Samsung, Google Ink 10-year Global Patent Cross-licensing Agreement

(RTTNews) - South Korean conglomerate Samsung Electronics Co. Ltd. (SSNLF) announced Sunday that it has struck a global patent license agreement with Internet search giant Google, Inc. (GOOG). The licensing deal will give access to each other's industry-leading patent portfolios and help power future innovation by the two companies through the enhanced cooperation.

"We're pleased to enter into a cross-license with our partner Samsung. By working together on agreements like this, companies can reduce the potential for litigation and focus instead on innovation," said Allen Lo, Deputy General Counsel for Patents at Google.

The cross-license agreement covers a broad range of patents of the two companies' that are existing as well as those to be filed over the next 10 years. The patents involved cover a broad range of technologies and business areas that are mutually beneficial to the two companies.

With Samsung already being involved in bitter court battles over patent violations with Apple, Inc. (AAPL), this deal will ensure that Google and Samsung do not end on the two sides of a lawsuit over patents.

The deal will see Google continuing to encash on the large patent portfolio it gained through the $12.5 billion acquisition of Motorola Mobility.

"This agreement with Google is highly significant for the technology industry. Samsung and Google are showing the rest of the industry that there is more to gain from cooperating than engaging in unnecessary patent disputes," said Dr. Seungho Ahn, the Head of Samsung's Intellectual Property Center.

The agreement comes at a time when technology companies are vying with each other to garner maximum number of patents so as to generate revenues by licensing them or suing each other.

GOOG closed Friday's regular trading session at $1,123.83, down $36.27 or 3.13% on a volume of 3.93 million shares.