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Technology Stocks : SCO Group (SCOX)

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From: Scott C. Lemon4/13/2007 1:21:18 AM
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Hello All,

I found this most recent filing by SCOX an amazing document. It is really worth the read, as is contains the depositions of a range of Novell executives at the time of the SCO purchase of the UNIX business from Novell.

sco.com

10. Robert Frankenberg was the President and CEO of Novell at the time of the APA.

(Ex. 7 at 7.) On February 10, 2007, Mr. Frankenberg testified:
Q. Was your initial intent in the transaction that Novell would
transfer copyrights to UNIX and UnixWare technology to Santa
Cruz?
A. Yes.
Q. Was that your intent at the time when the APA was signed?
A. Yes.
Q. Was it your intent when that transaction closed?
A. Yes.
Q. And did that remain your intent, as you view it, at all relevant times?
A. Yes.
Q. So that never changed?
A. No.

(Id. at 135.) Mr. Frankenberg never contradicted that testimony.
11. Indeed, Mr. Frankenberg understood that the APA’s sale of all rights and ownership included the copyrights:
Q. Is it your understanding that that sale of all rights and
ownership of UNIX and UnixWare would include copyrights
associated with UNIX and UnixWare?
MR. JACOBS: Objection, calls for a legal conclusion.
A. I guess I have to answer the question?
(By Mr. Singer) Yes, you should if you understand the question.
A. Okay. I understand. Yes.
Q. Now, did you ever give any directions to the team that was
negotiating the deal, including Mr. Thompson, Mr. Chatlos, that
they should transfer all right and title and interest to UNIX and UnixWare but retain copyrights for UNIX and UnixWare from
being sold?
A. No.
Q. Did you ever tell anyone at Santa Cruz Operation that
copyrights for UNIX and UnixWare were not part of the
technology being sold?
A. No.
Q. Did you ever authorize anyone at Novell to tell anyone at Santa
Cruz that copyrights were not being sold as part of the transaction?
A. No.


This document contains similar testimony from a wide range of Novell and SCO executives, and the various parties doing the negotiations.

In addition, it was interesting to read sworn testimony by "Maureen O’Gara, a journalist covering the computer industry since 1972, recently testified that then Novell Vice Chairman Chris Stone conveyed to her, with “laughter,” that Novell was timing its ownership claims to coincide with SCO’s earnings report in order to “confound SCO’s stock position” and “upset the stock price.”" ... OUCH!

I'm thinking that type of behavior is flat out illegal, and in violation of SEC or Federal law?

Anyhow ... this really seems to indicate that the folks who actually sold UNIX to SCO intended - and did - sell the Copyrights. I'm not sure what Novell is going to pull out to demonstrate otherwise ...

Read the full text and comment ...

Scott C. Lemon
the.inevitable.org
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