The first major patent coup of the year! Microsoft and Dell have entered into an agreement relating to intellectual property that will see both companies license each other’s patents, going forward.
Microsoft announced this in a press release, with Horacio Gutierrez, corporate vice president and deputy general counsel of the Innovation and Intellectual Property Group at Microsoft saying:
“Our agreement with Dell shows what can be accomplished when companies share intellectual property. We have been partnering with technology manufacturers and vendors for many years to craft licensing deals, instead of litigation strategies.”
In the past two years alone, Microsoft has signed up a host of companies (mainly Android manufacturers) in licensing deals, with some estimates putting the amount of money Redmond earns through its patents every year in the $1 to $2 billion range.
As part of this agreement with Dell, however, both companies will license each other’s applicable intellectual property related to Android, Chrome OS and Xbox gaming consoles.
Dell will pay Microsoft royalty dollars every time it ships devices that are powered by either of these two Google operating systems. Rather interesting to see what kind of patents Dell holds that are used in Xbox, surely.
It is said that Dell possesses some IP related to the surface area of the console. Neat!
One can also imagine the hardware manufacturer likely got a discount on its royalty payments as a result of this arrangement, and also because of its close business relationship with Microsoft, whereby Redmond invested $2 billion to help Dell go private again last year.