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WEEKLY NEWS - FEBRUARY 07, 2009

This article is part of MIP Week, a weekly email newsletter written by the editors of Managing IP magazine. Take a one week trial to Managing IP and find many more related articles.

Brother gains access to Microsoft's patent portfolio

Ryan Pasquale, New York

Microsoft and Brother Industries have signed a cross-licensing agreement that will allow each company to access parts of the other’s patent portfolio

Announced on Wednesday, the agreement aims to advance each company’s products. For Brother, this includes printers, multi-functional products, and systems operating on Linux software.

Microsoft will use the agreement to help refurbish its existing Windows and Office software lines, as well as other, unspecified, products. The complete details of the agreement have yet to be released.

This strategy of cooperation contrasts with the defensive IP positions many companies assume in a weakened economy. Historically, IP litigation has increased during recessions. But as R&D budgets dwindle globally, the cross-licensing model has emerged as a potential alternative to bolster existing and new product lines without the costs of independent research.

“We believe that intellectual property licensing is an empowering way to bring innovation to the IT ecosystem,” Microsoft’s David Kaefer said in a statement. Kaefer, the company’s general manager of intellectual property and licensing, went on to encourage the innovation achieved by a combination of open and closed source codes.

“Our partners and customers continue to demand greater collaboration as they run increasingly diverse IT environments using technology and solutions that rely on both proprietary and open source code,” he said.

Cross-licensing has allowed Microsoft to establish more than 500 similar agreements in the tech sector since 2003, when the programme began as a way of hedging the company’s research investments. In 2007, Microsoft reported an R&D budget of $7.1 billion.

The agreement with Brother is Microsoft’s latest attempt to further stamp its brand across the tech market. The company also opened its patent portfolio to camera maker Nikon in August 2008.

Other Microsoft cross-licensing partners include Fuji Xerox, HP and Samsung.



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