Dell, Microsoft Sign Cross-License Patent for Android

Dell and Microsoft (MSFT) have signed a patent cross-licensing agreement in which Dell will pay Microsoft royalties on products based on Chrome OS and Android in return for patent protection.

As part of the “friends with benefits” type deal, Dell will license back certain undisclosed intellectual property having to do with the Xbox game console, according to Microsoft. The agreement is similar to several other patent cross licenses Microsoft has entered into in the past years, including deals will Samsung, Acer, Foxconn, ViewSonic, and others, according to IT News.

"Our agreement with Dell shows what can be accomplished when companies share intellectual property," said Horacio Gutierrez, corporate vice president and deputy general counsel of the Innovation and Intellectual Property Group at Microsoft, in a prepared statement. "We have been partnering with technology manufacturers and vendors for many years to craft licensing deals, instead of litigation strategies."

While representatives from both companies seemed nonplussed by the deal, IT News says that it is significant in that it signals Dell’s decreasing reliance on Microsoft as the Windows giant begins to enforce its patent rights. Dell, which has not been a player in the tablet space for some time, seems to be looking to shake up the market with several new devices, including a new Venue tablet lineup and Chromebook model.

“Today’s announcement builds on our history of collaborating to bring new technologies to market," said Neil Hand, vice president, End User Computing Products at Dell. "The relationship between Dell and Microsoft continues to help Dell deliver choice and flexibility to customers looking for the best technology to meet their needs.”

Android developer Google (GOOG) currently allows companies to use Chrome and Android as they please with no risk of indemnification. The company has not announced any plans to alter its stance on the matter, even with Microsoft challenging the company to do so in 2011. It is unknown how the cross-licensing deal will effect other OEMs that also choose to utilize the Android and Chrome operating systems.