Microsoft, Casio Ink Patent Agreement Over Linux

Software giant Microsoft Corp. and Casio (News - Alert) Computer Co. Ltd. have entered into a broad, multiyear patent cross-licensing deal. It is intended to provide Casio’s customers with patent coverage for their use of Linux in certain Casio devices.

Microsoft (News - Alert) said that this licensing agreement is an extension of the long-standing relationship between the two companies. According to Microsoft, Casio utilizes a wide variety of Microsoft software for its products, including its industrial handheld terminals and business information systems. Although, the details of the licensing agreement are confidential, the parties acknowledge that Microsoft is being compensated by Casio.

“We’re pleased to reach an agreement and to see continued recognition of the value of our patent portfolio, particularly as it relates to operating systems,” said Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property Group at Microsoft, in a statement.

This patent agreement is another example of the important role intellectual property (IP) plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 700 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft’s significant R&D investments and its growing, broad patent and IP portfolio.

Likewise, Microsoft has also been executing Android patent licensing deals with a number of tablet and smartphone makers, which includes names like Acer, HTC (News - Alert), and ViewSonic.

The Inquirer calls it a legal protection racket, which seems to be working for giants like Microsoft, however, as companies apparently prefer to pay rather than risk going to court.