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Microsoft signs Android royalty agreement with Dell

Microsoft signs Android royalty agreement with Dell
It has been widely reported that Microsoft makes perhaps as much as $2 billion per year in Android patent fees due to the patents it owns. Some of that is based on assuming certain factors, but one cannot help but appreciate the irony of Microsoft making money off of Android devices.

Microsoft apparently holds patents that it claims are relevant to Chrome OS as well, but that is something Google is understandably challenging. In the meantime, Microsoft has made it position clear to OEMs that make all these gadgets.

Among them, Dell, who has just signed a patent licensing agreement with Microsoft. This is not just another one-way street though, since this also involves patents Dell owns and are relevant to the Xbox gaming consoles.

Dell has agreed to license intellectual property for Android and Chrome OS hardware it builds and sells while Microsoft has agreed to reciprocate for technology used in the Xbox. “Our agreement with Dell shows what can be accomplished when companies share intellectual property,” according to Horacio Gutierrez, corporate vice president and deputy general counsel of the Innovation and Intellectual Property Group at Microsoft.

This arrangement may have something to do with the possibility of Microsoft wanting to expand Xbox Live functionality into Android and iOS environments.  An agreement such as this may dot the "i's" and cross the "t's."

“We have been partnering with technology manufacturers and vendors for many years to craft licensing deals, instead of litigation strategies.”

-Horacio Gutierrez, Microsoft
Of course, Dell and Microsoft have had a relationship for decades even though the companies do compete with each other at certain levels. Gutierrez further noted, “We have been partnering with technology manufacturers and vendors for many years to craft licensing deals, instead of litigation strategies,” a statement obviously pointed at Google who refuses to play nice with Microsoft.

Dell, for its part, has dropped its Windows Phone plans for the time being, but continues to offer tablets and PCs running Windows. Dell also makes Venue tablets powered by Android in a variety of configurations.

source: Microsoft

19 Comments
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posted on 27 Mar 2014, 19:54 5

1. lyndon420 (Posts: 1762; Member since: 11 Jul 2012)


When will these secret patents that ms claims to own be made public knowledge? I want to see them.

posted on 27 Mar 2014, 20:03 2

3. jroc74 (Posts: 4934; Member since: 30 Dec 2010)


Yea that too. I thought one time it had something to do with maps....but if it does it wouldnt make sense. Still doesnt make sense because shouldnt they be going after Google and Google only?

posted on 27 Mar 2014, 21:30 4

15. lyndon420 (Posts: 1762; Member since: 11 Jul 2012)


Google let's OEM's use Android for free, so technically it's pointless to try and sue Google for monetary damages when no revenue is generated through distribution of the operating system. The OEM's on the other hand are making money from the millions and millions of consumers who are buying into the Android platform.

posted on 27 Mar 2014, 20:13 1

7. AstronautJones (Posts: 268; Member since: 01 Aug 2012)


Secret patents? Patents are public knowledge once approved and published, except matters of "National interest".
I am sure the companies paying these licensing fees know why they are paying M$.

posted on 27 Mar 2014, 20:55

9. jroc74 (Posts: 4934; Member since: 30 Dec 2010)


Its not that...its just for some reason....we know all about Apple and Samsung patents.....we barely know anything about MS's.

Maybe if one day someone decided not to pay and there becomes a lawsuit....we may know more. This got me doing some reading...seems the MS, Motorola case involved the patents it has Android OEM's paying.

posted on 27 Mar 2014, 21:13 2

12. jroc74 (Posts: 4934; Member since: 30 Dec 2010)


Could be true...but they lost their mind trying to sue Motorola over this:

"Radio interface layer in a cell phone with a set of APIs having a hardware-independent proxy layer and a hardware-specific driver layer"

Moto basically invented the cellphone...I see why Motorola/Google were one of the few that fought back.

I dont know much about patents...but I have a feeling if more OEM's challenged MS.....they might also come out on top like Moto/Google did.

posted on 27 Mar 2014, 21:24

14. lyndon420 (Posts: 1762; Member since: 11 Jul 2012)


Google and Samsung are exchanging patent portfolios now, although I doubt it will do much for the current court cases already in progress.

posted on 27 Mar 2014, 21:35

16. jroc74 (Posts: 4934; Member since: 30 Dec 2010)


Ok...somethings strange with these patents and the cases. Moto did have phones banned:

http://www.phonearena.com/news/Microsoft-sues-U.S.-Customs-over-failure-to-enforce-Motorola-phone-ban_id45270

But...thats only one patent...Does that mean the other 8 were thrown out? And its wild that Google is the company behind Android...but only OEM's can get sued? Its just strange....

More info from more reading:

http://www.pcworld.com/article/2070280/german-court-invalidates-microsoft-patent-used-for-motorola-phone-sales-ban.html

And it seems the biggest patent is about calendars or Outlook type apps.

http://www.bna.com/itcs-import-ban-n17179880855/

posted on 27 Mar 2014, 21:22

13. lyndon420 (Posts: 1762; Member since: 11 Jul 2012)


Case in point - "...once approved and published" tells me that the patents in question are technically not theirs at least not yet. Of course the companies must know what they are, but they are put under gag orders and prevented from disclosing them.

posted on 27 Mar 2014, 20:57

10. jroc74 (Posts: 4934; Member since: 30 Dec 2010)


A post some made a few minutes ago got me thinking...doing some reading seems like the Moto, MS case has the patents in it.

For some reason it doesnt get as much attention as Apple vs Samsung. Here are the patents MS says Android OEM's are using:

http://arstechnica.com/information-technology/2010/10/microsoft-sues-motorola-citing-android-patent-infringement/

posted on 27 Mar 2014, 19:54

2. jroc74 (Posts: 4934; Member since: 30 Dec 2010)


What patents does Dell own?

posted on 27 Mar 2014, 20:12 2

6. akki20892 (Posts: 3555; Member since: 04 Feb 2013)


The girl with dragon tattoo.

posted on 28 Mar 2014, 07:05

19. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


what patents does ms own that android pays fee to ms?

posted on 27 Mar 2014, 20:09 3

4. papss (unregistered)


Hmmm that's a nice deal for both of them.. I like this M$

posted on 27 Mar 2014, 20:10 2

5. Liveitup (Posts: 1321; Member since: 07 Jan 2014)


If MS patent weren't valid then some of the largest companies on Earth would not comply, think about it.

posted on 27 Mar 2014, 20:44 1

8. PBXtech (Posts: 980; Member since: 21 Oct 2013)


This is how things should be done, no banning or court cases involved, just corporations getting along properly.. Ahem,.....

posted on 27 Mar 2014, 21:01 1

11. sip1995 (Posts: 851; Member since: 07 Feb 2014)


Apple and SAMEsung should take a lesson from this.

posted on 28 Mar 2014, 01:09

17. dorian827 (Posts: 126; Member since: 28 Jul 2012)


Microsoft is the software world, without it there are many OS and programs that may have not existed or exist today. Some developers or most probably develop Chrome, IOS, Firefox OS and BlackBerry, etc apps off a Windows PC.

posted on 28 Mar 2014, 02:10

18. kaikuheadhunterz (Posts: 744; Member since: 18 Jul 2013)


I think I'm the only one who doesn't understand the agreement

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