Page Two

By Steven Vaughan-Nichols  |  Posted 2004-04-19 Print this article Print

Blake Stowell, SCOs director of corporate communications, told me that this came as a complete surprise to SCO. Indeed, when Stowell and I spoke on Friday, SCO CEO Darl McBride was still flying back to SCOs headquarters from a business trip after hearing of the news. "Were still in an information-gathering mode ourselves, and were trying to find out where we stand," Stowell said.

Oh, the irony! SCO has spent months refusing to show anyone even samples of the "stolen" source code without nondisclosure agreements, and now theyre the ones who are in a position of not knowing exactly what it is that theyre being accused of doing.

As Linus Torvalds told me, "Yeah, my heart really goes out to them."

The Royal Bank of Canada, which ponied up the other $30 million in what was SCOs $50 million litigation war chest, hasnt asked for its money back yet. But at least one expert, albeit one with an open-source bias—OSDN IT stock analyst Melanie Hollands—opined in NewsForge that "it is possible that the (whole) PIPE deal is about to fall apart," adding, "I certainly think that Royal Bank of Canada may have cause to ask for a cash redemption Monday or soon."

If that happens, if SCO does have to pay back the cash these two companies loaned it, its game over.

SCO can withstand the slings and arrows of outraged open-source advocates. However, no company can withstand its creditors pulling its credit. Linux & Open Source Center Editor Steven J. Vaughan-Nichols has been using and writing about operating systems since the late 80s and thinks he may just have learned something about them along the way.

Check out eWEEK.coms Linux & Open Source Center at for the latest open-source news, reviews and analysis.

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Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

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