Microsoft has signed a patent cross
licensing agreement with consumer electronics manufacturer
LG.
The partnership allows both firms to use the other's intellectual property in
their products.
Microsoft will pay LG a lump sum for the use of its patents on operating
systems and computer systems, and LG will make ongoing payment to compensate
Microsoft for the use of embedded Linux in its products. The remaining terms of
the deal were not disclosed.
The General Public License (GPL) that governs Linux prohibits exclusive
patent deals that protect only select Linux users. The Microsoft-LG partnership
however is able to circumvent the GPL provisions by offering a covenant not to
sue rather than a genuine license agreement.
Microsoft claimed that the deal is similar patent agreements that it has
signed with companies including Fuji Xerox, NEC, Novell and Samsung.
The Novell partnership however has some significantly differences. There
Microsoft is providing a license for its intellectual property directly to the
end user rather than the developer (Novell). The LG deal more closely mimics a
traditional patent licensing cross licensing agreement.
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