"Ultimately, Microsoft remains agnostic in terms of HTML5 video as long as there is clarity on the intellectual property issues. To make it clear that we are fully willing to participate in a resolution of these issues, Microsoft is willing to commit that we will never assert any patents on VP8 if Google will make a commitment to indemnify us and all other developers and customers who use VP8 in the future. We would only ask that we be able to use those patent rights if we are sued first by somebody else. If Google would prefer a patent pool approach, then we would also agree to join a patent pool for VP8 on reasonable licensing terms so long as Google joins the pool and is able to include all other major providers of playback software and devices."
The question of indemnification seems pertinent to me, but I've only been superficially following this issue - maybe it's a red herring and Google has good reason not to offer indemnification etc. I'm curious to see the case for that.