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Microsoft and Amazon.com Sign Agreement posted on March 8, 2010

Microsoft Corp. announced Monday that it has signed a patent cross-license agreement with Amazon.com Inc. The agreement provides each company with access to the other's patent portfolio and covers a broad range of products and technology, including coverage for Amazon's popular e-reading device, Kindle(TM), which employs both open source and Amazon's proprietary software components, and Amazon's use of Linux-based servers. Although specific terms of the agreement are confidential, Microsoft indicated that Amazon.com will pay Microsoft an undisclosed amount of money under the agreement.

"We are pleased to have entered into this patent license agreement with Amazon.com," said Horacio Gutierrez, corporate vice president and deputy general counsel for Intellectual Property and Licensing at Microsoft. "Microsoft's patent portfolio is the largest and strongest in the software industry, and this agreement demonstrates our mutual respect for intellectual property as well as our ability to reach pragmatic solutions to IP issues regardless of whether proprietary or open source software is involved."

The licensing agreement is another example of the important role IP plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 600 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft's significant R&D investments and its growing, broad patent and IP portfolio. In recent years, Microsoft has entered into similar agreements with other leading companies, including Apple Inc., HP, LG Electronics, Nikon Corp., Novell Inc., HOYA CORPORATION PENTAX Imaging Systems Division, Pioneer Corp., Samsung Electronics Co. Ltd. and Fuji Xerox Co. Ltd.