Darrell Hudson

Clipping interesting articles & photos

SCO knew that there was not enough of its code in Linux But sued anyway

Groklaw points out that this means when SCO began its copyright infringement claims against IBM, Novell, AutoZone, and the world, it knew that it had no case.

If they deliberately buried that evidence, SCO’s victims would be able to ratchet up the damages.

Amplify’d from www.groklaw.net
A consultant hired by SCO in 2004 to compare UNIX and Linux, with the thought he could be used as an expert at trial, says that, after days and days, his comparison tool found “very little
correlation”. When he told that to SCO, it paid him and he never heard from SCO again.
The text of the footnote reads like this:

For the sake of full disclosure, I was hired by SCO for a month in 2004
as a consultant and potential testifying expert witness in this case.
The code analysis had already been under way for a while by other
consultants on the case. My CodeMatch tool for measuring source code
correlation was fairly new at that time. I was really excited and saw
this as an opportunity to prove my tools and “make my reputation in this
field.” The SCO attorneys gave me some code samples from SCO UNIX and
Linux to compare. CodeMatch chugged along for days before generating a
report showing very little correlation. The attorneys thanked me, paid
me my very generous retainer (that they had put into my contract), and I
never heard from them again.

Update: Do you remember Baystar? It invested in SCO briefly, because Microsoft would be happy if they did, as Larry Goldfarb testified was his motivation. Here’s the latest on Larry Goldfarb from the San Francisco Chronicle:

The Securities and Exchange Commission has charged Marin County hedge fund manager and philanthropist Lawrence “Larry” Goldfarb with secretly diverting $12 million in investor money to other uses including an investment in a San Francisco record company and charitable contributions.

Goldfarb runs Baystar Capital Management, a Larkspur firm that manages private investment funds including Baystar Capital II. The SEC alleges that since at least 2006, he and his firm have been misusing the proceeds from that fund’s highly profitable “side pocket” investments….

He and Baystar Capital Management settled the SEC charges without admitting or denying guilt. They agreed to pay about $14 million in disgorgement and interest to investors. Goldfarb also agreed to pay a $130,000 penalty and not associate with an investment advisor or broker for five years.

An update to the article says that he and his company “have entered into a deferred prosecution agreement with the U.S. Attorney” whereby Goldfarb admitted to one count of wire fraud and that $12 million in investor funds were transferred to two entities he owns which invested in — among other things — Marin real estate and OM Records. “The U.S. Attorney’s office in San Francisco will not charge him if he complies with the terms of the agreement, which include paying $12.1 million in restitution to BayStar investors and a three-year ban from the investment industry.”

Read more at www.groklaw.net



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