Skip to Contents

Skip to Accessibility Help

Press Release

06/07/2007

Microsoft and LG Electronics Announce Broad Patent Licensing Agreement

Microsoft Corp. and LG Electronics (LGE) today announced that they have entered into a patent cross-license agreement to further development of the companies' current and future product lines. Microsoft has focused on patent agreements in the recent past to develop a best practices model for protecting intellectual property (IP) and respecting IP rights of others as well as building bridges with an array of industry leaders, including consumer electronics, telecommunications and computer hardware providers.

Microsoft Corp. and LG Electronics (LGE) today announced that they have entered into a patent cross-license agreement to further development of the companies' current and future product lines. Microsoft has focused on patent agreements in the recent past to develop a best practices model for protecting intellectual property (IP) and respecting IP rights of others as well as building bridges with an array of industry leaders, including consumer electronics, telecommunications and computer hardware providers.

Through this agreement, LGE will be able to use Microsoft's patented innovations in its products, including Linux-based embedded devices. Microsoft will have access to LGE's patents and will license other patents developed by LGE that are now owned by business solutions provider MicroConnect Group. The specific financial terms of the agreement are confidential, but the parties are disclosing that Microsoft will be making a net balancing payment to LGE and MicroConnect for operating system and computer system-related patents. LGE will be making ongoing payments to Microsoft for the value of Microsoft patents as they relate to Linux-based embedded devices that LGE produces.

"This agreement and our good relationship with Microsoft enables LGE to provide improved telecommunications solutions to our customers," said Jeong Hwan Lee, Executive Vice President, Intellectual Property Center at LGE. "We believe that the license arrangement with Microsoft provides appropriate recognition of the value of LGE's computer system-related patents, which includes patents directed to computer architecture utilized in game consoles and other products. We believe in the importance of respecting the IP rights of others and that patent collaboration and protection is a best business practice the whole industry should be engaged in." Alan Loudermilk, Founding Partner of MicroConnect, added "MicroConnect is pleased to be able to make a contribution to the strengthened IP relationship between LGE and Microsoft."

"This agreement is another example of how Microsoft is continuing to build bridges with others in the industry through intellectual property licensing" said Horacio Gutierrez, Vice President, Intellectual Property and Licensing at Microsoft. "We are pleased to be working with an industry leader and partner like LGE to meet our mutual business goals and customer needs."

In the past twelve months, Microsoft has announced similar agreements with companies such as Novell, Samsung, NEC, Fuji-Xerox, Seiko-Epson and Nortel to help build bridges between the world's leading computer hardware, software and telecommunications solutions providers.

close