SuSE Linux users to get $1.5m SCO indemnity from Novell

The major Linux vendors could be forced to beef up protection for open-source users following Novell's move to offer indemnification of up to $1.5m to each of its customers against the SCO lawsuit.

Now that it has completed its $210m acquisition of SuSE Linux, Novell said it will offer existing and new customers the option of protection from SCO's Unix copyright infringement lawsuits - providing they buy SuSE support and maintenance from Novell.

Analysts said the move will not stop SCO's march to the courtroom but said it could force other open-source vendors to offer more protection to their customers.

Tony Locke, senior analyst at Bloor Research, told silicon.com the increased protection is good news for any customers who qualify. "Certainly the Novell move will force the other major Linux suppliers to beef up their indemnification, which will add pressure to SCO. But SCO is set on its course," he said.

Linux vendor Red Hat has already set up its own legal defence fund to fight the SCO lawsuit, but was not immediately available for comment on whether Novell's move would lead to it offering more protection for developers and customers.

Nitin Maru, European VP of legal affairs at Novell, told silicon.com that even if SCO does have rights over the disputed code, Novell still owns some Unix copyrights and can incorporate that code into its products. Along with the indemnification, he said, this will reassure customers.

"There is real concern over the potential future impact of that [SCO] decision," he said. "We have had numerous conversations with our customers and there is that inherent uncertainty with what is going on in the public domain with SCO. This is something they [our customers] want to hear from us. Novell is prepared to stand behind Linux."

The Open Source Development Labs consortium has set up a $10m legal fund to protect Linux customers against SCO, but Maru said Novell has no plans to contribute.

"We are not contributing to that fund at this time," he said. "We have set up our own insurance policy at $1.5m per customer and they are pretty substantial amounts."