Securing patent rights is important for the development of the company’s product portfolio. Strong patent portfolio creates
market exclusivity to the proprietary technology, giving the company an edge over its competitors. The company's success
depends primarily on its ability to maintain and establish the proprietary nature of its technology through the patent process.
The company protects intellectual property investments in a variety of ways. It actively works in the U.S. and internationally
to ensure the enforcement of copyright, trademark, trade secret, and other protections that apply to its software and
hardware products, services, business plans, and branding. Microsoft maintains a comprehensive U.S. and international
portfolio of intellectual property which help it in protecting its technologies. As of December 2012, Microsoft is one of the
leading technology companies with a portfolio of over 31,000 U.S. and international patents issued and over 38,000
pending. Microsoft is also involved in outbound and inbound licensing of related patented technologies that are
incorporated into licensees’ or Microsoft’s products. The company also purchases or license technology that it incorporate
into products or services. A strong patent portfolio would help the company protect its various products from being
infringed, strengthen its market presence and generate revenue through milestone licensing fees.