By Michael Paige
Last Updated: 8/3/2004 1:39:00 PM

LOS ANGELES (CBS.MW) -- In an effort to spur development of applications written in the Java programming language, IBM will announce later Tuesday that it is donating database code, valued at an estimated $85 million, to the open-source community.

Big Blue (IBM) will give the more than 500,000 lines of code for its Java-based Cloudscape database software to the nonprofit Apache Foundation. The move marks one of the largest donations of its kind to the open-source initiative and is IBM's first full commercial product granted to open source.

The software, which will be called "Derby" by the open-source project, is targeted for use in applications like small Web sites, point-of-sale systems and small departmental applications.

"By open-sourcing Derby, we hope to accelerate the development of Java-based applications and to drive innovation around Linux and Java communities," said Janet Perna, general manager of IBM's data management operations.

The company added that it hoped the move would accelerate innovation surrounding Java applications, and in turn, create new business opportunities.

The software is used in more than 70 IBM software products, including its WebSphere line.

In recent trading, shares of Armonk, N.Y.-based IBM traded lower by 82 cents at $85.87.

Open-source software is developed by volunteers and licensed to users free of charge to encourage further development of the software. Such software, which can be freely modified, sprouted as an alternative to proprietary software owned by companies including Microsoft (MSFT).

Java was developed by Sun Microsystems (SUNW) and is widely used for online applications.

IBM and Apache plan to work together to establish Derby as a "leading open-source database offering," according to IBM.

Big Blue is a strong supporter of open-source software like the Linux operating system, and takes part in more than 150 open-source projects.

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