Xiaomi Corp. has purchased around 1,500 patents from Microsoft Inc. as the Chinese smartphone manufacturer seeks to expand beyond China and other emerging markets. The patent deal covers wireless communications, video, cloud and multimedia technologies. The financial details of the agreement have not been disclosed.

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The patent deal is seen as part of a broader cross-license agreement that both companies announced earlier this week. The cross license agreement will allow Xiaomi to preload Microsoft Office and Skype on several of its devices including the Mi 5, Mi Max, Redmi Note 3 and Mi 4S.

"This will help our ease of operation in new markets," Xiaomi spokeswoman Kaylene Hong said.  

For a long time, Xiaomi has been planning to enter into the developed markets of US and Europe. However, its apparently small mobile patent portfolio has been a major hindrance to its entry into the US and European market.

Experts say that without a large mobile patent portfolio, Xiaomi may find itself in legal entanglement over intellectual property in the tightly-regulated US market. The patent deal with Microsoft is widely seen as Xiaomi's attempt to avoid any legal troubles once it enters into the US market.

The company said it plans to enter into the US mobile market soon. However, it did not provide any specific time-frame for the move.

Since its sensational debut in 2014, Xiaomi's affordable smartphones have been selling like a hot cake in China, India, and Brazil. However, oversaturation in emerging markets coupled with increasing competition from other Chinese manufacturers has forced Xiaomi to look at other markets to raise its profit.

TagsXiaomi, Chinese Mobile Companies, Chinese Mobile Manufacturers, Microsoft Inc