Microsoft and LG Electronics Announce Broad Patent-Licensing Agreement

Agreement will cover intellectual property contained in hardware and

software products, including Linux.

Jun 06, 2007, 01:00 ET from Microsoft Corp.

    REDMOND, Wash., and SEOUL, South Korea, June 6 /PRNewswire-FirstCall/
 -- Microsoft Corp. and LG Electronics (LGE) today announced that they have
 entered into a patent cross-license agreement to further the development of
 the companies' current and future product lines. Microsoft has focused on
 patent agreements in the recent past to develop a best-practices model for
 protecting intellectual property (IP) and respecting the IP rights of
 others, as well as building bridges with an array of industry leaders,
 including consumer electronics, telecommunications and computer hardware
     Through the agreement, LGE will be able to use Microsoft(R)-patented
 innovations in its products, including Linux-based embedded devices.
 Microsoft will have access to LGE's patents and will license other patents
 developed by LGE that are now owned by business solutions provider
 MicroConnect Group. The specific financial terms of the agreement are
 confidential, but the parties are disclosing that Microsoft will be making
 a net balancing payment to LGE and MicroConnect for patents related to
 operating systems and computer systems. LGE will be making ongoing payments
 to Microsoft for the value of Microsoft patents as they relate to
 Linux-based embedded devices that LGE produces.
     "This agreement and our good relationship with Microsoft enable LGE to
 provide improved telecommunications solutions to our customers," said Jeong
 Hwan Lee, executive vice president of the Intellectual Property Center at
 LGE. "We believe that the license arrangement with Microsoft provides
 appropriate recognition of the value of LGE's computer system-related
 patents, which includes patents directed to computer architecture utilized
 in game consoles and other products. We believe in the importance of
 respecting the IP rights of others and that patent collaboration and
 protection is a best business practice the whole industry should be engaged
     "MicroConnect is pleased to be able to make a contribution to the
 strengthened IP relationship between LGE and Microsoft," said Alan
 Loudermilk, founding partner of MicroConnect.
     "This agreement is another example of how Microsoft is continuing to
 build bridges with others in the industry through intellectual property
 licensing," said Horacio Gutierrez, vice president, Intellectual Property
 and Licensing at Microsoft. "We are pleased to be working with an industry
 leader and partner like LGE to meet our mutual business goals and customer
     In the past 12 months, Microsoft has announced similar agreements with
 companies such as Fuji Xerox Co. Ltd., NEC Corp., Nortel Networks, Novell
 Inc., Samsung and Seiko Epson Corp. to help build bridges between the
 world's leading computer hardware, software and telecommunications
 solutions providers.
     About LG Electronics, Inc.
     LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology
 innovator in consumer electronics, home appliances and mobile
 communications, employing more than 82,000 people working in over 110
 operations including 81 subsidiaries around the world. Comprising four
 business units -- Mobile Communications, Digital Appliance, Digital Display
 and Digital Media with 2006 global sales of US $38.5 billion -- LG
 Electronics is the world's largest producer of CDMA handsets, air
 conditioners, optical storage products, DVD players. For more information,
 please visit
     LG Electronics Digital Media Company is a leading producer of DVD
 players and home theater systems. It has been the world's best-selling
 optical storage maker for 9 consecutive years. The company provides
 digitally integrated products such as audio-video systems, car
 infotainment, optical storage products, notebook PCs, and PDAs, and is
 focusing on next-generation businesses.
     About Microsoft
     Founded in 1975, Microsoft (Nasdaq:   MSFT) is the worldwide leader in
 software, services and solutions that help people and businesses realize
 their full potential.
     Microsoft is a trademark of the Microsoft group of companies.
     The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.

SOURCE Microsoft Corp.