Microsoft and Cadence to Cross-License Patent Portfolios

REDMOND, Wash., and SAN JOSE, Calif. — Sept. 19, 2007 — Microsoft Corp. and Cadence Design Systems Inc. have entered a patent cross-licensing agreement, expanding on a long-standing relationship between the two companies. The agreement allows broad access to each company’s respective patent portfolios to facilitate future technical collaboration in areas of common interest to both companies.

The companies’ exchange and implementation of patented technologies will span many areas and give both companies greater freedom to innovate.

“We are pleased to further expand our collaboration with Microsoft,” said R.L. Smith McKeithen, senior vice president and general counsel at Cadence. “Both Cadence and Microsoft are leaders in their respective technology space and in the software industry — we have a common interest in fostering innovation within the industry and leveraging those innovations to provide pioneering solutions for our customers. IP licensing is a collaborative way to spur innovation, and this agreement is a natural extension of this goal.”

“We are delighted to be collaborating with Cadence, the world’s largest maker of software used to design integrated circuits and electronic systems,” said Horacio Gutierrez, vice president of Intellectual Property and Licensing at Microsoft. “IP licensing continues to benefit today’s technology industry and its customers. This cross-license agreement is a perfect demonstration of how licensing IP extends the reach of modern innovations across companies.”

Cadence is committed to pursuing technologies that improve the development and manufacturing of electronic circuits and systems through research and development (R&D), joint ventures and alliances such as this agreement with Microsoft. Intellectual property (IP) licensing is a cornerstone of today’s software industry and is an essential element of Cadence’s strategy for offering comprehensive technology solutions.

Microsoft continues to work collaboratively with companies of all types on IP licensing and cross-licensing agreements. Since 2003, when the company announced it was “open for business” on IP, Microsoft has continued to license its IP portfolio, providing access to the fruits of its significant R&D efforts. The company maintains a growing worldwide quality patent portfolio that includes several thousand issued and pending U.S. patents. Recent Microsoft cross-licensing collaborations include Cisco Systems Inc., LG Electronics, Samsung Electronics Co. Ltd., NEC Corp., Seiko Epson Corp., Siemens AG, SAP AG and Toshiba Corp.

About Cadence

Cadence enables global electronic-design innovation and plays an essential role in the creation of today’s integrated circuits and electronics. Customers use Cadence software and hardware, methodologies, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. Cadence reported 2006 revenues of approximately $1.5 billion, and has approximately 5,200 employees. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at

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.

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