Microsoft Corporation increases its patent portfolio by entering into another license agreement with Taiwanese company, Qisda Corporation. Microsoft Corporation launched on December 2003 its IP licensing program, and since then, has entered into 1,100 plus licensing agreements with various Original Device and Original Equipment manufacturers.
Microsoft Corporation may not be successful with its Windows Phone platform; and even its PC sales are declining. Though many users found WP well-designed and smart, though lacking in apps, it does not deliver sales as expected. However, with Microsoft’s less success with its WP and less mobile market share, revenue-wise, it has earnings from other devices as well. Through its profitable patent portfolio, the Windows OS maker makes money from the sales of Android devices, as well as that of Chromebooks. Now, Microsoft is expanding its patent portfolio with Qisda.
Some of the ODMs that signed up into Microsoft’s IP licensing program are Hon Hai, Wistron Corp., Pegatron Corp and Compal Electronics; and OEMs like Samsung Electronics, LG Electronics, HTC Corporation and ZTE Corporation. On April 24, Qisda Corporation signed up into the licensing program which provides broad coverage for Qisda and BenQ devices like tablets and smartphones that run Chrome and Android.
According to Microsoft Technology Licensing LLC VP and Executive Director Nick Psyhogeos, their agreement with Qisda demonstrates the power of accelerating innovation since it gives the Taiwanese OEM greater patent protection as it introduces new devices. It also indicates that Redmond has entered into licensing agreements with most of the top Taiwanese ODMs.
On the other hand, Qisda President Peter Chen said the licensing agreement they enter into provides them more freedom to innovate as they deliver exceptional products. He added that they as innovators of electronic products, recognize intellectual property values. The contents of the licensing agreement between Microsoft and Qisda are confidential, but it is made known that the former will earn royalties from Qisda.
Founded in 1984, Qisda is both an ODM and OEM, which provides electronic products for industrial, medical, consumer and commercial applications. Examples are LCD monitors, projectors, digital signages, scanners, multifunctional printers, medical gateways, smartphones, e-Reader and computer tablets. The company’s headquarters are in Taiwan (with manufacturing and R&D), while having an R&D center in China, as well global manufacturing outlets in Mexico and China.
Qisda is a manufacturing firm, but its designed capabilities are recognized internationally. It has been winning international awards for its design since 2002.
The revenue Microsoft gets from its commercial cloud is generating $6.3 billion annual sales. Microsoft Corporation CEO Satya Nadella said it is a big deal, as it is a long-term future after Windows era.
Windows 10 is coming out and promising. Nevertheless, with a big OEM in its patent portfolio, Microsoft Corporation is in for another success. It may not be so happy with WP and would love to see the upcoming launch of Windows 10 for phone to make it big, its patent portfolio is a guaranteed success on the side.
As Microsoft increases its patent portfolio through Qisda Corporation, it expands its revenue avenue as well. The company has been sending more cash to shareholders each year. It is a good payer of dividends, and presently yielding three percent in dividends.
By Judith Aparri
Photo courtesy of Scott Mindeaux – Creativecommons Flickr License