Trademarks: Use Requiring A Sublicense.

On the other hand, if you plan to market a Linux – based product or service to the public using a trademark that includes the element “Linux,” such as “Super Dooper Linux” or “Real Time Linux Consultants” you are required to apply for and obtain a low-cost sublicense from LMI. This is true whether or not you apply to register your trademark with a government.

This annual license fee they refer to runs between US $200-$5000 based on projected revenues based off your product, and it’s aimed at people marketing a commercial distribution such as “Red Hat Enterprise Linux” or similar.

LawMeme points to some decent information on what they’re trying to do…

The Linux Mark Institute is a non-profit that manages the Linux trademark, permitting, for example Linuxchix.org (a community site for Linux developers of the female persuasion), but opposing such uses as Linuxchix.com (a former pornography site)

On first visit, the LMI sounded like a scam, possibly something setup by an organisation like SCO to try to make a bit more money off the whole Linux industry, but instead I find that it’s an organisation run by Jon “Maddog” Hall and Linus Torvalds, and they would appear to be taking things on a case by case basis.