexandre Oliva
Hard to Replace 'Human Touch'
The reason many people insist on using GNU
Richard Stallman Gives Talk in 20 Hours at Ostschweizer Fachhochschule Campus in Rapperswil-Jona
The talk is in English
The Slop Companies Gamble at Our Economy's Expense and They Know It's a Losing Bet (So It's a de Facto Robbery)
The crash of this bubble isn't just inevitable, it's already happening and receding sporadically because of false announcements about money that does not actually exist (to "buy time")
Suppressing Speech by Blackmail, the Iran Story
When Debian wanted to stage a seemingly legitimate election it needed to have more than one candidate running; so eventually the female partner of a geek rose to the challenge (had no coding skills at all, no technical history in Debian) and lost to the "incumbent German"
Too Focused on Buzzwords the Media is Paid to Saturate the Collective Mind With
Just because companies do really bad things in the digital realm does not imply "AI" or follow from "AI"
Discrimination and Prejudice Against Female Journalists
we can shame people who attack a reporter on the grounds of gender
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part II - Trying to Put People in Prison for Committing the Act of Journalism
This is abuse of process
Attack on Copyright and Copyleft by Code Conversion Is Nothing New, It Predates Slop (Code Produced by LLMs) by Several Decades
Even back in the 90s many people converted programs from one language to another. That could invalidate copyleft (and copyright), which already existed
Almost a Slopless Weekend for "Linux"
Let's hope slop will come to an end or sites will cease linking to slop
Insiders Explain Why IBM is Dying and the Inherent Culture Problem
There are many ways to shave this IBM cat
Links 08/03/2026: Microsoft Lost $400 Million on "Project Blackbird" and Half the States Sue Over Illegal Tariffs
Links for the day
Links 08/03/2026: Cisco Holes Again and "Blatant Problem With OpenAI That Endangers Kids"
Links for the day
Activism/Journalism in Our Blood
one must fight for one's principles
Gemini Protocol in Its Prime
What's particularly neat about Gemini Protocol is that it's fast and cheap
Microsofters' SLAPP Censorship - Part 6 Out of 200: Intentionally Misnaming Women, People Who Offered to Testify That They Too Had Been Subjected to Similar Abuse
Today it is International Women's Day
Even Fedora Leadership Cannot Figure Out the Microsoft Kill Switch/Back Door, 'Secure' Boot
It does not actually enhance security
Bruce Perens: Richard Stallman "Has Achieved His Goal"
Stallman's next talk is tomorrow
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 07, 2026
IRC logs for Saturday, March 07, 2026