What is a cross-licensing agreement? How do large software companies use such agreements? Do you think their use is fair to small software development firms? Why or why not?


This is an agreement in which each company agrees not to sue the other over patent infringements. Large companies, such as Microsoft, IBM, Sun Microsystems, and Hewlett-Packard, go into agreement with one another to obtain the rights to technologies that it might use in its products. This provides a tremendous amount of development freedom without the risk of expensive litigation. It does not seem fair that small businesses must pay an additional cost, from which larger companies are exempt, to license the patents they use.

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