The floodgates may soon open.

[Josef Lowder]

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."