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.
Market researcher IDC estimates that the world-wide 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.
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