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Relations With Beijing Sought To Be Repaired By Google Through Tencent Patent Sharing Agreement


01/20/2018


Relations With Beijing Sought To Be Repaired By Google Through Tencent Patent Sharing Agreement
In what is being viewed as an attempt by Alphabet's Google to repair the soured relations with Beijing and to seek a way to register a greater presence in the massive online market of China, the U.S. based search engine has inked a patent-sharing agreement with Chinese internet giant Tencent Holdings.
 
The social networking and the games market in China is clearly dominated by Tencent and experts view the agreement on patents that was announced very recently by the two companies would help the U.S. search engine to avoid direct confrontation with the Chinese search engine. This is important for Google because the company now is trying to make inroads into the country.  For the companies that are seeking to make use of the proprietary technology of another company through sharing of their own expertise and reducing the threat of patent infringement, this element of cross-licensing is important especially when cutting-edge businesses processes are concerned.
 
Sharing of various products and technologies have bene announces by Tencent and Google even though no further details have been provided by the companies. The companies said that they would strive to develop revolutionary technology through close cooperation which is a sign that they intend to take their relationship to the next level in the future.
 
In addition to making good gathering of expertise and knowledge about artificial intelligence, Chinese tech companies have in fact gone a step ahead of the U.S. tech giants with respect to technologies like facial recognition and mobile payments. The deal with Tencent by Google could be used by the U.S. giant to make use of Chinese technologies so that it is able to offer its services in China.
 
On its side, Tencent believes that this sharing agreement would allow it to better its offers of products and services globally. The aim of the Chines tech company is hoping to enhance and hasten its process of product development for global expansion by making up for what it does not possess through this sharing agreement with Google.  Overseas sales for Tencent accounts for just about 5 per cent of its total revenues.
 
While Google had started its Chinese services way back in 2000 but its project ran in to problems due to censorship and other issues with the Chinese government. The U.S. company had to retreat from the Chinese market after its search engine was banned from mainland China in 2010.
 
Despite this, the Chinese market has been an attractive proposition for Google. The company has made several attempts to mends its relation with Beijing. Last month, an internet related conference organized by the Chinese government was attended by Google CEO Sundar Pichai.
 
Last march, the Chinese government approved the use of Google Translate app for smartphones and this is seen as a process of the Chinese authorities slowly allowing Google access to the Chinese market transgressing the so called Great Firewall.
 
(Source:asia.nikkei.com)