Microsoft and LG yesterday announced a deal that will allow LG Electronics to use Linux in its products. The agreement will give LGE customers peace of mind, reducing the fear of Microsoft reprisals over intellectual property issues.

The accord follows a similar deal between Novell and Microsoft in which they agreed to not sue each other's customers over IP issues.

See also: Novell sidesteps Microsoft's Linux liability

Through the new LG Electronics and Microsoft 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.