Microsoft-Google: They Sign a Peace Treaty
Microsoft-Google: After five years of intellectual property and patent wars, Google and Microsoft announced they were settling all of their mutual lawsuits, and issued a joint statement. In this document they declared that both the companies are pleased to announce an agreement on patent issues. They dismissed all pending patent infringement litigation between them. The two technology powers now plan to collaborate on certain patent matters. Microsoft and Google anticipate working together in other areas in the future, however, they didn’t mention the financial terms of their agreement.
The most important case between them exploded in 2011, after Google had acquired Motorola Mobility, a major Android smartphone vendor, and its patents. In return fire, Motorola Mobility demanded Xbox patent royalties. Later, in 2014, Google sold Motorola Mobility to Lenovo in 2014, but it kept Motorola’s patents, and the lawsuits that went with them.
The settlement between Microsoft and Google covers the video patents, the networking patents, and Android cases. Microsoft makes more than $3.4-billion a year from its Android patent licensing deals. These profits have made Android far more profitable for Microsoft than any other Microsoft native smartphone or tablet operating systems thus far.
Google and Microsoft have agreed to work together to create an open-source video file format that works with the HTML5 video tag. Together they will create an open-standard video codec VP9. Both the companies have agreed to work together against patent trolls in the European Union.
It is obvious that Microsoft and Google will continue to make products that compete directly with each other. That includes search engines and mobile computing devices.
This is not the first time smartphone heavyweights have settled their disputes. In 2014, Apple Inc. and Samsung Electronics Co Ltd agreed to drop all litigations against one another outside of the United States.
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