Microsoft swaps patents with Fuji Xerox

Microsoft said late on Wednesday that it has inked a patent swap deal with Fuji Xerox that paves the way for the companies to use each other's technology.

The companies did not disclose financial terms of the agreement except to say that money will change hands. Microsoft said funds will flow in both directions but it declined to say which way it expects the balance to tilt.

The deal is the latest in a series of such cross-licensing deals for Microsoft, which has worked in recent years to both file more patents and to more aggressively license its technology.

Microsoft touted a similar deal with Seiko Epson in November and also announced one with NEC last May.

The companies said Fuji Xerox will obtain access to Microsoft patents to use in products that include both proprietary and open source software, such as Linux. Last November, Microsoft signed a deal with Novell that guaranteed that it would not sue Novell, or those who use its Linux distribution, for patent infringement.

Fuji Xerox senior vice president Kiyoshi Saito said in a statement: "We are pleased to be able to reach a broad, mutually beneficial patent agreement with Microsoft that respects each company's patent portfolio, encourages greater interoperability, and provides valuable protection for the customers of each company's products and services."

Microsoft, meanwhile, will be able to use Fuji Xerox technology in Office and other products, it said.

Ina Fried writes for CNET News.com