Microsoft and Samsung Announce Broad Patent Agreement

Agreement covers hardware and software products, including Linux, and is

expected to accelerate product development for both companies.

Apr 19, 2007, 01:00 ET from Microsoft Corp.

    REDMOND, Wash. and SEOUL, South Korea, April 19 /PRNewswire-FirstCall/
 -- Microsoft Corp. (Nasdaq:   MSFT) and Samsung Electronics Co. Ltd. today
 announced that the companies entered into a broad patent cross-licensing
 agreement. Samsung Electronics is the largest publisher of U.S. patents in
 2006 and owner of one of the largest U.S. patent portfolios. The companies
 expect the agreement to accelerate their respective product development
 efforts. Microsoft has actively sought patent agreements with a range of
 companies to build bridges with an array of consumer electronics,
 telecommunications, computer hardware, and Linux and UNIX platform
     (Logo: )
     Through the agreement, Samsung will obtain access to Microsoft(R)
 patents that may be practiced in a range of Samsung's existing and future
 product lines, such as computer products, set-top boxes, digital media
 players, camcorders, televisions, printers and home appliances. In these
 product lines, Samsung and its distributors and customers may utilize
 Microsoft's patents in Samsung's products with proprietary software, and
 Samsung will also obtain coverage from Microsoft for its customers' use of
 certain Linux-based products.
     Likewise, Microsoft will gain access to Samsung's large patent
 portfolio relating to digital media and computer-related inventions for its
 existing and future products. The specific financial terms of the agreement
 are confidential, but both parties will receive monetary payments
 compensating them for the value of their portfolios.
     "Offering customers elegant, highly desirable products requires
 advanced scientific research and design inspiration," said Shung Hyun
 (Peter) Cho, senior vice president of the Digital Media R&D Center at
 Samsung Electronics. "Patent collaboration agreements like this expand
 access to ideas and lead to even more desirable products for our
     "We are always looking for new opportunities to work collaboratively
 within the industry, and Samsung was a natural fit, particularly because of
 its leadership in the rapidly changing world of digital media
 technologies," said Horacio Gutierrez, vice president of Intellectual
 Property and Licensing at Microsoft. "Companies that collaborate are in the
 best position to deliver the products and service that their customers
     Today's announcement is the latest in a growing set of agreements that
 help build bridges across a range of computer hardware, software and
 telecommunications products from the world's leading companies. In the past
 12 months, Microsoft has announced similar agreements with companies such
 as Fuji Xerox Co. Ltd., NEC, Nortel, Novell Inc. and Seiko Epson Corp.
     About Samsung
     Samsung Electronics Co., Ltd. is a global leader in semiconductor,
 telecommunication, digital media and digital convergence technologies with
 2006 parent company sales of US$63.4 billion and net income of US$8.5
 billion. Employing approximately 138,000 people in 124 offices in 56
 countries, the company consists of five main business units: Digital Media
 Business, LCD Business, Semiconductor Business, Telecommunication Network
 Business, and Digital Appliance Business. Recognized as one of the fastest
 growing global brands, Samsung Electronics is a leading producer of digital
 TVs, memory chips, mobile phones and TFT-LCDs. For more information please
     About Microsoft
     Founded in 1975, Microsoft is the worldwide leader in software,
 services and solutions that help people and businesses realize their full
     NOTE: 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.