http://www.microsoft.com/en-us/news/Press/2013/Apr13/04-16FoxconnPR.aspx
So this past tuesday, Microsoft and Foxconn's parent company Hon Hai signed a license agreement. What this agreement does allows for use of Microsoft's patent portfolio for devices running the Android and Chrome OS (i.e. smartphones, tablets, TV, etc). Hon Hai will be paying royalties to Microsoft.Hon Hai is currently the world's largest contract manufacturer. Hon Hai itself holds more thatn 54,0000 patents worldwide.
To me, this agreement seems more like an acquisition of a company into Microsoft. Microsoft has gained the largest manufacturing company, meaning that that they could be soon producing a lot more Windows phones and distributing worldwide, their 'global reach'. Microsoft has many patents, and now have captured a super giant patent holder in a licensing contract. This is not to say that Hon Hai will only work with Microsoft. Instead, Hon Hai has now agreed to manufacturer Microsoft devices. Since it's the largest manufacturer, I have a feeling that Microsoft has big plans for their market and are prepping to deploy a new device. I am interested to see how this plays out
I agree with you that with the agreement between Microsoft and Hon Hai, Microsoft has gained a significant competitive advantage for the future. I hope to see more innovations come out from Microsoft. I feel like Microsoft will also take the advantage of this agreement and create more lawsuits against other companies. I think it's a win-win situation for both Hon Hai and Microsoft. Hon Hai will gain the global image from Microsoft.
ReplyDeleteMicrosoft is representing the best business model in the tech market currently in my opinion. First with its pledge for complete transparency and constant push for licenses and collaborations versus litigation suits definitely makes me respect the company more.
ReplyDeleteMicrosoft wins again with their patent portfolio. They are pretty respectable when it comes to settling, but this is because they have the power to do so.
ReplyDeleteMicrosoft is really respectable in my opinion, and to sign this is to sort of save yourself from getting attacked later on, which is good in my opinion!
ReplyDeleteApple recently signed a similar license agreement with a Japanese company Microsoft did years ago. It seems like Microsoft is definitely setting a model that other companies should follow.
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