Google Inc, Verizon Ink Long-Term Patent Cross-License Deal

Updated on

Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Verizon Communications Inc. (NYSE:VZ) signed a long-term patent cross-license agreement that covers a wide range of products and technologies.

The search engine giant and the telecommunications company said the agreement would reduce the risk of future patent litigation. The deal essentially prevent Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Verizon Communications Inc. (NYSE:VZ) from taking legal action against each other over any of the patents owned or acquired by both companies under the patent cross-license agreement.

Gates Cap Management Reduces Risk After Rare Down Year

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy Read More

Google, Verizon open to discuss similar deal with other firms

Randal Milch, general counsel at Verizon Communications Inc. (NYSE:VZ) emphasized that the telecommunications company has “long championed patent reforms and industry actions that promote innovation.” Milch added that Verizon aims to reaching similar deals with other high-tech firms.

On the other hand, Kirk Dailey, head of patent transaction at Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) said the “cross license allows both companies to focus on delivering great products and services to consumers” worldwide.

According to Dailey, the search engine giant welcomes any company interested in discussing a similar patent cross-licensing deal.

Google’s previous patent cross-licensing deals

Earlier this year, search engine giant entered a 10-year patent-cross licensing agreements with Cisco Systems, Inc. (NASDAQ:CSCO) and Samsung Electronics Co. Ltd. (KRX:005930). Google also inked a patent cross-licensing deal with LG Electronics Inc. (KRX:066570).

The tech companies are members of the Coalition for Patent Fairness, a group dedicated to modernizing and strengthening the U.S. patent system to enhance innovation, job creation and competitiveness in the global market.

Google Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) was confronted with several patent lawsuits involving its services including the Android mobile operating system. In May, the search engine giant and Apple Inc. (NASDAQ:AAPL) agreed to drop all patent litigations against each other involving smartphones.

Google has been a strong lobbyist in Washington for patent reforms to limit patent trolls from acquiring large pools of intellectual property and filing lawsuits or threatening to sue other companies on allegations of infringements. Last October, Google’s former patent lawyer, Michelle Lee has been appointed to director of the U.S. Patent and Trademark Office (USPTO).

Subscribe to ValueWalk!

Get updates on the latest posts and more from ValueWalk straight to your inbox.