Microsoft sells Chinese company Xiaomi about 1,500 of its patents. This sale marks the beginning of a long-term partnership between the two companies. Analysts say that Microsoft rarely sells patents so observers were surprised by the fact of the selling.
Contract concluded between Microsoft and Xiaomi also includes a cross-licensing and provides a preset number of Microsoft solutions in Xiaomi devices (mainly talking about how to install Microsoft Office software and Skype on tablets and smartphones).
Many analysts say that Xiaomi ambition to actively promote outside China ran into problems with the patent protection - in the case of output on the western markets the Chinese vendor will inevitably face a long and expensive litigation.
Thus the patent transaction can have one main goal - to ensure the purity of Xiaomi to Western competitors.
At the same time in China Xiaomi positions are subject of constant attack from cheaper manufacturers of Android-devices, so this vendor needs access to international markets urgently. So in the first quarter of this year Xiaomi smartphone shipments in China, according to the company Strategy Analytics, decreased by 9%.
Last year Xiaomi company acquired 3,700 Microsoft patents.