Posted January. 28, 2014 02:18,
Updated January. 01, 1970 09:00
Samsung Electronics, the worlds no.1 in IT hardware, will share all patents with the Internet giant Google for the next decade. The two IT giants will be able to share each others technologies.
Samsung Electronics said on Monday that it signed a global patent cross-licensing agreement with Google under which it will share its patents and future patents for the next 10 years.
The two companies have agreed to share patents in all areas basically, a Samsung Electronics sources said, adding, We have shared patents with many other global IT companies until now, but it is the first time that we share patents on a broad basis and over a long term like this deal.
The combined brand value of the two companies amounts up to 132.9 billion U.S. dollars. According to Interbrand, the world`s leading brand consultancy, Samsung Electronics has a brand value of 39.61 billion dollars and Google 93.29 billion dollars as of 2013.
The two companies decision to share patents is perceived as extraordinary since the global IT hardware and software leaders created a cooperative relationship, which allows each other to look into their current and future technologies in the market where competitors often get involved in patent wars.
Professor Lee Kyu-tae at Sogang University Graduate School of Management of Technology said, Amid more intensifying competition among IT companies, Samsung Electronics and Google are expected to seek a high level of co-existence during the contract period.
The deal is likely to affect the relationship between Samsung and Apple that are in litigations. Lee Chang-hoon, a patent lawyer at Aju Kim Chang & Lee, said, The alliance between Samsung Electronics and Google will put pressure on Apple at all rates. Apple will not be able to file lawsuits emotionally as it has done.