Gartner: SCO's Legal Fees Could Jeopardize Its Software Business
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Description: Recent moves compromise SCO mission as software firm; place law firm in position of growing power to set agenda for SCO compensation. Summary with forum comments. [LWN: Linux Weekly News]
(November 20, 2003)
Gartner: SCO's Legal Fees Could Jeopardize Its Software Business [LWN.net] Gartner: SCO's Legal Fees Could Jeopardize Its Software Business [Posted November 20, 2003 by corbet] The latest share issue will dilute shareholders' investments about 3.5 percent. It comes on top of a previously announced arrangement giving Boies, Schiller & Flexner a 20-percent share in SCO if the company were sold. SCO also received an investment of $50 million from BayStar Capital in return for 17.5 percent of outstanding shares. We believe that these moves compromise SCO's mission as a software company. Increasingly, the legal and financial aspects of the intellectual property infringement cases will absorb the company's attention, and a law firm will be in an increasingly powerful position to set the overall agenda for its compensation. Therefore, SCO will likely pursue claims against Linux users quickly.
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