A common motivation for a cross-licensing agreement is to abstain from limited funds for legal actions and counter-actions in the event of alleged patent infringement. Companies can negotiate an out-of-court settlement that allows them to exchange their intellectual property rights and value. Cross-licensing is not a means of exchanging and reducing legal or licensing fees. Instead, it should form the basis for long-term alliances that can foster the flow of knowledge and innovate after licensing. Apple Patent Licensing Director Boris Teksler said that the design patents at stake in the Samsung study were awarded to Microsoft, as reported by Reuters. But Microsoft can`t just build iPhone or iPad clones – that`s what Apple accuses Samsung with its various Android-based devices. “There was no right with respect to these design patents to build clones of any kind,” Teksler said, according to Reuters. A multi-licence patent contract is a contract between at least two parties, which grants reciprocal rights to the intellectual property of both parties. The agreement may be a private agreement between two companies or a small consortium of companies. Or it could be a public agreement, such as a patent pool, in which IP management is divided among a relatively large group of patent holders who share patents. Patent pools are generally industry-based and companies active in this sector can join the pool. For these reasons, it is generally considered unwise for a company to take its critical and critical technology patents in cross-licensing agreements. It is also possible to introduce clauses limiting direct competition between the two cross-licensing partners.

For example, in the Microsoft-Apple agreement mentioned above, there are anti-cloning provisions to protect against literal copying of products. If we engage more deeply in Apple-HTC-Cross`s patent licensing agreement, an analysis could better inform the decision to reach an agreement rather than pursue litigation in their entirety. SAN JOSE, Calif. — Apple`s patent license director said here today that a previous cross-licensing agreement allowed Microsoft to access a multitude of design patents and features, but banned copying Apple`s products. We were able to find the anti-cloning provisions in the original cross-licensing agreement between Microsoft and Apple in 1997. While there may be more recent agreements between the two companies, it is reasonable to assume that the specifics of such reproductive protection would be at least similar.