Microsoft to Novell: You scratch my back, I’ll scratch yours

Microsoft and Novell had signed a deal the other day with a promise not to sue clients of either party, even if the Linux software from both signatories violate patents of the other company. Pretty sleek arrangement the way I see it.

The agreement with Novell is referring to some of the Linux technology that Microsoft claimed it has patents right to, even though the details of which patents involved were not disclosed.

I am not sure what to call of this kind of agreement, but Microsoft agreed to pay Novell $348 million, while Novell pays Microsoft $40 million, on the basis that Novell has fewer customers.

The supporters of Linux are said to be preparing a challenge to the deal, but the details of the counter measure are still not available.

The prospect of a drawn-out legal battle with Microsoft, an experienced litigator, could push users of Linux into the hands of Novell (Nasdaq:NOVL – news) and away from dominant Linux provider, Red Hat (Nasdaq:RHAT – news), which does not have such a deal with Microsoft.

Read [Yahoo News]