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Microsoft Enters into Patent Licensing Agreement with Xiaomi

Xiaomi devices will now come pre loaded with Microsoft office and Skype. Software maker Microsoft Corp is selling about 1,500 of its patents to Chinese device maker Xiaomi, which the two company say is the start of long term partnership and is a rare departure for the U.S. company.

Microsoft

The deal, announced on Wednesday, also Software maker Microsoft Corp is selling about 1,500 of its patents to Chinese device maker Xiaomi, a rare departure for the U.S. company and part of what the two companies say is the start of a long-term partnership. On Wednesday a deal was announced which includes a patent cross-licensing arrangement and a promise by Xiaomi to install copies of Microsoft software, along with Office and Skype, on its phones and tablets .Both companies refused to discuss financial terms of the deal.

Before the deal,the senior vice president of Xiaomi  Wang Xiang said by telephone this is a very big collaboration agreement between the two companies. Analysts say that weak patent protection and a fear of a prolonged legal battle hampered Xiaomi’s ambitions of becoming a major player outside China. Also Sameer Singh, a UK-based analyst said that this deal might just give them enough of a patent trove to move to Western markets. Their position in China has been under constant attack from even lower-end Android vendors, so moving overseas is now a necessity. According to Strategy Analytics in the first quarter in China the shipments Shipments of Xiaomi phones fell almost 9 percent every year and its market share fell from 13 percent to 12 percent, and reduced the market share of not only Huawei and Samsung Electronics but also smaller competitors including Oppo and Vivo.

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