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Open Invention Network to buy and license patents for free

A new patent holding company named Open Invention Network has been established with support from five technology and consumer electronics companies — IBM, Novell, Philips, Red Hat, and Sony. This patent holding company has an unusual business plan of buying certain patents and licensing them without charge. The CEO of this Open Invention Network is Gerald Rosenthal is a lawyer and the former director of IBM’s intellectual-property licensing program.

Gerald used to lead the technology-licensing program at IBM, which has routinely earned US$1 billion or more in recent years. He is however aiming to pursue a different strategy at the new company. He said: “By itself, this is not a money-making enterprise. Our goal is to enable the Linux ecosystem to grow.”

The supporters of this company are all users or distributors of the free operating system. This makes them interested in supporting the cause, which is aimed at fending off threats to Linux. Linux operating system is continuing to be used everywhere from corporate data centers to consumer devices like digital music players. This is despite some legal challenges to certain Linux users based on illegal usage of certain patented technologies.

Patents owned by the Open Invention Network will be available free to any company, organization or individual that agrees not to assert its patents against others who have signed a license with the new patent-holding company.



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