As patents between companies become a costly game of revenue chasing, the need to form alliances between companies is highly important. On Wednesday, Microsoft and Dell jointly announced a patent licensing agreement, and should bring forward new technologies to customers around the globe.
This patent licensing agreement between the two companies is a notable one, as they both compete against each other in the enterprise space. But, as one of Microsoft’s biggest OEM’s, Microsoft needed to make sure they keep Dell happy, and using Microsoft products in their future.
What’s Included In The Agreement?
In the patent licensing agreement, Microsoft and Dell agreed to license each company’s applicable intellectual property related to Android, Chrome OS, and Xbox gaming consoles. This is a wide range of products, as Microsoft makes a license fee on each Android device sold, and now Dell won’t have to pay this on future devices.
With the agreement, the two companies alo agreed on future royalties for Dell’s products running on Chrome or Android. A consideration was also noted to Dell for a license for Xbox gaming consoles as well. This could prove interesting as Dell could make a version of the Xbox or make a Xbox like console in the future.
Is This Good For Microsoft?
This deal is good and bad for Microsoft according to many insiders. They are forging a patent licensing agreement with a large partner, and also making them happy at the same time. Dell will save on future license payments with this agreement, and gives them the ability to build on Android, Chrome OS, and Xbox like products.
It’s interesting that Chrome OS was included since that is a Google product, but the agreement covers that as well. Microsoft needs as many allies as it can, and a huge billion dollar business like Dell is certainly a big ally. This is a good move for the group at Microsoft, and makes for the latest in patent agreements that Microsoft has signed with companies. Voxx Electronics just last month also signed an agreement with Microsoft as well.
This is a good move for Dell and Microsoft. It means the two companies can be partners and build on future devices together.
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