Microsoft and LG yesterday announced a deal in which LG Electronics will license technology that Microsoft claims is included in Linux - thereby protecting LGE customers from potential intellectual property reprisals from Microsoft.

The accord follows a similar deal between Novell and Microsoft in which they agreed to not sue each other's customers over IP issues - according to recently revealed details. Microsoft claims 235 of its patents are infringed by Linux and other open-source software.

Through the new agreement, LGE will be able to use Microsoft-patented "innovations" in products including Linux-based embedded devices, the companies said. Microsoft will have access to LGE patents and license other patents developed by LGE that are now owned by MicroConnect.

Financial terms of the arrangement were not revealed, although the vendors said Microsoft will make a net balancing payment to LGE and MicroConnect for patents related to operating systems and computer systems.

LGE will make ongoing payments to Microsoft for the value of Microsoft patents as they relate to Linux-based embedded devices that LGE produces.

Microsoft earlier this week unveiled a similar arrangement with Xandros and has made deals of this type with companies such as Fuji Xerox and Samsung in the past 12 months, Microsoft and LGE said.