Microsoft and LG Electronics have entered into a patent cross-licensing agreement that covers intellectual property contained in hardware and software products, including Linux. 

Microsoft has announced similar agreements in the past 12 months with companies including Fuji Xerox, NEC, Nortel Networks, Novell, Samsung and Seiko Epson. 

The software giant claimed that the agreements help to bridge the gap between computer hardware, software and telecoms solutions providers.

Under the terms of the agreement, LG will be able to use Microsoft-patented technology in its products, including embedded Linux-based devices.

In turn Microsoft will have access to LG's patents and will license other patents developed by LG that are now owned by business provider MicroConnect Group.

"We believe that the licence arrangement with Microsoft provides appropriate recognition of the value of LG's computer system-related patents, which includes patents directed to computer architecture utilised in game consoles and other products," said Jeong Hwan Lee, executive vice president of the Intellectual Property Centre at LG.

Horacio Gutierrez, vice president of intellectual property and licensing at Microsoft, added: "This agreement is another example of how Microsoft is continuing to build bridges with others in the industry through intellectual property licensing."

Specific financial terms of the agreement remain confidential, but the parties disclosed that Microsoft will make a net balancing payment to LG and MicroConnect for patents related to operating systems and computer systems.

LG will make ongoing payments to Microsoft for the value of Microsoft patents as they relate to Linux-based embedded devices produced by LG.