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 Corp. 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..
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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.
I hope this works as promissed.

[link|http://biz.yahoo.com/rb/051110/linux.html?.v=2|Link].