Microsoft and Dell have reached an agreement relating to each companies intellectual property that includes Android and Chrome OS devices as well as Xbox consoles.
The deal, which was announced by Microsoft hours ago, will see Dell pay Microsoft royalties when it ships a device that runs on Google’s Android or Chrome OS with Dell getting a discount on the payments thanks to its intellectual property inside the Xbox.
“Our agreement with Dell shows what can be accomplished when companies share intellectual property,” said Horacio Gutierrez, corporate VP and deputy general counsel of the Innovation and Intellectual Property Group at Microsoft. “We have been partnering with technology manufacturers and vendors for many years to craft licensing deals, instead of litigation strategies.”
Microsoft has a significant hold over certain parts of the Android and Chrome OS market when it comes to IP rights and has slowly signed deals over the past few years that could eventually drive the price of Google devices upwards.
This has manifested itself in a variety of different deals signed by Microsoft since December 2003 with the likes of HTC, Samsung, Suanta, Copal Electronics, LG, Pegatron and Foxconn. Among the patents that Microsoft owns are related to navigation and how websites display content and the agreement with Dell could very well concern these patents.
Microsoft’s patent licensing deals came after the company had taken legal action against a number of parties using its technology in devices. In one case that played out in March 2011, it sued Barnes & Noble, Foxconn and Inventec for patent infringement related to the Nook eBook reader and tablets that are manufactured by Foxconn and Inventec.
“Today’s announcement builds on our history of collaborating to bring new technologies to market. The relationship between Dell and Microsoft continues to help Dell deliver choice and flexibility to customers looking for the best technology to meet their needs,” added Neil Hand, vice president, End User Computing Products at Dell.