Microsoft Jumps in the Driver Seat with Pioneer

Pioneer is the latest addition on Microsoft's collection of Intellectual Property partners. The two companies announced on September 16, 2008 a cross-licensing patent agreement focused on consumer technology. In the past year, the Redmond giant signed similar partnerships with Kenwood and Alpine Electronics, and Pioneer is simply the latest manufacturer of auto navigation products to jump aboard Microsoft's patent cross-licensing agreements wagon. However, the alliance also spans to encompass television products and the Redmond company's software solutions.

“These types of agreements extend collaboration and innovation in the automotive field by allowing us to help our partners deliver groundbreaking in-vehicle technologies and product enhancements,” revealed Velle Kolde, senior product manager, Microsoft’s Automotive Business Unit.

Neither of the two companies wished to make the details of their agreement public, especially the financial terms, but Microsoft indicated that it is to receive compensation from Pioneer. Still, both Microsoft and Pioneer will be able to tap each other’s patent portfolios in order to develop and include new technologies into their products. Intellectual Property is one of the strongest assets of the Redmond giant, and has been labeled as such. Back in January 2008, Microsoft's patent portfolio was at the very top of both the Institute of Electrical and Electronic Engineers' November 2007 issue of IEEE Spectrum, as well as in Patent Board's January 2008 Scorecard for the Information Technology.

“Industry collaboration through intellectual property licensing fosters innovation that benefits the customer, the consumer and the overall IT ecosystem. We are proud of our innovations and the quality of our comprehensive global patent portfolio. This agreement will help bring new and exciting technologies to customers who have learned to expect high-quality technology from Microsoft and Pioneer,” explained Horacio Gutierrez, vice president of intellectual property (IP) and licensing at Microsoft.