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.

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  • Jake

    Great move for both. Microsoft and Dell have always gone great together and I’m glad their relationship seems to be on good terms after all these years.

  • Sally Black

    From the sound of it, both companies will benefit from it. Given how much Microsoft has invested in Dell, it makes sense to keep dealing with them. Good job on getting this done.

  • Jason Claven

    After investing 2 billion into Dell, it’s no surprise both companies want royalties!

  • Bill Franklin

    Does Dell make out better here? Microsoft’s a bigger company with wider product base, so I’d have to imagine Dell’s happier about this than Microsoft.