Xiaomi's Microsoft Patent Buy-Up Is Part of Its Global Push

For decades, Chinese disregard for trademarks, copyrights, and other intellectual property has frustrated U.S. technology, entertainment and other companies. The next wave of intellectual-property conflict in China won't be fights over pirated software or unauthorized downloads. Microsoft, which has been a leader in fighting Chinese pirates, this week announced a deal with Xiaomi, maker of some of China's most popular smartphones, to put Skype and Microsoft Office on Xiaomi's Android phones. As part of the deal, Xiaomi is buying nearly 1,500 of Microsoft's patents, covering wireless communications, video, cloud, and multimedia technology.

The fact that Microsoft can find in Xiaomi a ready buyer for a bunch of its patents is a sign of the growing importance Chinese companies now put on intellectual property. This is particularly true of tech companies trying to develop global brands. Xiaomi wants to build sales with consumers outside China, and part of that push means accumulating more patents.