Microsoft and Salesforce.com Settle Patent Infringement Cases, Reach Patent Agreement

Microsoft Corp. announced today that it has settled the patent infringement cases brought by Microsoft before the U.S. District Court for the Western District of Washington and by Salesforce.com in the U.S. District Court of Delaware.

REDMOND, Wash. - Aug. 4, 2010 - Microsoft Corp. announced today that it has settled the patent infringement cases brought by Microsoft before the U.S. District Court for the Western District of Washington and by Salesforce.com in the U.S. District Court of Delaware.

The cases have been settled through a patent agreement in which Salesforce.com will receive broad coverage under Microsoft's patent portfolio for its products and services as well as its back-end server infrastructure during the term. Also as part of the agreement, Microsoft receives coverage under Salesforce.com's patent portfolio for Microsoft's products and services.

Although the contents of the agreement have not been disclosed, Microsoft indicated that it is being compensated by Salesforce.com based on the strength of Microsoft's leading patent portfolio in the areas of operating systems, cloud services and customer relationship management software.

"We are pleased to reach this agreement with Salesforce.com to put an end to the litigation between our two companies," said Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft. "Microsoft's patent portfolio is the strongest in the software industry and is the result of decades of software innovation. Today's agreement is an example of how companies can compete vigorously in the marketplace while respecting each other's intellectual property rights."

This agreement is another example of the important role IP plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 600 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft's significant R&D investments and its growing, broad patent and IP portfolio. In recent years, Microsoft has entered into similar agreements with other leading companies, including Apple Inc., HP, Amazon.com, LG Electronics, Nikon Corp., Novell Inc., HOYA CORPORATION PENTAX Imaging Systems Division, Pioneer Corp., Samsung Electronics Co. Ltd. and Fuji Xerox Co. Ltd.

More information about Microsoft's licensing programs is available at http://www.microsoft.com/iplicensing.

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.