Although both parties have kept the details of their agreement confidential, Japan-based Seiko Epson (Epson) and Microsoft have revealed that both corporations will benefit from expanded mutual access to each other's patent portfolios. The cross-licensing agreement is an initiative that will reflect in the duo's products. In this context, both Epson and Microsoft aim to deliver increasingly cost-effective solutions. Microsoft has a long tradition in establishing cross-licensing collaborations, Epson is just the latest addition to such companies as Cisco Systems Inc., NEC Corp., Nortel Networks, Siemens AG, SAP AG and Toshiba.

"With this agreement we can share technologies that each company has invested in and bring the resulting success to the marketplace," said Masataka Kamiyanagi, executive officer of Epson's Intellectual Property Division. "We expect to expand our mutual relations in order to protect our intellectual properties on a global level, especially against counterfeit problems."

"Epson is an important industry ally for us, and by sharing our intellectual property we can extend the reach of our respective innovations to our mutual customers," said Marshall Phelps, corporate vice president and deputy general counsel for Microsoft. "Intellectual property licensing is a cornerstone of today's software industry and essential for the development of comprehensive technology solutions."