LG phones to feature Microsoft applications

South Korea – In a patent cross-licensing agreement with Microsoft Corp., South Korea-based mobile phone manufacturer LG Electronics Inc. will now be able to pre-install Microsoft applications, including Linux-based embedded devices, in its mobile phones and mobile computing products. Company analysts believe that with the agreement, LG will be able to better compete with its rivals such as Samsung Corp. in next-generation mobile devices including smart phones and PDAs.

The license agreement also gives Microsoft access to LG's computer system-related patents directed at computer architecture utilized in game consoles and other products. It allows the software company to use patents developed by LG that are owned by MicroConnect Group, a United States-based business software developer, in its Xbox game console.

Market analysts believe that the agreement could become a huge revenue driver for LG, especially given Microsoft's plan to expand its home networking business in two or three years.