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CA Owes Canopy Offshoot $40m
August 18, 2003
Summary
According to a settlement cut Monday on the courthouse steps with the Canopy Group and Canopy company Center 7 while they were picking a jury inside, Computer Associates is to pay a cool $40 million to get out from under breach-of-contract charges. The settlement will slash two-three cents off of CA's earnings, the company computes.
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By Maureen O'Gara 
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According to a settlement cut Monday on the courthouse steps with the Canopy Group and Canopy company Center 7 while they were picking a jury inside, Computer Associates is to pay a cool $40 million to get out from under breach-of-contract charges. The settlement will slash two-three cents off of CA's earnings, the company computes. Need we point out that it's a small world and that the Canopy Group is the largest stockholder in the rogue SCO Group and that Center 7, a Canopy foundation, is one of SCO's sister companies, part of a joint venture handling SCO's Volution remote install technology, and that Computer Associates is squarely on IBM's side in the Linux debate that SCO, ahem, has launched? To be really ironic, we might also mention in passing that CA was an investor in Center 7 and that Center 7's CEO Chris Skillings is an ex-CA regional sales VP. Anyway, CA for one doesn't want to talk about the particulars of the case - and of course the settlement is hedged in with non-disclosure barbed wire - but once upon a time Center 7 was supposed to deliver CA's Unicenter TNG management widgetry in a hosted MSP model as a thing called PilotCenterSM, described as Center 7's flagship product. The suit, which apparently charged CA with competing against Center 7 and wooing the same customers, dates to 2001, the year the strategic alliance between the two companies was cut. Skillings was hired to launch PilotCenterSM. He says CA is no longer considered an investor.

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About the author
Maureen O'Gara is editor-in-chief of Maureen O'Gara's LinuxGram(TM) - published weekly by G2 Computer Intelligence Inc. and distributed by Linux Business Week. (more)

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