Microsoft Extends Patent Licensing Agreement with ASUS

Software developer Microsoft CorporationMSFT broadened an earlier patent licensing contract with Taiwanese computer-maker Asustek Computer (ASUS).

The agreement will strengthen the relationship between the two companies. It consists of an expansive cross-license covering, including ASUS phones and tablets running on Google Inc.'s GOOGL Android operating system and Microsoft software, devices and services. It also comprises pre-installation of Microsoft Office productivity services on ASUS Android devices.

The agreement will also simplify technology sharing for the development of innovative and improved product solutions.

Asustek Computer Inc. was founded in 1989. Its vast product portfolio includes motherboards, graphics cards, optical drives, displays, desktop and all-in-one PCs, notebooks, netbooks, servers, multimedia devices, wireless solutions, networking devices, tablets, smartphones and wearables.

ASUS joins the list of over 20 other manufacturers including Samsung, LG, and Sony SNE that have entered into agreements with Microsoft to bundle Office apps on Android devices.

So the move clearly reflects Microsoft's cross-platform vision for delivering its services. It will make its services available worldwide and help to attract new users to its ecosystem. Moreover, it will help the software developer to keep Office competition away. We note that it has recently launched Office 2016. The move will accelerate the adoption of the new edition.

The largest software developer seems focused and optimistic about its cloud-first mobile-first strategy. Its cloud and mobile technologies are expected to be a major growth driver in the near future.

Microsoft currently has a Zacks Rank #3 (Hold). A better-ranked technology stock is Inc. STMP , sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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