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Microsoft licenses Adobe mobile software

By AMANDA FEHD, Associated Press Writer Mon Mar 17, 8:44 AM ET

SAN JOSE, Calif. - Microsoft Corp. has licensed Adobe's software for viewing online videos and other files on cell phones, the companies said Monday. ADVERTISEMENT

Microsoft will distribute Flash Lite and Reader programs from Adobe Systems Inc. to cell phone makers who use its Windows Mobile software.

Flash also allows users to interact with more Web sites. It's the software behind most shopping sites where you can view an item in different colors or try out house paint colors on a virtual home.

"Flash content is the most prolific content on the web today; it is the way people express themselves on the Internet," Adobe spokesman Gary Kovacs said.

Julie Ask, an analyst at Juniper Research, said cell customers are more likely to browse the Web when they have more capable phones, and that's good news for advertisers.

"The more likely they are to use it, the more that folks are willing to invest in the platform, and the more likely there are to be page views. It's good for advertisers, it's good for carriers," Ask said.

Scott Rockfeld, group product manager at Microsoft's mobile communications business, said the decision was about providing more choice to its customers, even though Windows Mobile already offers 18,000 applications for everything from picking a wine to go with dinner to watching videos.

"Obviously it's one of the things that customers are asking for. Flash is something that is very prevalent on the Web," Rockfeld said.

In 2007, 11 million phones carried Windows Mobile. Microsoft expects to double that in the next year.

Over half a billion mobile devices have shipped worldwide with Flash preinstalled, amounting to a 150 year-over-year percent growth, Adobe said.

Microsoft wouldn't say what it is paying Adobe to license the software, but the programs will remain free for end-users.

Microsoft has its own video viewing software, Silverlight, considered a competitor that could slowly chip away at market share for Adobe's Flash. Microsoft said last month it would give 1 billion students free access to Silverlight and other software that competes with Adobe, such as Expression Studio.