Xiaomi, Microsoft Enter Patent Licensing Agreement; Xiaomi to Preload Office, Skype

Advertisement
By Reuters | Updated: 1 June 2016 15:16 IST
Highlights
  • Microsoft is selling about 1,500 patents to Xiaomi.
  • The deal includes a patent cross-licensing arrangement.
  • Microsoft patents includes voice multimedia and cloud computing.
Software maker Microsoft Corp is selling about 1,500 of its patents to Chinese device maker Xiaomi, a rare departure for the U.S. company and part of what the two companies say is the start of a long-term partnership.

The deal, announced on Wednesday, also includes a patent cross-licensing arrangement and a commitment by Xiaomi to install copies of Microsoft software, including Office and Skype, on its phones and tablets.

Both companies declined to discuss financial terms of the deal.

"This is a very big collaboration agreement between the two companies," Wang Xiang, senior vice president at Xiaomi, said by telephone ahead of the deal.

Advertisement

Analysts said Xiaomi's ambitions to be a major player outside China were hampered by weak patent protection and a fear of a prolonged legal battle.

Advertisement

"This deal might just give them enough of a patent trove to move to Western markets," said Sameer Singh, a UK-based analyst. "Their position in China has been under constant attack from even lower-end Android vendors, so moving overseas is now a necessity."

Shipments of Xiaomi phones fell 9 percent year-on-year in China in the first quarter, according to Strategy Analytics, and its market share dipped to 12 percent from 13 percent, squeezed not only by Huawei and Samsung Electronics but also smaller contenders including Oppo and Vivo.

Advertisement

Wang said the acquisition of Microsoft patents, which included voice communications, multimedia and cloud computing, on top of some 3,700 patents the Chinese company filed last year, were "an important step forwards to support our expansion internationally."

Xiaomi launched its first US device earlier this month, a TV set-top box it developed in cooperation with Alphabet Inc's Google, which owns the Android operating system it and most Xiaomi devices run on. Xiaomi has also launched a tablet which runs a version of Microsoft's Windows operating system.

Advertisement

Jonathan Tinter, corporate vice president at Microsoft, said the company was keen to tap into Xiaomi's young, affluent and educated users by having its products pre-installed on their devices. He declined to go into detail about the patent deals, but said the overall deal was something "we do only with a few strategic partners."

Microsoft has cut licensing deals with many Android device makers over the years, but has had less luck with Chinese manufacturers.

Florian Mueller, a patents expert who consulted for Microsoft in the past, said it was rare for Microsoft to actually sell its patents, adding "it's possible Microsoft found it easier to impose its Android patent tax on Xiaomi as part of a broader deal that also involved a transfer of patents."

© Thomson Reuters 2016

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Here's How Much the Samsung Galaxy Z TriFold May Cost in India
  2. iPhone 16 Price Drops Under Rs. 63,000 on Croma With Bank Discounts
  3. Motorola Edge 70 India Launch Date Leaked; Might Arrive With Bigger Battery
  4. OnePlus Ace 6T With Massive 8,300mAh Battery Launched at This Price
  5. Sony Launches ILCE-7V Full-Frame Mirrorless Camera With These Features
  6. Pranav Mohanlal's Horror Thriller 'Dies Irae' Streams on OTT Soon
  7. Poco C85 5G With a 6,000mAh Battery Will Launch in India on This Date
  1. Pariah OTT Release: Vikram Chatterjee’s Heart-Wrenching Stray Dog Thriller Set for OTT Debut
  2. Dies Irae OTT Release: When, Where to Watch Pranav Mohanlal's Malayalam Horror Thriller Online
  3. A Nearby Planet May Have Formed the Moon Following a Collision With Early Earth: Study
  4. Netflix’s Gritty Frontier Drama The Abandons to Begin Streaming Soon: All You Need to Know
  5. Superman OTT Release Date Announced: Everything You Need to Know About Clark Kent's Latest Adventure
  6. International Space Station Makes History As Eight Visiting Spacecraft Simultaneously Dock
  7. Dulquer Salmaan’s Kaantha Set for OTT Debut: When and Where to Watch 1950's Period Drama Online?
  8. Motorola Edge 70 India Launch Date Leaked; Indian Variant Said to Feature Bigger Battery, Slim Design
  9. SpaceX Adds 29 New Starlink Satellites in Successful Falcon 9 Launch
  10. UK to Recognise Crypto as Property After Lawmakers Approve Landmark Bill
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.