http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&storyID=2005-11-10T134527Z_01_DIT021923_RTRUKOC_0_US-LINUX.xml
(Reuters) - Three of the world's biggest electronics companies
-- IBM, Sony and Philips -- have joined forces with the two largest Linux
software distributors to create a company for sharing Linux patents,
royalty-free.
The Open Invention Network (OIN), as the new firm unveiled on Thursday is
known, could mark a breakthrough in resolving how to protect vendors and
customers from patent royalty disputes resulting from freely shared Linux
code.
If OIN's approach to managing intellectual property wins acceptance, it
could overcome a big stumbling block to wider corporate adoption of Linux
and pose challenges for major opponent Microsoft, which has argued that
relying on "open source" software poses legal risks.
OIN is funded by the world's largest computer company, IBM two consumer
electronics giants -- Sony Corp. of Japan and Philips of the Netherlands --
and Linux distributors Red Hat Inc. and Novell Inc.
Market researcher IDC estimates that the worldwide Linux business will grow
25.9 percent annually, doubling from $20 billion this year to more than $40
billion by 2008. If patent risk is lifted, Linux use could accelerate at an
even faster rate, said Richard Doherty, an industry consultant with
Envisioneering Group of Seaford, New York.
"This is the green light that a lot of companies have been waiting for,"
Doherty said. "Unless your name was Novell or Red Hat, you couldn't be sure
you had clear legal title to Linux."
Patents owned by OIN will be available without payment of royalties to any
company, institution or individual that agrees not to assert its patents
against others who have signed a license with OIN, when using certain
Linux-related software.
Traditionally, patents have been pursued for two primary reasons -- to
defend one's own intellectual property or for barter to trade in
cross-licensing agreements to gain access to other companies' patents. OIN
represents a new form of cross-licensing that its backers say could spur
innovation.
"A lot of lawyers are going to throw their hands up and ask, 'How do we make
money from this?'" Doherty said. "The answer is: 'Maybe they don't.'"
"This is really about Linux and the opportunity to expand the Linux
economy," he said. "We are seeking no royalties."
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