Xiaomi and Microsoft announce “cross-license and patent transfer agreement”

Reuters has revealed in a recent report that Chinese smartphone manufacturer Xiaomi has acquired nearly 1,500 patents from US software giant Microsoft, as part of a new intellectual property (IP) deal between the two companies. The Microsoft patents purchased by Xiaomi are chiefly related to video, wireless and other technologies.

The deal has been characterized by Xiaomi and Microsoft as a "cross-license and patent transfer agreement."

The agreement with Microsoft will basically give Xiaomi the ability to preload its Android-powered smartphones and tablets with Microsoft's widely-used products like Office and Skype.

The Xiaomi devices preloaded with Microsoft's popular Word, Excel, PowerPoint, Outlook, and Skype applications are likely to hit the markets in September this year. According to Xiaomi, these devices will include the Mi 5, Mi Max, Mi 4s, Redmi Note 3 and Redmi 3.

In a joint statement announcing their new agreement, Xiaomi and Microsoft said that the deal has the potential to expand the availability of Microsoft Office apps to "tens of millions of customers and business customers in China, India and around the world."