China: Xiaomi to buy 1500 patents from Microsoft

Xiaomi has sealed a deal to buy some 1,500 patents from Microsoft, a move that will help the Chinese smartphone maker expand exports and earn the US technology giant some badly needed goodwill in Beijing.

The transaction addresses a key weakness facing Xiaomi, which is seeking to sell its devices in countries outside its home market but has been hindered by its relative lack of intellectual property to fend off lawsuits.

“In terms of patents we are a young company,” Xiaomi said on Wednesday, adding that the Microsoft deal is “a big milestone for us. It will help us with operations in new markets.”

The agreement comes on the eve of a visit to Beijing by Microsoft chief executive Satya Nadella. The US company is still the subject of an antitrust investigation in China over bundling of software, with its offices raided by Chinese authorities in July 2014.

The patent deal includes Xiaomi installing Microsoft’s Office and Skype software on its phones. Financial terms were not made public.

Xiang Wang, senior vice-president, said Xiaomi was “excited” to be working with Microsoft and that the deal demonstrated the Chinese company “is looking to build sustainable, long-term partnerships with global technology leaders”.

Full Content: Financial Times

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