Microsoft Enters Into Patent Cross-Licensing Agreement With Funai

REDMOND, Wash. — Jan. 19, 2010 — Microsoft Corp. has signed a patent cross-licensing agreement with Funai Electric Co. Ltd., manufacturer of LCD TVs sold in the United States under brands such as Philips, Magnavox, Sylvania and Emerson, to further the development of each company’s current and future products. The agreement allows greater mutual access to each company’s respective patent portfolio.

The agreement covers consumer audio-video products including LCD TVs. Funai also will gain access to Microsoft’s Extended File Allocation Table (exFAT) patents. These patents cover many of the innovative ideas behind exFAT, a file system built to handle today’s rich and integrated media experiences. Although the contents of the agreement have not been disclosed, the parties indicated that Microsoft is being compensated by Funai.

Microsoft and Funai believe that this patent cross-licensing agreement will substantially benefit their customers.

“Consumers want TVs to offer experiences that were once available primarily on personal computers. A patent license like this one allows two industry leaders to deliver the type of cutting-edge innovations that today’s consumers demand,” said David Kaefer, general manager of Intellectual Property (IP) Licensing at Microsoft. “Our patent portfolio reflects the innovation that results from the billions of dollars of R&D Microsoft invests each year, and we are pleased to share access with an established leader such as Funai.”

“We are very pleased that this agreement enables us to incorporate Microsoft technology into our products, which will foster an even richer user experience for our customers,” said Kenji Sakata, officer of IP licensing at Funai.

Microsoft’s Commitment to Licensing Technology

The licensing agreement is another example of the important role patents play in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 600 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft’s significant research and development investments and its growing, broad patent and IP portfolio. Over the past few years, Microsoft has entered into similar agreements with Nikon Corp., Olympus Corp., Onkyo Corp., Pioneer Corp., Samsung Electronics Co. Ltd., Seiko Epson Corp., Toshiba Corp. and Victor Company of Japan Ltd. (JVC).

More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing.

About Funai

Founded in 1961, Funai Electric Co., Ltd., (Code No.: 6839 First Section of TSE/OSE) is a leading company in development/design, manufacture, marketing and distribution of audio/visual products such as LCD TVs, DVD Recorders and Blu-Ray Disc Players.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

For more information, press only:

Rapid Response Team, Waggener Edstrom Worldwide for Microsoft, (503) 443-7070, rrt@waggeneredstrom.com

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