Microsoft Strengthens Intellectual Property Protections for Partners - News Center
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`Microsoft Strengthens
`Intellectual Property Protections
`for Partners
`June 22, 2005 |
`
`REDMOND, Wash. — June 22, 2005 — Microsoft Corp.
`today announced several steps to strengthen the
`intellectual property (IP) protection it provides to PC
`manufacturers, including its larger original equipment
`manufacturer (OEM) and smaller OEM System Builder
`partners, OEM distributors, and independent software
`vendor (ISV) Royalty partners. Collectively, these
`partners account for more than $18 billion of Microsoft’s
`annual software revenue. The IP protection provided by
`Microsoft, commonly referred to as indemnification,
`helps shield partner companies from exposure to legal
`costs and damage claims related to patent or other
`intellectual property disputes.
`
`“This is a part of our ongoing efforts to respond to the
`requests of customers and partners. Our partners are
`telling us that IP issues are becoming increasingly
`complex, and they appreciate that Microsoft stands
`behind them and our products,” said Brad Smith, senior
`vice president and general counsel at Microsoft. “We’re
`proud of our strong IP indemnification, and we
`
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`Microsoft Strengthens Intellectual Property Protections for Partners - News Center
`
`Page 2 of 5
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`Microsoft Cloud
`strength highlights
`second quarter
`results
`
`High-profile cases have brought greater industry
`awareness to the importance of IP management. When
`IP disputes do arise, it is all too common for a
`technology company’s channel partners to be pursued
`for the alleged IP violations. Microsoft’s willingness to
`help protect Gateway Inc. when Lucent Technologies
`filed a patent suit against its use of Microsoft® software
`is one such example of the complex and real nature of IP
`issues in the industry today. Channel partners are
`looking for vendors that are willing to stand behind their
`products and help protect them from these kinds of
`risks.
`
`“By improving partner indemnification, Microsoft is once
`again maximizing its platform’s value for ISVs in a
`market where fear of litigation can critically impact
`innovation,” said Nabeel Youakim, area vice president of
`Microsoft Global Relationship at Citrix Systems Inc. “As
`the leading application developer of access
`infrastructure and secure access, we know that
`managing intellectual property is of prime concern to
`enterprises large and small. This extended
`indemnification program is another important way that
`working with Microsoft enables us to offer our products
`to the broadest market with the lowest risk.” 
`
`With today’s announcement, Microsoft is signaling that
`its OEM partners, OEM System Builders, OEM
`distributors and ISV Royalty partners will receive
`enhanced coverage with Microsoft’s industry-leading
`indemnification offering. The enhanced indemnification
`includes protection for the four forms of disputes
`commonly associated with software: patent, copyright,
`trade secret and trademark. The coverage extends to
`current and future versions of software, such as the
`Windows Server System™ (including Microsoft SQL
`Server™ and Microsoft Exchange Server), Microsoft
`Office System, and Windows® client software.
`
`“The market is changing and channel partners need to
`pay attention to what’s happening in the software
`industry in the area of intellectual property
`management,” said Stephen Graham, group vice
`
`https://news.microsoft.com/2005/06/22/microsoft-strengthens-intellectual-property-protec...
`
`10/31/2017
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`Microsoft Strengthens Intellectual Property Protections for Partners - News Center
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`Page 3 of 5
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`president of Global Software Business Strategies at IDC.
`“Even if a partner believes it is an unlikely litigation
`target, business disruption can still result from a legal
`dispute regarding a key supplier’s IP. To protect their
`own interests, partners should make sure they
`understand the
`
`degree of IP protection and the resources available to
`them from the vendor should an infringement issue
`arise.”
`
`“For some time, IP indemnification has been an
`important assurance Microsoft provides to its OEM
`partners,” said Andy Juang, CEO of Equus Computer
`Systems Inc. “Today’s announcement improves this
`existing coverage by removing financial caps.”
`
`Channel Partners Highlight Importance of
`Indemnification
`
`Microsoft continues to expand its IP protection based on
`customer and partner feedback. In 2003, the company
`removed monetary caps for volume licensees after
`learning that this was a top concern. In November 2004,
`Microsoft extended its IP protection for customers by
`taking coverage previously available only to volume
`licensees and making it available to end users.
`Microsoft’s ability to offer strong protection is bolstered
`by a commitment to managing the IP rights in its
`software. This commitment includes development
`process controls, inbound licensing of necessary third-
`party rights, cross-licensing agreements with other
`industry leaders, and protection of Microsoft innovations
`through patent and copyright.
`
`“Bell Micro is pleased to see that Microsoft is taking
`further steps in this area for system builders,” said Joe
`Cousins, vice president of Marketing at Bell
`Microproducts Inc. “Whether they realize it or not, this is
`an area of real concern for this channel and shows
`Microsoft’s strong desire to support the system builder
`community.”
`
`https://news.microsoft.com/2005/06/22/microsoft-strengthens-intellectual-property-protec...
`
`10/31/2017
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`

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`Microsoft Strengthens Intellectual Property Protections for Partners - News Center
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`Page 4 of 5
`
`Michael Schwab, vice president of Purchasing at D&H
`Distributing Co. Inc., said, “Intellectual property
`protection is a significant value in today’s litigious
`environment. Microsoft has shown its leadership once
`again in its support of the channel.”
`
` Additional information on Microsoft’s expanded IP
`protection offering can be found on Microsoft’s Get the
`Facts Web site, http://www.microsoft.com/getthefacts.
`
`Channel Partner Indemnification Quick Reference Table
`
`About Microsoft
`
`Founded in 1975, Microsoft (Nasdaq “MSFT”) is the
`worldwide leader in software, services and solutions that
`help people and businesses realize their full potential.
`
`Microsoft, Windows Server System and Windows are
`either registered trademarks or trademarks of Microsoft
`Corp. in the United States and/or other countries.
`
`The names of actual companies and products mentioned
`herein may be the trademarks of their respective owners.
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`Note to editors: If you are interested in viewing
`additional information on Microsoft, please visit the
`Microsoft Web page at
`http://www.microsoft.com/presspass on Microsoft’s
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`Response Team or other appropriate contacts listed at
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`
`https://news.microsoft.com/2005/06/22/microsoft-strengthens-intellectual-property-protec...
`
`10/31/2017
`
`

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`Microsoft Strengthens Intellectual Property Protections for Partners - News Center
`
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`https://news.microsoft.com/2005/06/22/microsoft-strengthens-intellectual-property-protec...
`
`10/31/2017
`
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