Microsoft and LG Electronics, best known for its DVD players, home theater systems and cell phones, announced on June 7 that they have entered into a patent cross-license agreement to enable LG to use Microsoft patented technology in its product lines, including in its Linux-based embedded devices.
In turn, Microsoft will have access to LGs patents. Microsoft will also be able to license other LG-developed patents that are now owned by its business solutions provider, the MicroConnect Group, a home and SMB (small and midsize business) system integrator.
The specific financial terms of the agreement are confidential; however, the parties are disclosing that Microsoft will be making a net balancing payment to LG and MicroConnect for patents related to operating systems and computer systems.
For its part, LG will be making ongoing payments to Microsoft for the value of Microsoft patents as they relate to Linux-based embedded devices that LG produces.
In the announcement of the deal, Microsoft included what appears to be its new boilerplate wording about how Microsoft "has focused on patent agreements in the recent past [such as its recent Xandros deal and earlier Novell deal] to develop a best-practices model for protecting intellectual property (IP) and respecting the IP rights of others, as well as building bridges with an array of industry leaders."