Linked by Thom Holwerda on Mon 9th Oct 2006 17:30 UTC, submitted by JCooper
SCO, Caldera, Unixware A declaration by SCO's backer, BayStar has revealed that the software Giant Microsoft had more links to the anti-Linux bad-boy. The declaration made by from BayStar general partner Larry Goldfarb has turned up as part of IBM's evidence to the court. Goldfarb says that Baystar had been chucking USD 50 million at SCO despite concerns that it had a high cash burn rate. He also claims that former Microsoft senior VP for corporate development and strategy Richard Emerson discussed "a variety of investment structures wherein Microsoft would 'backstop', or guarantee in some way, BayStar's investment". Thanks to The Inq for the summary.
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New story up on Grok
by Shaman on Mon 9th Oct 2006 22:12 UTC
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"I now have the Larry Goldfarb Declaration, and now that I've had a chance to read it in full, what he says is actually a great deal more damaging, if established, than the part IBM highlighted in its Memorandum in Support of Its Motion for Summary Judgment on SCO's Interference Claims. According to the Declaration, Richard Emerson was not the only Microsoft employee Goldfarb was dealing with in connection with the BayStar investment in SCO. He mentions by name two others, from two other departments. He says, "I had discussions with Kenneth Lustig, Microsoft's managing director of intellectual property and Tivanka Ellawala, from Microsoft's corporate development department regarding the SCO deal." If true, that would seem to rule out Mr. Emerson being on some kind of rogue mission. You can see Mr. Lustig on this Directions on Microsoft chart of executives, showing him reporting to Marshall Phelps, who in turn is under Brad Smith, the Microsoft General Counsel and Secretary.
Goldfarb recounts conversations with David Boies as well, and Goldfarb, then considering investing in SCO back in 2003, says Boies told him that he thought IBM was going to settle quickly. Obviously that didn't happen. Later, when Goldfarb asked to see the evidence against IBM, so his consultants could evaluate the strength of SCO's claims, he says that Boies said he'd provide it but he never did. Eventually Boies stopped taking Goldfarb's phone calls, the Declaration relates. I'm wondering now if Mr. Boies will end up a witness in this case, if IBM's motion is denied and SCO gets to proceed with its interference claims. I'd venture a guess that SCO wishes it had never accused IBM of interfering with SCO's business relationship with BayStar. But let's let Goldfarb tell his own story and I'll get the PDF up as soon as I can. This is just one of more than 500 exhibits that IBM has provided the court in support of its various motions for summary judgment. It's number 165. I'll have the exhibits list up as text shortly as well."

Go see it...

So much for the "rogue Microsoft employee" defense.

Edited 2006-10-09 22:13

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