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Microsoft has scalped royalty fees from more than half of the Android makers already

Posted: , by Daniel P.

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Microsoft has scalped royalty fees from more than half of the Android makers already
Microsoft felt compelled to update us (and its shareholders), that the company has already managed to ring in royalty fees from more than a half of Android ODMs and OEMs. After Quanta, the last scalp is that of Compal, another big ODM.

The high-profile names that Microsoft has already signed up for protection services include HTC and Samsung which are shelling out the rumored 5-10 bucks per handset to Redmond for patents held since the Windows Mobile days. Microsoft even made some nifty charts to explain how much of the Android pie still sits uneaten.

With revenues like these from mobile, the company can afford to feed in a lot of cash in marketing and promotional activities for Windows Phone, whose rise to become the third major mobile ecosystem should start very soon, with the unveiling of the Nokia Windows Phones on Wednesday in London.

source: Microsoft

Microsoft has scalped royalty fees from more than half of the Android makers already
Microsoft has scalped royalty fees from more than half of the Android makers already
Microsoft has scalped royalty fees from more than half of the Android makers already

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posted on 24 Oct 2011, 02:45 4

1. Sjoerd_t_b (Posts: 2; Member since: 08 Dec 2010)


Just to make something clear, Microsoft is not a patent troll. The definition of a patent troll: The patent troll does not research or develop the technology or any products related to its patent. Rather, the patent troll waits for others to independently develop the patented technology into useful products and to create a market for those products. Once the newcomers are locked-into the new technology, the patent troll seeks rents either through licensing or litigation.

posted on 24 Oct 2011, 10:41

15. terabyteRouser (Posts: 412; Member since: 18 Oct 2011)


Could you provide examples of companies who qualify as patent trolls, based on your definition?

posted on 24 Oct 2011, 05:13 3

2. hawk62 (Posts: 320; Member since: 21 Nov 2009)


They are doing what any company should and would do. So is apple.

Google is the one in the wrong if they stole from ms n apple.

posted on 24 Oct 2011, 16:13 2

17. McLTE (Posts: 638; Member since: 18 Oct 2011)


The difference I see between Apple and MS is that MS is going about things in a manner that the patent system was designed to use.

The patent system was designed to encourage innovation and to protect the innovators. The violators pay fines and usually agreements are made to license the patents/technologies. This is what MS is doing.

Apple is using patents as a way to stifle innovation and to prevent other companies from having space in the market. That to me is WRONG.

Apple is afraid of losing their position of domination.. as they should be! So instead of innovating to maintain their position, they try to squash the competition in patent battles. LAME.

posted on 24 Oct 2011, 05:31 3

3. Whateverman (Posts: 3187; Member since: 17 May 2009)


I wonder how this will change as ICS rolls out since its supposed to be totally revamped to avoid infringement on other companies patents. If its true, Microsoft will soon have to kiss that extra revenue goodbye.

posted on 24 Oct 2011, 05:41 1

4. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Changing the interface won't save them from patent infrengment.

posted on 24 Oct 2011, 07:03 5

8. remixfa (Posts: 13902; Member since: 19 Dec 2008)


they are less worried about MS wanting 5 bucks a set right now than they are about apple trying to shut everyone down. the ICS changes were to shut apple up, not MS... hell, some of the new interface looks like it was pulled right from WP7.

maybe they figure since they are already paying royalties.. why not? lol

posted on 24 Oct 2011, 08:36 2

11. snowgator (Posts: 3188; Member since: 19 Jan 2011)


Actually, I never thought of it that way. Why not indeed? :-D

posted on 24 Oct 2011, 08:56 1

13. protozeloz (Posts: 5369; Member since: 16 Sep 2010)


that's true, most things are where set up with agreements on both sides allowing them to use some of MS IP as long as they pay up, instead of having apple banning them from the market, 5 bux wont hurt their earnings as they continue to focus on other things

posted on 24 Oct 2011, 05:45 3

5. Smg-Uk (Posts: 24; Member since: 12 Oct 2011)


Pretty funny considering the amount of copied features from Metro that ICS Has.

posted on 24 Oct 2011, 06:45 2

6. Cyd07 (Posts: 83; Member since: 03 Oct 2011)


I think they are right. If judges say they are right, indeed we must think there are realling patents infringements. So it's normal they do it.

And, unless Apple, they make mature business : licence to gain cash for R&D, marketing, etc..., chile letting others sell their products. That can just increase the level of the competition by developping their own products (through R&D or marketing to gain marketshare and therefore attract more developpers).

posted on 24 Oct 2011, 06:59 3

7. bossmt_2 (Posts: 429; Member since: 13 Oct 2009)


Microsoft also owns real patents unlike Apple.

posted on 24 Oct 2011, 07:28 1

9. Droid_X_Doug (Posts: 5539; Member since: 22 Dec 2010)


MS should focus on its royalty revenue and dump WP7. It is making far more $ from royalties than it is making from WP7 licenses.

posted on 24 Oct 2011, 08:40 5

12. snowgator (Posts: 3188; Member since: 19 Jan 2011)


Why dump WP when the steady stream of cash from royalties probably offsets the R&D of the OS? Android is funding the competition. If Android manufacturers don't care due to making huge profits off a free OS, why wouldn't Microsoft take advantage? It is a strange set up, but it seems to work.

posted on 24 Oct 2011, 08:33 7

10. snowgator (Posts: 3188; Member since: 19 Jan 2011)


Okay Daniel P.- Didjya get it off your chest???
"After Quanta, the last scalp is that of Compal, another big ODM."

"The high-profile names that Microsoft has already signed up for protection services ...."

"Microsoft even made some nifty charts to explain how much of the Android pie still sits uneaten."

As Apple and Samsung try to sue each other out of buisness, and tell all books from Steve Jobs biographers talk about how he wanted to go all Stalin-like on Google, Microsoft approches one company at a time, works out a settlement, moves on. Yes they are making a ton of cash, but last I checked that was a desire of every buisness. They are not trying to put anyone out of production. They are willing to rebuild their OS and compete in sales, not courtrooms. Let's not forget: Android basically destroyed Windows Mobile. They couldn't compete with the functions and basic FUN it offered. They could have gone the Apple route and tried to ban it. Instead, they went against form and are trying to build a new brand. Microsoft was a horrid, cutthroat organization in the past, but they seem to be a confident group right now that is not threatened by competition.

You want to spew this type of bias, go right ahead. Put it under Opinion or as a feature column. Just don't disguise it as news.

posted on 24 Oct 2011, 16:15 2

18. McLTE (Posts: 638; Member since: 18 Oct 2011)


Very well said!!

I couldn't agree more!

posted on 24 Oct 2011, 10:03 1

14. robinrisk (unregistered)


Now, does anyone know what does patents are about?

posted on 24 Oct 2011, 10:42

16. protozeloz (Posts: 5369; Member since: 16 Sep 2010)


Intellectual properties

posted on 25 Oct 2011, 15:27

19. robinrisk (unregistered)


Duh... i meant of course what where they about? Code? Hardware? Specifics and all

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