Google Inc. on Friday announced to have agreed to a patent licensing deal with Tencent Holding Ltd. According to the Google announcement, the deal is aimed at expanding its reach in China where many Google products like search engine, app store and email services are blocked by regulators.
Although the terms were not disclosed, but Google has claimed that the tie-in with Tencent is valued at over $500 billion. The agreement covers a broad range of products and technologies and is a long-term bond between the two tech giants. Google and Tencent pledged to work together on future innovation and technology.
Although the Google has also signed similar agreements before with other technology companies such as Samsung Electronics, Cisco Systems Inc., and LG Electronics, but the deal with Tencent is a first with a large Chinese tech firm.
Tencent is a social media and gaming firm, based in China. “The agreement with the Tencent covers a wide range of products and paves the way for collaboration on technology in the future, claimed Google during the event on Friday.
Google’s Head of Patents, Mike Lee said, “We’re pleased to enter into a patent cross-license with the China-based firm, Tencent. Tech companies, by working together on agreements such as this, can focus on building better products and services for their users.”
Over the past years, a Google announcement has indicated that it was planning to increase its presence in the Chinese market where its products and services have been restricted. Google announced to achieve the goal with the launch of a local AI research lab and expansion into new cities. Google also announced that it has invested in Chinese livestream gaming app Chushou.
Sundar Pichai CEO of Google also joined and spoke at a conference in China hosted by the Cyberspace Administration of China. The conference oversees censorship in the country.