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Why would IBM settle? | 193 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Aren't Trials also Expensive?
Authored by: Anonymous on Tuesday, June 11 2013 @ 06:44 PM EDT
Trials are also risky, jury's have been known to be less then sane (See
AppleVSamsung). So if SCO manages to get to the jury part of the trial, they
stand a small chance at temporary success. And lots of people (Microsoft, Apple)
would pay a lot to see linux get in legal trouble.

[ Reply to This | Parent | # ]

  • Depends - Authored by: Anonymous on Tuesday, June 11 2013 @ 11:39 PM EDT
A flashback
Authored by: SpaceLifeForm on Tuesday, June 11 2013 @ 08:24 PM EDT
2006-04-12 Backlink

Is the arbitration officially dead yet? I think not.

---

You are being MICROattacked, from various angles, in a SOFT manner.

[ Reply to This | Parent | # ]

Aren't Trials also Expensive?
Authored by: tknarr on Wednesday, June 12 2013 @ 01:59 AM EDT

That's the thing: "a fortune" is relative. IBM's gross income for 2012 was $49 billion. Their net income was $16 billion, or $25 billion if you figure it by EBIDTA. Now, suppose SCO's impugning IBM's reputation and ethics costs IBM just 1% of their net income a year for the next 20 years (a pretty short timeframe, IBM has current equipment lines that're older than that). That's $3.2 billion that it'll cost IBM to not fight this to a conclusion. If you figure it's worth spending 10% of the potential cost on the matter, that's $320 million.

To put that in scale, that's IBM walking into their lawyers and saying "We want these guys squashed like bugs. Here's a quarter-billion dollars to start, call us if you need more.". I figure even with the kind of lawyers IBM hires, a quarter-billion buys you a lot of scorched earth.

[ Reply to This | Parent | # ]

Why would IBM settle?
Authored by: jjs on Wednesday, June 12 2013 @ 06:42 AM EDT
They could have bought TSG for far less than what this trial
has cost back in the beginning, and they knew that. TSG
accused IBM broke a contract - and IBM lives and dies by
contracts. Also, IBM knows if they settle, every other two-
bit operation will come after them for money. So, IBM has a
vested interest in getting TSG to publicly retract that
statement and in turning TSG into a smoking Caldera in the
Utah desert as a lesson for those other companies.

---
(Note IANAL, I don't play one on TV, etc, consult a practicing attorney, etc,
etc)

[ Reply to This | Parent | # ]

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