Google, Cisco Sign Patent Cross-licensing Deal - Quick Facts

(RTTNews) - Cisco (CSCO), the world's largest computer networking gear maker, and Google Inc. (GOOG) have reached a long-term patent cross-licensing agreement, including a broad range of products and technologies.

This deal allows each company to extract significant value from its patent portfolio through a license to the other's portfolio and by helping to reduce the risk of future litigation. It stands in direct contrast to actions such as patent privateering, or the transfer of patents to patent assertion entities, that harm consumers, Cisco added.

"Our agreement with Cisco will reduce the potential for litigation, letting us focus instead on building great new products," said Allen Lo, Google's Deputy General Counsel for Patents.

Both Cisco and Google are members of the Coalition for Patent Fairness, a leading advocacy group for patent reform. Further, Cisco General Counsel Mark Chandler recently reiterated a pledge not to sell patents to patent assertion entities in order to help encourage innovation rather than litigation.