Originally published December 3 2005
Linux network forms to open trading of patents
by Mike Adams, the Health Ranger, NaturalNews Editor
The Open Invention Network (OIN) has been formed by IBM, Sony, Royal Philips Electronics and Linux's largest software distributors to allow for royalty-free trading of Linux patents.
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 of Japan and Philips of the Netherlands--and Linux distributors Red Hat and Novell.
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, N.Y.
Initial OIN patent holdings include a set of electronic commerce patents that were purchased from business-to-business software pioneer Commerce One by JGR Acquisitions on behalf of Novell.
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.
Rosenthal said in a phone interview that he had a pool of funding that was all he needed to go out and acquire the patent portfolio to defend core Linux software and applications.
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