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22 February 2013Patents

Microsoft and Nikon strike Android deal

Microsoft signed a deal on Thursday to license some of its Android patents to camera-maker Nikon.

Details of the deal are confidential but a Microsoft statement said the agreement covers “certain Nikon cameras running the Android platform” and that it will receive royalties from the Japanese company.

Microsoft’s general manager of IP licensing, David Kaefer, said the companies had a long history of collaboration and were committed to responsible licensing.

Rodney Sweetland, partner at Duane Morris, said the deal was unexpected, given that Microsoft and Nikon are not direct competitors, but that such deals are quite common and aren’t as widely reported as those between direct rivals.

He added: “I would think the royalty payment would be very low in this case – either a single digit percentage or a fraction of a percentage. Even a three to five percentage royalty would be astronomical for Nikon, and it would be unlikely to pay.”

He said the deal was good for Nikon, which would be unlikely to afford patent litigation and wants the freedom to operate in the market, adding that Microsoft now has more control to monetise its patent portfolio.

He said: “The lesson is: it’s always smart to license and settle out of court. When you use infringing patents, you could be subject to claims of wilful infringement. A lawsuit could strike at any moment.”

Microsoft has run a licensing programme since 2003, signing more than 1,100 agreements in that time. The company has pledged to publish full details about its patent portfolio on the Internet by April 1, 2013. In a blog post on technet.com, Microsoft general counsel Brad Smith said: “With transparency, we can help bring additional sunlight to the patent system.”

Google-owned Android is open source software, which explains why Microsoft has patents incorporating the technology. The operating system is best-known for powering smartphones and tablets but also runs on laptops and cameras.

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