Microsoft has spun out its Software Licensing and Protection Services business to a new startup, InishTech, based in Dublin, Ireland, the company said this morning. The deal was made through Microsoft's IP Ventures program, which was launched in 2005 to license the company's internally developed technologies to startups and entrepreneurs.

Inrix, Sabi and Zumobi are among many companies that have previously licensed Microsoft's technologies through the program. But the InishTech deal is the first time IP Ventures has spun out an established Microsoft business, according to the company. InishTech will take over the Software Licensing and Protection Services customer base -- more than 120 companies -- as part of the arrangement.

Microsoft launched the Software Licensing and Protection Services business in 2007, but executives later decided that it "did not fit into the company’s core business line," according to a story about the InishTech deal on the Microsoft web site.

In taking over the Microsoft business, InishTech will offer software developers a way to build alternative licensing models into their programs, including trial periods, subscriptions, tiered access and utility-based pricing, in which customers are charged based on usage.

Microsoft will have a minority interest in InishTech. It will also provide software service and support as the customers transition to InishTech. The CEO and founder of InishTech is Aidan Gallagher, previously executive vice president of Similarity Systems. The organization Enterprise Ireland helped bring the deal together, according to the company.

No Microsoft employees are shifting to InishTech, a company representative said.