Microsoft plans to sell a portion of its patents to Xiaomi, beginning a potentially lucrative partnership for both companies.
(CCM) — On Wednesday, U.S. software creator Microsoft and Chinese device maker Xiaomi announced the beginning of, what they are calling, a "long-term partnership." Reuters reports that Microsoft will sell to Xiaomi 1,500 of its exclusive patents —which include voice communications, cloud computing, and multimedia— as well as enter into a cross-licensing agreement with Xiaomi. Xiaomi has also agreed to include Microsoft software, including Office and Skype, on its new devices. Some analysts say that this collaboration could be the key to Xiaomi's success in Western markets following a period of faltering phone sales in China. For Microsoft, a company that very rarely involves itself in this sort of partnership, the benefit lies in the ability to reach Xiaomi's young, affluent, and educated user base. Neither company has commented on the financial details of the deal.
This is only one of many overhauls being put into place by Microsoft at the moment. On Monday, the company announced that it would be rebranding Microsoft Ventures as an early-stage investment group. The Developer Evangelism team, which owns the project formerly known as Ventures, will now be in charge of Microsoft Accelerator. Microsoft Ventures aims to increase Microsoft's involvement with startups in the cloud, security, and machine-learning markets during their developmental stages.
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