Xiaomi's Microsoft Patent Buy-Up Shows China Tech's Global Push

Xiaomi, a Chinese-based electronics company, recently announced it will buy nearly 1,500 of Microsoft's patents, covering wireless communications, video, cloud, and multimedia technology. The deal, which also includes a patent cross-licensing arrangement, allows Xiaomi to install Microsoft software, including Microsoft Office and Skype, on its devices, such as phones and tablets. In speaking to the transaction, Finnegan partner Ningling Wang told Bloomberg, "The government is encouraging tech companies not only to file for patents but also find ways to make money from them." She continues, "The goal is to 'extract value from high-quality patents.'" "Historically, Chinese companies have tended to use patents solely for defensive purposes, but now Chinese companies are becoming more sophisticated."