Xbox aspect of Dell's Microsoft patent agreement explained

Yesterday, Microsoft and Dell jointly announced the two companies were entering into a patent agreement. One of the more interesting aspects of the patent agreement was the fact that it specifically included “Xbox gaming consoles.”

In a press release, Microsoft said it and Dell “agreed to license each company’s applicable intellectual property related to Android and Chrome OS devices and Xbox gaming consoles.” It further stated that Dell agreed to pay royalties for its products running Android or Chrome “and on consideration to Dell for a license for Xbox gaming consoles.” That line led to some confusion, but it doesn’t mean Dell will be making its own Xbox consoles, however.

According to a Microsoft representative who spoke with Neowin, as the licensing agreement was being made, the sides agreed that some of Dell’s patents applied to Xbox consoles. The representative couldn’t say exactly what Dell patents were part of the agreement, just that Microsoft now has a license to use them.

Some reports theorized Dell could start building computers with Kinect-like features, but that doesn’t appear to be an option in the arrangement.

The deal essentially means the status quo of each company’s products will remain for consumers. The only difference is now Dell pays Microsoft licensing fees for its Android and Chrome products, similar to most other manufacturers. Dell will probably pay less than most manufacturers, however, since the deal was made with the consideration of Dell’s patents being licensed for Xbox consoles.

Image via Microsoft

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