Linked by Andrew Youll on Sat 8th Oct 2005 09:20 UTC, submitted by Yves R. Crevecoeur
IBM IBM has dropped its three remaining claims of patent infringement in a lawsuit against the SCO Group, which originally sued Big Blue in March 2003 over claims it broke a Unix licensing contract by moving technology to Linux.
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countersuits
by melgross on Sun 9th Oct 2005 06:09 UTC
melgross
Member since:
2005-08-12

The concept behind a countersuit is to tell the other party that even if they win their part, they might very lose the other part. Often this will influence the first party that it will be too expensive and time consuming to continue the suit, and they will settle.

IBM dropped the patent claims not just to finish earlier, though that was part of it, but also because a countersuit drains the opposing company. As SCO had made a deal with Boise (Spelling?) awhile ago where they would cap their fees in exchange for stock, that would no longer happen.

IBM most likely smells blood at this time and sees no point in spending perhaps $4 to 6 million on patent cases that no longer matter. My wife (who is an attorney and senior vice president at Citicorp), laughed when I told her that IBM said that SCO was too small to give them enough money from the patent case to have it matter. She thought that IBM did well putting it that way.

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