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Mono is an open source project led by Novell to create a .NET-compatible set of tools that include, among others, a C# compiler and a Common Language Runtime. Mono can be run on Linux, BSD, UNIX, Mac OS X, Solaris, and Windows operating systems.
Microsoft only produces the Silverlight runtime for Windows and OS X, leaving Linux support to Novell's Mono project, which produces Moonlight. Mono developers argue that Mono is not chasing tail lights, but in the case of Moonlight it very clearly is.