Linspire tempts white-box vendors with CNR royalties

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Sep. 14, 2006

Linspire Inc. launched a revamped partner program on September 14 that will pay system builders a percentage on all commercial Linux software and services purchased by users of either Linspire or Freespire pre-installed desktop and laptop computers using the company's CNR (Click N' Run) technology.

CNR was previously a fee-based service offered at annual subscription rates of $20 for basic access to new programs. In late August, Linspire made CNR a free service. Linspire's Gold Service, which offers discounted prices on commercial software -- such as the StarOffice 8 office suite and the Win4Lin Pro Windows/Linux virtual machine -- is still $49.95.

In addition to offering 18 months of revenue share per computer from CNR revenues, the new program also features a real-time share system that reports computer Light-up data, CNR Registration User percentage, and average revenue-per-user generated through CNR.

"Linspire has been very successful in selling products and services to desktop Linux users via our CNR technology," said Kevin Carmony, CEO of Linspire in a statement." We are excited to now share this successful model with our valued system builder partners. Providing post-sale revenue will further entice PC suppliers around the world to pre-install Linux on desktop and laptop computers, critical for Linux's success."

The renewed Builder Program has no annual fees or volume commitments, and offers system builders the option to build pre-installed computer systems with both the commercial Linspire and community-driven Freespire desktop Linux operating systems.

System builders will be able to log into a personalized portal, to see real-time data when their computer systems are turned on and connected to the Internet for the first time, as well as conversion data for purchases and their share of the revenue from each purchase, according to Linspire. Checks are then automatically mailed on a quarterly basis to participating system builders.

This information can also be used to help system-builders monitor their program success, and make adjustments to marketing messaging, initial out-of-box experience, support, and so on.

"Having served the desktop Linux channel for over four years now, we continually listen to our partners," added Larry Kettler, Linspire's VP of worldwide sales and marketing. "They wanted us to eliminate all barriers to enter the desktop Linux market for system builders of all sizes and help them generate more profit per computer shipped out the door. This new program does both."

Linspire has also launched a channel partner web portal. The site provides marketing, sales, and support resources, and tools for resellers and ISVs (independent software vendors). As with the Builder Program, the Reseller Program is free to join, and members can purchase products directly from either Linspire or Ingram Micro.

The San Diego-based Linux distributor became an Ingram Micro partner almost a year ago. Through Ingram Micro's Access Channel, Ingram customers can buy the entire Linspire Linux product line.

The program also includes sales materials and sales training resources that are intended to help resellers better promote Linspire and desktop Linux.

Linspire, which has long had a history of working with resellers and small white-box vendors, is hoping that these moves, combined with its recent embrace of proprietary drivers and software to make it easier to run common devices and audio/video programs in Linux, will help propel its Linux distribution into becoming a major, and profitable, desktop player.

-- Steven J. Vaughan-Nichols

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