Today at the Innovation Summit in Beijing, Microsoft Corp. announced the first-ever licensing of technologies to two Chinese software companies, Comtech Group Inc. and Hunan Talkweb Information System Co. Ltd. (Talkweb). The innovative mobile communications technologies were developed by scientists at Microsoft Research Asia in Beijing. Comtech and Talkweb are demonstrating the potential for intellectual property created in China to be the basis for new businesses in the growing Chinese knowledge economy. Although Microsoft has successfully partnered with other companies and entrepreneurs in Europe and the U.S., this is the first time early-stage intellectual property-based technologies are being licensed under the shared-success business model of Microsoft� IP Ventures in China.

�The change in the way Chinese companies think about intellectual property rights and licensing is allowing companies like Comtech and Talkweb to take advantage of business opportunities in the knowledge economy,� said Ya-Qin Zhang, corporate vice president for Microsoft China Research and Development Group. �Through IP Ventures, Comtech and Talkweb now have the opportunity to increase their unique footholds in the IT industry by expanding their business offerings with innovative technologies that carry the potential of stimulating consumer interest, innovation, competitiveness and, ultimately, greater economic development.�

As the Chinese government makes strides to open its economy to multinational businesses, including stronger intellectual property (IP) protection, Microsoft is making increasing investments in China to accelerate innovation and economic development in the region. The three technologies from Microsoft Research Asia � Mobile Picture, Mobile Bandwidth Optimization and Personalized Facial Sketch � represent unique, innovative components that Comtech and Talkweb will deliver in new products to be launched to consumers in the coming months.