Microsoft Corp. said that it has agreed on a patent deal with Pegatron Corp.a Taiwanese ODM which deals with smartphones, tablets and other part including Apple, ASUS and HP — as the two companies have entered into a licensing agreement for devices running Android and Chrome OS.So from now onwards Pegatron will license Microsoft’s patent portfolio for Android and Chrome devices.
The agreement covers e-readers, smartphones and tablets, with Pegatron paying Redmond royalties of unknown amount.As i said ,Financial details of the pact were not disclosed though, but it calls for Microsoft to receive royalties from Pegatron, which makes PCs, game consoles, TVs and other consumer electronic devices.
Patents give the holder the exclusive right to use certain technologies or business processes in the U.S. They can also opt to license those rights to other companies for royalties.If you know Microsoft has signed more than 1,100 patent licensing deals since 2003.
The software giant also has been active in acquiring patents.Earlier this month, it agreed to pay AOL $1.06 billion in cash for 800 patents and related applications, as well as a license for the Internet pioneer’s remaining patents.Microsoft then turned around and sold most of the patents to Facebook for $550 million, while retaining a license to use the AOL patents.Lets see how this deal can give Microsoft some extra mooney rather than settling patents infringements and courtroom conflicts.
Microsoft and Pegatron Corp. Sign Patent Agreement Covering Android- and Chrome-Based Devices
The contents of the agreement have not been disclosed, the parties indicate that Microsoft will receive royalties from Pegatron under the agreement.
REDMOND, Wash., April 25, 2012 /PRNewswire/ — Microsoft Corp. and Pegatron Corp. have signed a patent agreement that provides coverage under Microsoft’s patent portfolio for a broad array of Pegatron products including eReaders, smartphones and tablets running the Android or Chrome platforms. Although the contents of the agreement have not been disclosed, the parties indicate that Microsoft will receive royalties from Pegatron under the agreement.
“We are pleased to have reached this agreement with Pegatron and proud of the continued success of our Android licensing program in resolving IP issues surrounding Android and Chrome devices in the marketplace,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft. “With this agreement, Microsoft has now licensed four of the top five Taiwanese ODMs.”
Microsoft’s Commitment to Licensing Intellectual Property
The patent agreement is another example of the important role intellectual property plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 1,100 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft’s significant R&D investments and its growing, broad patent and IP portfolio.
More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing.