Tie-Up to Cross-License Patents Announced by Tencent and Google

Google has finalised a deal to tie-up with Tencent in an attempt to improve its presence in China.

The patent cross-licensing agreement is set to be “long-term.” According to Google, it covers a range of technologies. Other terms of the said deal were not disclosed. However, the company said that it could open the door to closer collaboration in the future.

It marks an important leap for Google into China, where most of the services of the company are blocked by the authorities.

Lately, Tencent has been noted to be on a streak of partnerships and acquisitions outside of China. Last December, the company agreed to swap a 10 percent stake in its music business for an equivalent share in Spotify.

Earlier this month, it was revealed that the company would be working with Lego in order to develop online games for children. Last November, it also bought a stake in Snapchat, with the plan of helping to enhance the gaming abilities of the app.

Google has also improved its activities in China, with an AI lab that is planned for Beijing and an investment in Chushou, a streaming service.

Tech companies in the United States are increasingly seeking for Chinese counterparts for growth opportunities. However, regulators have been known to stop deals which would have companies from China take over the ones from the United States because of security fears. Last month, authorities stopped the $1.2bn sale of MoneyGram to the payments arm of Alibaba, while Canyon Bridge was blocked from completing its purchase of Lattice Semiconductor Group, an Apple, chip supplier.