After signing patent licensing agreements with tech-savvy companies like HTC, Samsung and LG, Microsoft Corporation (NASDAQ:MSFT) has now struck a similar deal with Dell, thereby allowing the duo to mutually exchange their technologies and innovations.
An agreement has been signed in continuation of 30-year relationship between Dell and Microsoft, to empower consumers with a plethora of innovations. Both companies will now share technologies specifically related to Android, Chrome OS and Xbox.
Under the terms of the agreement, Dell will pay royalties to Microsoft for its sale of Android and Chrome OS devices. In return, Microsoft will provide patent protection by pushing Dell for consideration for Xbox consoles licensing. The move is presumably going to put Dell at an edge to utilize Microsoft’s Kinect motion sensing technology in its hardware. Both companies are likely to share a slice of Tech-share by exchanging their intellectual property.
Neil Hand, Vice President, End user computing products at Dell said in an interview, “The relationship between Dell and Microsoft continues to help Dell deliver choice and flexibility to customers looking for best technology to meet their needs.”
It’s conceivably a lucrative deal to rake in technology induced profits. In 2011, Dell had purportedly ended its Android experiments, a year later it came up with Chromebook that runs on Google’s Chrome OS.
Meanwhile, Microsoft has been anticipated to make more money from Android than from Windows. Back in 2011, Samsung and HTC were reportedly claimed to shell out $5 to $12 to Microsoft for every Android device sold. With the sale of Android driven handsets on a continuous rise, it would hardly come as a surprise if Microsoft’s revenue escalates in billions in the coming years.
In 2012, Microsoft was seen bragging how 70 percent of Android phones sold in the US were covered by one of its licensing agreements. Apart from Dell, Samsung, HTC and LG have long been roped in for cross patent licensing agreements with Microsoft.
Agreements like these potentially carry a lot of intellectually infused technologies in their basket. And with Microsoft leaving no stone unturned to strike a deal with almost every tech giant in the industry, its further rise seems inevitable.
Source: Microsoft Press