The policy covers a range of Microsoft products including Windows, SQL Server, Exchange Server, and Office, and protects users from legal costs and damages related to any potential intellectual property disputes. It excludes embedded products such as Windows CE and Windows XP Embedded.
IP indemnification has risen up the agenda in recent months following SCO Group Inc’s claim that Linux contains Unix System V IP, and its attempt to hold end users such as AutoZone Inc responsible.
Microsoft has been feeding off concerns about IP protection in Linux in its on-going battle with Linux and open source, with CEO Steve Ballmer recently claiming: No vendor today stands behind Linux with full IP indemnification.
That claim prompted a response from Novell Inc, now one of the biggest supporters of Linux as a result of its acquisitions of Ximian Inc and SUSE Linux AG, that it does in fact offer indemnification against IP threats to SUSE Enterprise Linux users.
As well as attacking the IP protection plans of Linux vendors, Microsoft has also been amending its own indemnification policies, lifting a monetary cap for volume licensees in 2003, and now opening the program out to all users.
In comparison, Novell’s indemnification policy has a cap of $1.5 million or 125% of the amount customers have spent on infringing products, as well as a $50,000 license, upgrade and update minimum purchase requirement, and the need for upgrade protection and a qualified technical support contract.
Microsoft’s new policy is not without its limitations, although these mostly include modifying and altering the software, distributing it to a third party, and running software after it has been discontinued.
One limitation that users might want some clarification on, however, is the combination of the covered software with a non-Microsoft product, data or business process. ComputerWire contacted Microsoft for an explanation of this term but had not received a response by press time.
Red Hat Inc also offers an Intellectual Property Warranty for its Enterprise Linux products, although it only promises that the company will attempt to obtain the rights to any infringing code or modify or replace it. The company has also set up the Open Source Now fund to assist companies fight litigation relating to software developed under the GPL.
There are also a number of businesses opening up to offer open source software users insurance against intellectual property claims, including Open Source Risk Management Inc, which in April declared Linux free from copyright infringing code following a six-month evaluation of the Linux kernel software files.
In January 2004, Open Source Development Labs also set up a $10 million fighting fund to protect Linux users from SCO’s legal claims, including donations from IBM Corp, Intel Corp, and MontaVista Software Inc.
