Legit claim (Score 2, Insightful)

Linux Australia is getting Jeremy Malcolm to secure the use of the trademark "Linux" for use in Australia on behalf of Linus Torvalds via the Linux Mark Institute.

The reason is that unscrupulous operators have been abusing the Linux trademark, and so Linux Australia decided to persue securing it on behalf of Linus. (aka doing the right thing)

The T's and C's (i.e. charging for use of the trademark Linux in Australia) are no different from those identified in the Linus-approved Linux Mark Institute. But note, that Jeremy Malcolm's notice is NOT asking for money, just saying that in the future you may be asked to licence the trademark if you sell a product that is levereging the Linux trademark. This is a key point in trademark law - to secure the trademark in the first place to stop some companies from doing the wrong thing.

See Jon Oxer's blog post on the topic (he's Linux Australia's president).