Microsoft Corp. and LG Electronics on Thursday announced that they had entered into a patent cross-license agreement to accelerate the development of the companies’ current and future product lines. The patents relate to services, communication hardware and open-sources software.

Through the agreement, LG will be able to use Microsoft-patented innovations in its products, including Linux-based embedded devices. Microsoft will have access to LG’s patents and will license other patents developed by LG that are now owned by business solutions provider MicroConnect Group. The specific financial terms of the agreement are confidential, but the parties are disclosing that Microsoft will be making a net balancing payment to LG and MicroConnect for patents related to operating systems and computer systems. LG will be making ongoing payments to Microsoft for the value of Microsoft patents as they relate to Linux-based embedded devices that LG produces.

“This agreement and our good relationship with Microsoft enable LG to provide improved telecommunications solutions to our customers. We believe that the license arrangement with Microsoft provides appropriate recognition of the value of LG’s computer system-related patents, which includes patents directed to computer architecture utilized in game consoles and other products,” said Jeong Hwan Lee, executive vice president of the intellectual property center at LG.

Microsoft has focused on patent agreements in the recent past to develop model for protecting intellectual property (IP) and respecting the IP rights of others, as well as building bridges with an array of industry leaders, including consumer electronics, telecommunications and computer hardware providers.

In the past 12 months, Microsoft has announced similar agreements with companies such as Fuji Xerox, NEC Corp., Nortel Networks, Novell Inc., Samsung and Seiko Epson Corp. to help build bridges between the world’s leading computer hardware, software and telecommunications solutions providers.