Amazon, Microsoft in Patent Cross-Licensing Deal

Microsoft and online retailer Amazon.com announced a sweeping patent cross-licensing deal that includes the technology behind the popular Kindle e-book reader. With this agreement, Microsoft has now signed over 600 such deals, most of which are intended to indemnify companies using Linux and open-source technologies that Microsoft says infringe on its patents.

"We are pleased to have entered into this patent license agreement with Amazon.com," said Microsoft Corporate Vice President Horacio Gutierrez. "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 deal protects Amazon from lawsuits related to the Kindle, which uses both open-source and proprietary software components, and Amazon's use of Linux-based servers in its server infrastructure. As such, Amazon will pay Microsoft an undisclosed sum.

Open-source advocates have long decried Microsoft's patent cross-licensing deals because they feel that the software giant is unfairly benefiting from dubious patent claims and holding the threat of legal action over companies, many of which could never afford to defend themselves in court. But with more than 600 agreements under its belt—many with leading technology firms such as Apple, LG, Novell, and Samsung—Microsoft is clearly offering a deal few can afford to refuse.

Some have refused, but so far none have been successful in standing up to Microsoft. For example, Microsoft sued GPS maker TomTom last year for violating eight of the software giant's patents, three of which were related to TomTom's use of Linux. TomTom paid to settle the case and agreed to remove technologies related to Microsoft's file management patents from its products