The unprecedented cooperation in patents between Samsung Electronics and Google is expected not only to create immediate marketing effects, but also to bring practical profits to the business of both companies in the long run. Some say that this alliance presented a constructive model of cooperation for the global IT industry stained with lawsuits.

◇ “It will ease the concern over the absence of Samsung Electronics platform.”

The deal between the two tech giants will ‘cover patents to be filed by both companies over the next 10 years.’ This clause particularly attracts public attention. The industry regards this clause as the strong bilateral will to maintain the alliance for at least 10 years.

In conclusion, this agreement enabled Samsung Electronics to remove the recent concern over the absence of a mobile platform. Samsung Electronics can stably concentrate on Android for at least 10 years, and bought time to prepare a new platform.

“Cross-licensing agreements are not announced on many occasions,” said an informant from the patent industry. “Samsung announced this agreement as part of its marketing strategy to ease Samsung’s platform-related jitters.” He added, “concerns over changes in Google’s Android strategies and delays in Tizen development caused Samsung Electronics to feel anxious, and this deal dispelled concerns in the market.”

◇Samsung-Google ‘win-win’

From the viewpoint of business, as they can utilize the strengths of each other, the agreement will bring benefits to both companies. The Korean tech giant will take advantage of Google’s Internet-related user interface (UI) patents or software patents to enhance its software competitiveness. Google secured the manufacturing competitiveness of Samsung Electronics. This cross-license is also meaningful in that the Android alliance has been further solidified.

“One of the reasons why Google did not start making smartphones in earnest after acquiring Motorola is perhaps that Samsung has many 4G LTE patents,” said Oh Se-il, the representative patent lawyer of Inventus. “As Samsung has many 4G communication patents, Google now can do business under a patent umbrella that is created by the cross-license and good for 10 years.” Mr. Oh said, “Google also makes wearable devices like Google Glass. The access to Samsung’s patents laid down the foundation for Google’s embarking on the hardware business in earnest in the future.”

◇ “A great boost in patent lawsuits”

It may not directly help Samsung Electronics in its patent lawsuits with Apple, but it is certain that Samsung Electronics now has a powerful ally. Samsung Electronics extended the patent license agreement with Nokia last November. Back in 2011, the company expanded its friendly forces by entering into cross-license agreements related to Microsoft (MS) and cell phone operating systems (OS).

To Samsung Electronics, the cross-license is effective in preventing a second Apple crisis that may occur at any time in the software sector. In the global IT industry where life-or-death patent lawsuits are rampant, Samsung and Google set a good precedent for comprehensive cooperation in patents. It will also help them improve their corporate images.
 
 
 
  Extracted from The Electronic Times