Microsoft Inks Patent Licensing Deal With Motorola Solutions

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Microsoft Corporation (NASDAQ:MSFT) entered a patent licensing agreement with Motorola Solutions, Inc (NYSE:MSI) that would allow the use of its intellectual property for devices powered by Android and Chrome operating systems of Google Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).

The software giant started its intellectual property licensing program in 2003. Since then, Microsoft Corporation (NASDAQ:MSFT) entered over 1,100 licensing agreements. The company implemented the program to allow access to its intellectual property portfolio and investments in research and development.

Microsoft prefers licensing over litigation

In a statement, Nick Psyhogeos, associate general counsel of intellectual properties licensing at Microsoft Corporation (NASDAQ:MSFT) explained that the software giant “prefers licensing” to  litigation.  According to him, “Licensing is a more effective way to share technology and accelerate the pace of innovation.”

On the other hand, Joe White, vice president of enterprise mobile computing at Motorola Solutions, Inc (NYSE:MSI) said, “Our Motorola Solutions communications technology works best for everyone when it is backed with robust intellectual property and patents. We are pleased to have agreed upon a solution that allows our customers to purchase Android products from Motorola Solutions with confidence.”

Other Android manufacturer patent licensing agreements

Microsoft Corporation (NASDAQ:MSFT) also has licensing agreements for other Android device manufacturers including Samsung Electronics Co. Ltd (LON:BC94) (KRX:005935), HTC Corp (TPE:2498), LG Electronics Inc. (KRX:066570), ZTE Corporation (SHE:000063), Acer Incorporated (TPE:2353), and Barnes & Noble, Inc. (NYSE:BKS).

Motorola Solutions agrees to sell scanner business

Separately, Motorola Solutions, Inc (NYSE:MSI) recently entered inyo an agreement to sell its enterprise business unit to Zebra Technologies Corp. (NASDAQ:ZBRA) for $3.45 billion in cash.

In a statement, Motorola Solutions chairman and CEO Greg Brown said, “This transaction will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers. Upon closing of the transaction, we intend to return the proceeds to our shareholders in a timely fashion.”

On the other hand, Anders Gustafsson, CEO of Zebra Technologies Corp (NADAQ:ZBRA) said the acquisition will transform the company into a leading provider of solutions with greater intelligence and insights to its customers enterprises and extended value chains.

“The Enterprise business will generate significant value for our shareholders by driving further product innovation and deeper engagement with our customers and partners. It positions Zebra as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing,” added Gustafsson.

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