UPDATED 11:36 EDT / JANUARY 19 2018

EMERGING TECH

Google inks patent sharing deal with Tencent as it eyes opportunities in China

Google LLC on Thursday announced that it has inked a patent sharing agreement with Tencent Holdings Ltd., China’s top tech firm by market capitalization and the fifth largest in the world, as part of a move that could pave the way for broader collaboration between the two web giants.

The intellectual property alliance is the latest in several that the Alphabet Inc. company has struck recently. Last April, Google formed a consortium with Samsung Electronics Co. Ltd., LG Electronics Inc. and several other Android device makers to facilitate sharing of mobile-related patents. The main purpose of such agreements is to provide protection against potential lawsuits. 

Google’s alliance with Tencent, however, has another aspect. The firms didn’t specify which of their respective patents are covered under their deal but have reportedly reached an “understanding” that they’ll collaborate on technology development.

The news comes as Google works to re-establish a presence in China, which it exited eight years ago over the country’s censorship policies. Most of the company’s core products continue to be banned by local regulators. Yet last month, Google opened a new artificial intelligence research hub and has reportedly been working to foster the adoption of its TensorFlow machine learning engine among Chinese companies.

The Alphabet subsidiary last year also announced plans to bring its cloud platform to Hong Kong. Given recent developments, the expansion might provide a convenient stepping stone for any potential future attempt by Google to enter mainland China’s infrastructure-as-a-service market.

Tencent also stands to gain from the patent agreement and the technology collaboration that it might give rise to. The company, which is best known for its WeChat messaging app, has been steadily growing its presence outside China over recent years through strategic investments. The alliance with Google could potentially give Tencent’s efforts a valuable boost.

Image: Google

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