Is Microsoft Trying to Teach Linux a Lesson?

Microsoft has announced a new broad patent cross-licensing agreement with Olympus. Neither of the two companies disclosed the financial terms of their agreements. The only details made available by Microsoft were related to the fact that its patents will be implemented into technology going in digital cameras, digital imaging technologies and software, but not only, as additional consumer electronic products will benefit from Microsoft's intellectual property. Both parties emphasized the fact that digital imaging technologies will be the focus of the integration of Microsoft patents.

"This intellectual property licensing agreement is a collaboration that will foster innovation and ultimately benefit customers and consumers," said Horacio Gutierrez, vice president of Intellectual Property and Licensing at Microsoft. "We have an extensive global patent portfolio that can benefit companies that sell digital cameras, digital imaging technologies and consumer electronics products. Collaborating with industry leaders like Olympus enhances our ability, and theirs, to innovate and design newer exciting technologies that enrich the entire IT ecosystem."

"This cross-license agreement will enable Microsoft and Olympus to intensify the R&D efforts in digital imaging technologies," said Koji Koda, division manager of Intellectual Property and Licensing at Olympus. "The experience and patent portfolio that Microsoft and Olympus hold in the digital imaging technologies will make the collaboration even greater. This will benefit consumers long term and help drive industry growth."

Microsoft indeed is the possessor of an extensive patent portfolio. The Redmond company plans to pour no less than $7 billion into research and development efforts by the end of 2007. The figure is more than what the company spent on building its latest operating system, Windows Vista. But while Microsoft has in place a comprehensive system for patent licensing, it also takes numerous jabs at the members of the free and open source community. General Counsel Brad Smith together with Horacio Gutierrez, revealed earlier this year that free and open-source software violates no less than 235 Microsoft patents. And following the agreement with Novell from 2006, Microsoft turned to Red Hat for a similar deal covering intellectual property assurance. Chief Executive Officer Steve Ballmer recently stated that, as far as Microsoft was concerned, Red Hat customers owed the Redmond company for using open source products that infringe on its IP.