Microsoft Corp. announced several steps to strengthen the intellectual property (IP) protection it provides to PC manufacturers, including its larger original equipment manufacturer (OEM) and smaller OEM System Builder partners, OEM distributors, and independent software vendor (ISV) Royalty partners. Collectively, these partners account for more than $18 billion of Microsoft’s annual software revenue. The IP protection provided by Microsoft, commonly referred to as indemnification, helps shield partner companies from exposure to legal costs and damage claims related to patent or other intellectual property disputes.
“This is a part of our ongoing efforts to respond to the requests of customers and partners. Our partners are telling us that IP issues are becoming increasingly complex, and they appreciate that Microsoft stands behind them and our products,” said Brad Smith, senior vice president and general counsel at Microsoft. “We’re proud of our strong IP indemnification, and we encourage our partners and end users to ask their IT vendors about the
level of protection they provide for their products.”
High-profile cases have brought greater industry awareness to the importance of IP management. When IP disputes do arise, it is all too common for a technology company’s channel partners to be pursued for the alleged IP violations. Microsoft’s willingness to help protect Gateway Inc. when Lucent Technologies filed a patent suit against its use of Microsoft(R) software is one such example of the complex and real nature of IP issues in the industry today. Channel partners are looking for vendors that are willing to stand behind their products and help protect them from these kinds of risks.
With today’s announcement, Microsoft is signaling that its OEM partners, OEM System Builders, OEM distributors and ISV Royalty partners will receive enhanced coverage with Microsoft’s industry-leading indemnification offering. The enhanced indemnification includes protection for the four forms of disputes commonly associated with software: patent, copyright, trade secret and trademark. The coverage extends to current and future versions of software, such as the Windows Server System(TM) (including Microsoft SQL Server(TM) and Microsoft Exchange Server), Microsoft Office System, and Windows(R) client software.
Additional information on Microsoft’s expanded IP protection offering can be found on Microsoft’s Get the Facts Web site.