In a move aimed at providing a "security blanket" for developers of embedded systems, Microsoft Corp. announced recently it would offer intellectual property indemnification to users of Windows Embedded and Windows Mobile software.
The announcement, which came while the embedded industry was still buzzing over the $613 million settlement in the Blackberry lawsuit case, extends the same protection to mobile and embedded device makers that the software giant had previously given to partners in its other Windows platforms. As a result, makers of handheld e-mail devices, point-of-sale systems, mobile phones and a host of other embedded products will now have legal protection against infringement claims involving Microsoft software.
"Everyone is concerned about intellectual property issues right now," notes Rob Enderle, industry analyst and founder of The Enderle Group. "This gives them a security blanket. If someone is going to sue, they may think twice about going up against Microsoft."
Microsoft's protection for embedded developers includes defense of OEMs and distributors against intellectual property claims in every country in which Microsoft distributes. The company said it would protect against patent, copyright, trademark and trade secret claims, and would remove any monetary caps related to defense costs.
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Handheld devices employing an embedded Microsoft operating system, such as Symbol’s mobile computers, will receive IP legal protection from Microsoft.
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The move is seen as especially important for smaller manufacturers, especially in light of the recently-settled Blackberry case. There, a patent-holding firm alleged infringement on multiple patents by Research In Motion (RIM), maker of the Blackberry mobile e-mail devices. According to news sources, Research in Motion settled the case because of fears that a judge would turn off service to some 3 million Blackberrys while the lawsuit dragged on. The legal action also had implications for other, smaller firms connected to RIM.
"A lot of businesses have constricted resources and thin-line margins," notes Bart Eppenauer, chief patent counsel for Microsoft. "An IP-infringement action could mean the difference between success and failure for those businesses."
"When you put an OS on a device, you never know what other IP is out there and who can come after you," adds Brian Viscount, vice president of product marketing for Symbol Technologies, a maker of mobile computing, voice recognition and RFID systems.
Microsoft says it will support partners in infringement cases involving the OS, interconnect layer, device drivers and other associated parts.
Analysts add that Microsoft's announcement serves as a way for the company to distinguish itself from open-source competitors, such as Wind River Systems and Red Hat. Those companies, being smaller, would be less likely to scare potential litigants, they say.
"The goal is to avoid litigation," Enderle concludes. "And Microsoft is a scary company to sue."