Changes in the New SCO SEC Filing (Groklaw) [LWN.net]

The SCO Group has a new regulatory filing available now. Groklaw has posted a listing of differences between this filing and previous versions that is definitely worth a look. For example, "In addition to SCOx, we implemented our first SCOsource initiative in January 2003 to review and enforce our intellectual property rights in the UNIX operating system. became "In addition to SCOx, we implemented our first SCOsource initiative in January 2003 to review and establish our intellectual property rights in the UNIX operating system." (emphasis added). As a whole, the changes do not indicate that everything is going SCO's way.

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Putting it far too mildly

Posted Jan 19, 2004 19:26 UTC (Mon) by AnswerGuy (guest, #1256) [Link] (2 responses)

As a whole, the changes do not indicate that everything is going SCO's way.

That's an understatement!

Almost all of the changes add long passages of "CYA" (cover your ... anterior) text that should have been listed under the "Risks" category of this filing.

They basically acknowlege that they have no business prospects other than this lawsuit and possible other litigation against Linux vendors and users. They note diminishing licensing for their UNIX offerings.

Despite this they still omit relevant and vital risks. For example, they make no mention of the impending risk of legal action by Novell, nor of audits demanded by Novell (for the 95% of licensing revenues that are supposed to be paid back to Novell for UNIX --- which apparently were not paid in the Microsoft and Sun licensing scams)

It's easy to see how they overlooked making these payments. It's obvious to all that these were not truly licensing arrangements, but rather investments by hostile parties to supply SCOG with a litigation warchest. However, they seem of have shot themselves in the foot, forgetting that a ploy to disguise this as "licensing" would divert most of the proceeds to Novell pursuant to their agreements.

So it would be reasonable to say that almost nothing is going SCOG's way. However, their insiders are continuing to sell shares and apparently have tallied up at least $320 million in ill-gotten gains from this barratry.

Tell us more!

Posted Jan 19, 2004 20:22 UTC (Mon) by jre (guest, #2807) [Link] (1 responses)

Many alert observers, including LWN, have done a fine job reporting on the SCO stock shenanigans. But it's been a while since we've gotten an update. With the stock in the mid $15s and sliding as of this writing, and with some upcoming legal news likely to be grim, it wouldn't surprise me if a few more rattus lindonicus were trying to slink off the ship. Any news?

Tell us more!

Posted Jan 19, 2004 20:37 UTC (Mon) by corbet (editor, #1) [Link]

The stream of inside sales has slowed to a relative trickle in recent times. I guess they've figured out that it looks bad.

In total, there's been some $2M of insider sales, spread across the better part of a dozen people. Some money has been made, but, if the SCO thing really is a stock scam, the real sting has not yet happened.