14 DAY TRIAL // Since IT companies always have to innovate if they are to stay in business, IBM and Samsung decided it was high time they signed a cross-license pact so that they may both use the other's patent portfolio.
License agreements are a common thing on the IT market, and there are even companies that deal exclusively in patent development.
IBM and Samsung are not among those, as they each have their respective, and extensive, lines of actual devices.
Still, their IP portfolios are significant, and they are about to merge into an even more massive conglomerate, as revealed by official announcements.
The two did not exactly give out any details, but the deal is supposed to let them maintain competitiveness while improving products and services.
"Patents and innovation are a critical component of IBM's high-value business strategy,” said Ken King, vice president of patents, software and services IP licensing for IBM.
“In addition to protecting the huge investment we make in R&D, patents also allow us establish cross-licenses, which provide IBM and partners like Samsung with significant freedom of action, which is essential in the competitive global business environment."
Considering that IBM and Samsung have been growing closer and closer over the past few years, this means of innovation may not be so unexpected.
"This licensing agreement will help both companies expedite innovation and achieve business growth by providing each company access to the other's patents for basic technologies," stated Dr. Seungho Ahn, Executive Vice President and Head of the IP Center, Samsung Electronics.
"We also hope the agreement will open new opportunities for wider collaboration between two of the leading innovators in the technology industry."
Overall, the patent portfolios of both companies cover various areas, like communications (visual and mobile), semiconductors, telecommunications and software and technology-based services. Time will tell if the move turns out to be as lucrative as the two parties hope.