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To: Golden Eagle
SCO's claims are a bogus attempt to boost their stock price.

Are they claiming ANY application/program that has touched the UNIX tree will require a licensing fee to SCO?

I am not a UNIX history guru but I am wondering if this means that services like ftp, http, smtp, nntp, ip, tcp, udp and the like will require a licending fee. These protocols and services were developed on unix systems.
11 posted on 07/28/2003 5:58:54 PM PDT by jbstrick (Behold the Power of CHEESE!)
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To: jbstrick
Are they claiming ANY application/program that has touched the UNIX tree will require a licensing fee to SCO?

Not that I am currently aware of. This seems to mostly be about whatever code that was previously in Unix Sys V or IBM AIX that made it word for word (supposedly including typos) into Linux.

http://news.com.com/2010-1071_3-1019336.html

13 posted on 07/28/2003 6:09:26 PM PDT by Golden Eagle
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To: jbstrick
Are they claiming ANY application/program that has touched the UNIX tree will require a licensing fee to SCO?

It appears so. One of the technologies they name in their complaint against IBM is the IBM journaled file system (JFS). The JFS2 code base was originally developed for OS/2. IBM subsequently ported it to AIX. They also contributed it to linux.

SCO claims that by porting it to AIX, IBM made JFS2 a "derivative work of UNIX," and having done so, cannot contribute its own code to linux.

It's hard to see how this is not claiming a sort of "you made system calls to UNIX, so it's mine" right to limit subsequent distribution of code that is quite clearly not theirs. Oracle basically does the same thing; in fact on some level, an RDBMS is just a very fancy file system. They ported it to UNIX. Is it now SCO's? No matter what arm-waving might be employed to say "no, they don't mean that," it's hard to see what legal distinction could be made.

15 posted on 07/28/2003 6:24:41 PM PDT by Nick Danger (The views expressed may not actually be views)
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To: jbstrick
SCO's claims are a bogus attempt to boost their stock price.

SCO execs dump stock

By Patrick Gray, ZDNet Australia
29 July 2003

Senior SCO executives have been dumping their personal holdings in the company since June, US Securities and Exchange Commission (SEC) filings have revealed.

Since SCO launched its legal action against IBM, claiming that Big Blue had violated trade secret laws by sharing proprietary code with open source projects, its share price has sky-rocketed.

The price rise has been enough to convince senior executives to dump their personal shares in the company over the last two months.

SCO's chief financial officer, Robert Bench, has sold 14,000 shares in the company since June.

Bench isn't alone. The company's vice president of worldwide marketing, Jeff Hunsaker, has sold nearly US$230,000 of his stock, reducing the number of shares he holds by 42 percent from 35,494 to 20,494 since early June.

Although the reduction may seem severe, Hunsaker, and several others, still have plenty of stock options left, thanks to the grants they received three weeks after the legal action against IBM began. Hunsaker was handed 100,000 options to buy the company's stock for US$2.07. SCO shared are currently trading at US$13.07.

The company's president and CEO, Darl McBride, was given 200,000 of the US$2.07 options. McBride had some other options up his sleeve, with an SEC filing revealing he purchased over 7,000 shares for a meagre US$7.

Some commentators have suggested the company made the legal claims against IBM in order to boost its share price so it could use the stock to acquire Vultus, a web services company.

Vultus received seed money from a private equity management company, the Canopy group, which is a personal investment fund founded by former Novell boss Ray Noorda. Canopy was also a founding investor of Caldera Systems, which later became the SCO Group. In fact, SCO and Vultus were even located in the same building before the acquisition took place.

SCO stock has been flying around all over the place. SCO issued around 300,000 shares at par value $US0.001 earlier this month, which was used to acquire Vultus. The stock went to Vultus, Canopy, Vultus chief executive Michael Meservy and others.

Meservy received over 27,000 of the SCO shares for US$27. However in the grand scheme of things, that's nothing. In a "Registration Statement on Form S-3" filed with the SEC, the company reveals how many new shares it can issue whenever it wants.

"We have an authorised capital of 45,000,000 shares of Common Stock, par value $0.001 per share... Our board of directors has authority, without action or vote of the shareholders, to issue all or part of the authorised but unissued shares," the statement said. "Any such issuance will dilute the percentage ownership of shareholders and may dilute the book value of our common stock".

Considering the company has only 13.5 million shares floating around, it is conceivable that the issuance of 45 million shares at a tenth of a cent each may dilute the list price somewhat.

If that wasn't enough to make shareholders twitch, the registration statement contains other information that throws some light on SCO's position in regard to options.

"As of July 1, 2003, we have issued and outstanding options to purchase up to 4,011,975 shares of common stock with exercise prices ranging from US$0.66 to US$59.00 per share. The existence of such rights to acquire Common Stock at fixed prices may prove a hindrance to our future equity and debt financing and the exercise of such rights will dilute the percentage ownership interest of our stockholders and may dilute the value of their ownership," the statement said.

45 posted on 07/29/2003 6:24:36 AM PDT by Nick Danger (The views expressed may not actually be views)
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