Boston: The Free Software Foundation has said that it is reviewing Novell Inc.'s right to sell new versions of Linux operating system software after the open-source community tore in to Novell for teaming with Microsoft Corp.

The foundation controls intellectual property rights to key parts of the open-source Linux operating system.

Members of the open-source community that develops Linux and other free software programs raised a storm over in November when Novell entered a wide-ranging business deal with Microsoft.

Eben Moglen, general counsel of the foundation, said "The community of people wants to do anything they can to interfere with this deal and all deals like it. They have every reason to be deeply concerned that this is the beginning of a significant patent aggression by Microsoft."

Moglen said critics of Novell's deal with Microsoft called on the foundation's board to punish Novell by banning it from distributing new versions of Linux software.

Linux is a hugely popular variant of open-source software with an evangelical following among the software-developer fraternity that has even Microsoft worried. Unlike Microsoft's proprietary software such as Windows, open-source software lets developers share code and add functions and is generally available at no cost.

Moglen said the board had not yet decided on the issue but he expected it to give a ruling within a fortnight. If it decides to act against Novell, the ban would apply to new versions of Linux covered under a licensing agreement due to take effect in March.

Novell has declined to comment on the grounds that it would be premature to speculate on how the issue would be resolved react only over the final outcome of the showdown it faces.

Software companies such as Novell sell standardised versions of open-source programs with customised features, maintenance plans and technical support.

Though Linux sales accounted for 5 per cent of the $967 million in revenue that Novell reported last year, the deal with Microsoft offers far financial rewards as Microsoft will make two upfront payments totalling $348 million.

The two companies agreed to jointly sell their products and also develop technologies to make it easier for businesses to use Linux alongside Windows software. They will also license each other's intellectual property.

Members of the open-source community have called on Novell to pull out of the pact, saying it undermined the patent position of Linux software and also give Microsoft an edge in persuading businesses to use its products over Linux and other types of open-source software.

Not only does the threat present the prospects of substantial loss of revenue for Novell, it also adds pressure on the software firm to enhance its R&D spending to upgrade its software without access to the latest versions of the open-source code provided by the foundation.