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Dell and Microsoft enter IP agreement to license each other's patents

March 27
8:47 AM 2014

Dell and Microsoft said they have inked a deal on intellectual property which will have both firms licensing the other's patents about Android, Chrome OS devices and Xbox consoles, TechCrunch reported.

The terms of the deal state that both technological firms have agreed on the royalty payments for the products of Dell that will be functioning on the Android or Chrome platforms. They also agreed on the consideration to Dell for licensing the Xbox gaming console of Microsoft, the statement about the deal said.

Although no specific details about the financial agreement were given, TechCrunch reported that Dell most probably got discounted on the royalty payments it would make on Xbox consoles since it lays claim to some intellectual property to the console.

The statement said the recently-announced deal continues their business relationship which has been ongoing for nearly three decades. Microsoft Innovation and Intellectual Property Group Corporate Vice President and Deputy General Counsel Horatio Gutierrez said, "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."

TechCrunch reported that agreement touching on Android and Chrome OS comes as no surprise, except for the fact that Microsoft is able to make Dell one of its paying clients. This also weakens the domination of Google's mobile platform and its bid to enter the market for traditional PCs. The rationale behind this reasoning is that when the unit cost of Android and Chrome OS is increased, it also corresponds to a higher cost for each unit which would lessen the maker's profits or makes them more costly to the buyer, both of which aren't really ideal choices, the report said. 

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