IBM (NYSE: IBM - news) is taking the wraps off of its proprietary software technology, releasing 500 patents to open source developers and challenging its I.T. competitors to follow suit.

Big Blue touted the move as the largest ever public offering of patents and as a major shift in the way the company manages and deploys its intellectual property (IP) portfolio. The pledge is applicable to any individual, community or company working on or using software that meets the Open Source Initiative (OSI) definition of open source software.

IBM conducted a detailed analysis of its IP policy and determined that the best way to foster innovation is to promote cooperation among software developers, Douglas Heintzman, director of technical software strategy, told NewsFactor.

"As the information age matures, collaboration is critical for generating new ideas and technologies," he said. "We don't want intellectual property to get in the way of that."

The company's pledge is the first step toward establishing a balance between invention and the limitations posed by IP, Heintzman said, with IBM agreeing not to charge royalties or restrict the use of its patents for those promoting open standards and interoperability.

Eventually, the company plans to form an industry-wide "patent commons" in which IP is used to build a platform for innovations in areas of broad interest to information technology developers and users.