LG will be allowed to use Microsoft's patented innovations, including Linux-based embedded devices, and Microsoft will have access to LG's current patents and will license other products developed in future.
"This agreement and our good relationship with Microsoft enables LG to provide improved telecommunications solutions to our customers," said Jeong Hwan-lee, executive vice president of LG's intellectual property center.
The agreement is also a must for Microsoft, because it is thinking of expanding its home networking systems in the next few years, and LG is already a proved specialist in that sphere.
Product patents developed by LG are now owned by MicroConnect Group. LG is the world's largest provider of handsets, air conditioners, optical storage products and DVD players. It's sales during last year was about 38.5 billion dollars. The contract will Microsoft will probably improve LG's shares.
LG has about 82,000 employees over the world working in 110 operations, 81 subsidiaries.
Microsoft already exists in similar agreements with other companies such as Novell, Samsung, NEC, Fuji-Xerox, Seiko-Epson and Nortel. It is building bridges with other technology professional, because consumers want devices work together, even if they are from different vendors.
Microsoft's contracts with major technology manufacturers will make the consumers prefer technology that has patent licensing agreement with Microsoft, because the products released under these agreements will work better with other devices, and there will be no fear to be sued by the major technology giant for patent violation. By Ruzan Harutyunyan for HULIQ
