Partner Indemnification Extended

Small OEMs and ISV partners that ship or incorporate Microsoft software will get more assistance from Microsoft in fighting intellectual property (IP) lawsuits that involve that software. The move lets Microsoft become directly involved in legal disputes that might eventually affect its products, and helps the company cast doubt over the legal status of open-source products, such as Linux.

System Builders Get Full Protection

The revised indemnification policy most directly affects members of Microsoft’s System Builder partner program-smaller OEMs. It applies to all Microsoft software that the system builder has licensed from a legitimate OEM distributor to ship on new PCs. If a third party claims that the covered software infringes on any of its copyrights, patents, trademarks, or trade secrets, and sues the system builder, then Microsoft will manage the system builder’s legal defense, pay all legal expenses, and pay all settlements up to the amount the system builder paid for covered software during the prior one-year period. Previously, these partners got no indemnification coverage from Microsoft, unlike larger OEMs.