Linux software vendor Novell Inc. of Waltham is expanding its alliance with Microsoft Corp. into China, in a bid to encourage Chinese companies to start paying for the software they use to run their businesses.

Three Chinese firms - People's Insurance Company of China, The Dairy Farm Co., and Dawning Information Industry Co. - will purchase from Microsoft three-year licenses for Novell's SUSE Linux Enterprise Server software. "Both Novell and Microsoft are committed to furthering this partnership, and we couldn't be happier with the results to date," said Novell chief executive Ron Hovsepian.

It's the latest development in the partnership between Novell and Microsoft, which had frequently attacked the Linux operating system, created by thousands of volunteer programmers worldwide. Microsoft has claimed that Linux contains features that violate Microsoft patents, and hinted that Linux users could face financial penalties for patent infringement.

Because Linux software is available free of charge, many Chinese businesses use it without paying. These companies miss out on the service, support, and upgrades that companies like Novell can provide. By encouraging Chinese firms to pay for Linux, Microsoft is helping Novell tap a valuable revenue stream.

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