Late on Tuesday, Microsoft and JVC announced in a joint statement that they decided to sign a patent cross-licensing deal, in a move that comes to strengthen the two companies’ long-term collaborative relationship. The deal will also contribute to both Microsoft and JVC’s further development of current and future product lines.

Neither Microsoft nor JVC revealed the financial terms of the deal; however, they both agreed that the agreement results in a net financial benefit for the world’s largest software maker, Microsoft.

"When technological industry leaders collaborate through intellectual property licensing, we foster greater innovation that will benefit the customer, the consumer and the overall IT ecosystem,” said Horacio Gutierrez, Microsoft’s intellectual property chief.

According to Microsoft and Victor Company of Japan (simply known as JVC), the recently announced agreement will cover a wide range of consumer products that each company sells and will promote the exchange of valuable information and the incorporation of patented technologies in their products.

As part of the agreement, Microsoft will not be able anymore to assert rights over any patents to software technology that may have been incorporated into Novell’s Suse Linux.