Xiaomi, who is aiming to include its global spurs, announced on Wednesday that they have bought 1500 patents from Microsoft, which covers not only video and wireless communication, but also cloud and multimedia technology.
The deal was a part of a wider partnership with the Washington based software firm. Under this deal, Skype and Microsoft Office will come pre - installed on the devices of the Chinese electronics company, reported CDA News.
Xiaomi has been quite successful in China and other developing markets as the company is known to offer feature - packed smartphones in affordable price range. However, it is still unclear if Microsoft has already sold Android - related patents to Xiaomi.
"I'm assuming that Microsoft would want to keep its Android patents, and thus probably wouldn't sell those," said Bryan Ma, vice president for devices research at IDC, according to Computer World.
"Either way, Xiaomi was trying to build up its patent portfolio, particularly to help it in its overseas efforts, so this sounds like it gives them a nice boost," Ma said.
Notably, this move from Xiaomi comes after the company faced a patent infringement lawsuit in India from Ericsson, according to NH Voice. However, the Chinese tech tycoon has been quite successful in increasing its market share in India, and stands second after Samsung, the Korean company.
Announcing the deal on Twitter, Hugo Barra, vice president for Xiaomi's global division said, "Expanding the Xiaomi-Microsoft partnership: new deal for Office & Skype pre-install, IP cross-license and patent transfer agreement."
Xiaomi presently holds 4.4 percent market share in the global smartphone market, and ranks fifth, according to present market data. However, in China, Xiaomi has maintained its leadership but is presently facing tough challenges from Samsung, Vivo and Oppo.
Thus, the present deal can definitely help Xiaomi gain the proper exposure in the global market, as well as maintain its position in the local ones.
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