Microsoft, Funai Ink Patent Cross-Licensing Agreement

January 20, 2010

Microsoft has signed a patent cross-licensing agreement with Funai Electric, manufacturer of LCD TVs sold in the United States under brands such as Philips, Magnavox, Sylvania and Emerson, to further the development of each company’s current and future products. The agreement allows greater mutual access to each company’s respective patent portfolio.

The agreement covers consumer audio-video products including LCD TVs. Funai also will gain access to Microsoft’s Extended File Allocation Table (exFAT) patents. These patents cover many of the innovative ideas behind exFAT, a file system built to handle today’s rich and integrated media experiences. Although the contents of the agreement have not been disclosed, the parties indicated that Microsoft is being compensated by Funai.

Microsoft and Funai believe that this patent cross-licensing agreement will substantially benefit their customers.

“Consumers want TVs to offer experiences that were once available primarily on personal computers. A patent license like this one allows two industry leaders to deliver the type of cutting-edge innovations that today’s consumers demand,” said David Kaefer, general manager of Intellectual Property (IP) Licensing at Microsoft. “Our patent portfolio reflects the innovation that results from the billions of dollars of R&D Microsoft invests each year, and we are pleased to share access with an established leader such as Funai.”

“We are very pleased that this agreement enables us to incorporate Microsoft technology into our products, which will foster an even richer user experience for our customers,” said Kenji Sakata, officer of IP licensing at Funai.