Microsoft Receives Licensing Fees for Linux Servers

Telecommunication software developer and service provider Amdocs announces entering a cross-patent licensing deal with Microsoft.

While no details were provided, the agreement allows Amdocs the continued use of Linux in its data centers in exchange for an "undisclosed" license fee that is paid to Microsoft. Amdocs is not a small fish - the company has more than 20,000 employees and annual sales of about $3 billion.

The licensing announcement is another example of Microsoft's repeated notes that Linux is violating up to 235 of the company's patents. In a public statement, Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft, said that “This agreement with Amdocs adds to the more than 1,100 patent license agreements Microsoft has entered into over the last decade.”

Patents are not just used for the use in technology anymore, but have become an immense source for revenue in such licensing deals that favors older, established companies with huge portfolios and substantial resources that can be poured into patent submissions and monetization.

“Microsoft’s licensing program ensures respect for its world-class intellectual property portfolio while at the same time making available to others the result of its multi-billion dollar annual investment in research and development,” Gutierrez said.

According to IFI Claims Patent Services, Microsoft ranks sixth in annual patent grants. The company was granted 2,311 new patents in 2011. Leading the charge is IBM with 6,180 new patents in 2011. According to the USPTO, Microsoft currently holds 30,126 patents in total.

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