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Google Inc. and Samsung Electronics Co. Ltd have made their partnership stronger thanks to wide-ranging patent licensing agreement. The agreement is to be signed considering the intellectual property battles with some smartphone competitors such as Apple Inc., which have recently become more intense.

As reported by the Financial Times, the deputy General Counsel for patents of Google – Allen Lo, said: “By working together on agreements like this, companies can reduce the potential for litigation and focus instead on innovation.” The Samsungs Head of Intellectual Property Center – Saungho Ahn, explained: “Samsung and Google are showing the rest of the industry that there is more to gain from co-operating than engaging in unnecessary patent disputes.”

Both technology giants announced their intentions, and have agreed to sign a global patent cross-licensing deal, which is not limited to mobile devices only, but reach a “broad range of technologies and business areas”. The agreement is said to cover unspecified intellectual property that has already been registered, and also some new patents filed over the next 10 years. The two companies did not disclose any financial terms of the deal.

The deal is also believed to be able to consolidate the attempts of both Google and Samsung to push back the lawsuits against mobile device makers using the Android operating system of Google, which makes up more than three-quarters of all smartphones shipped. Over the last few years, Samsung is known as the biggest Android seller thanks to its flagship Galaxy smartphones, which use a customized version of the software of Google Inc.

Recently, Apple Inc. has argued that Samsung and other companies have copied the design of its iPhone, which lead to litigation and counter-suits worldwide, which have put billions of dollars at stake in the most competitive part of the industry. This lead to a change in Googles strategy to consolidate its intellectual-property protection by extending the company into some new markets such as wearable technology.

According to CNN Money, the current share price of Google Inc. is 3.13% down, and its one-year return rate is 0.28% up. The 42 analysts offering 12-month price forecasts for Google Inc. have a median target of 1,200.00, with a high estimate of 1,350.00 and a low estimate of 880.00. The median estimate represents a +6.78% increase from the last price of 1,123.83.

According to Bloomberg, the current share price of Samsung Electronics Co. Ltd is 1.15% down, and its one-year return rate is 7.89% down.

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