It looks like Microsoft is about to rake in a lot of money from Casio as the two have just signed a deal for Casio to pay licensing fees over the use of Linux in upcoming products. Casio manufactures a lot of consumer electronics, including calculators and watches. Where it makes a lot of its revenue, though, is from enterprise products for business and corporate use.
It's unclear which of these divisions Casio is looking to ultimately target with the new Microsoft deal, but clearly Linux appears to be a strategy for the future of the company.
Although Microsoft does not own Linux, it has argued that Linux products are in violation of its patents. As such, anyone looking to incorporate Linux into their company is essentially forced to sign licensing arrangements with the software giant.
This is the latest in a slew of new licensing agreements for Microsoft. "It's safe to predict more [agreements] will follow this fall," wrote Microsoft in a Twitter post.
Microsoft and Casio already have a well defined business relationship, mainly from their work together in enterprise systems and products. As such this seems to be a fairly painless deal and one that could potentially benefit both companies. Of course, Microsoft will reap the rewards right away while Casio will need to prove that Linux is the right strategy for its future.
Microsoft has more than 700 licensing agreements in place, making it one of the most lucrative aspects of the business. The company is always on the lookout for more patent revenue and has filed many patent infringement lawsuits over the years. It is currently in a legal dispute with Barnes & Noble and Motorola Mobility over patent arguments.