Patent Licences

Over the last few weeks Microsoft has granted a patent licence to LG Electronics covering the use of Android and Chrome OS tablets and mobile phones. This is a good example of the value of Intellectual Property rights and how they can be exploited in the Information Technology market.

How does it work?

A licence agreement is agreed between the parties which deals not only with the rights to be licensed but also with the exact nature of the licence, how royalties are payable and any other conditions.

In this case LG benefit by receiving coverage under Microsoft’s patent portfolio and Microsoft benefit by receiving an income from each and every sale of an LG mobile device that runs the Android or Chrome OS platform. Microsoft currently makes $3.5 million – $10.5 million every day from Android and Chrome operated phones.

So profitable is the licencing of its IP that Microsoft has now entered into more than 1,100 licencing agreements.

Although happy, under certain terms, to grant a licence over its patent portfolio, Microsoft has no problem litigating against manufactures who have not signed up on a licencing agreement and agreed to their terms. One such example of this is its on going lawsuits against Motorola who currently do not pay a royalty for the privilege of making smart phone devices using the Android or Chrome platform.

Myers Lister Price Intellectual Property Team specialise not only in protecting intellectual property but also maximising its value through the use of licences and agreements. If you would like to investigate the option of licencing you intellectual property then our Intellectual Property team would be happy to discuss this with you. Please contact Myers Lister Price on 0845 0738 445 or