Microsoft signs patent deal with LG, now milking 70% of all US Android smartphones

Microsoft signs patent deal with LG, now milking 70% of all US Android smartphones
Microsoft has just announced that it has signed a patent deal with LG over Android phones, tablets and other devices, but also for Chrome OS. With LG, now 70% of all Android smartphones in the US include the Microsoft fee. Microsoft is also suing Motorola Mobility and Barnes & Noble over Android intellectual property.

“We are pleased to have built upon our longstanding relationship with LG to reach a mutually beneficial agreement. Together with our 10 previous agreements with Android and Chrome OS device manufacturers, including HTC, Samsung and Acer, this agreement with LG means that more than 70 percent of all Android smartphones sold in the U.S. are now receiving coverage under Microsoft’s patent portfolio,” Horacio Gutierrez, corporate VP of Intellectual Property Group at Microsoft said. “We are proud of the continued success of our program in resolving the IP issues surrounding Android and Chrome OS.”

The actual terms of the agreement however weren’t revealed.

It was previously speculated that thanks to patents Microsoft might be making more money from Android devices than from its own Windows Phone platform, but it’s hard to judge as there are no hard figures. Speculations pointed out that Microsoft is getting $5 for every HTC device with Android, for example.

source: Microsoft via Engadget



24. systamatics

Posts: 63; Member since: Nov 16, 2011

what ip thing!! and why cant google work around it?!

23. Forsaken77

Posts: 553; Member since: Jun 09, 2011

Microsoft has ALL the biggest Android manufacturers under its' patent portfolio. That's pretty impressive. They said they have 70% of all Android manufacturers.... so 30% are doing something different that doesn't infringe on MS's patents. I'm curious as to why HTC, Samsung ect... don't circumvent the patents that MS holds like the other 30% are doing. PA: Please find out what patents these are

20. ILikeBubbles

Posts: 525; Member since: Jan 17, 2011

so.... im confused on the "mutual beneficial" part of this..

25. Penny

Posts: 1880; Member since: Feb 04, 2011

Microsoft benefits by getting cash. The infringing companies benefit by getting licenses for the patents in questions and are therefore protected from being sued for those infringements. I'm guessing it goes even beyond that and allows the OEMs to use some other patents in Microsoft's portfolio at reduced/no cost.

16. jibraihimi

Posts: 816; Member since: Nov 29, 2011

This is the reson Steve Balmer looks more happy when a new android phone is launched....... Because he's earning more revenue from the droids, than from his own WP7.......... :)

15. gallitoking

Posts: 4721; Member since: May 17, 2011

fandroids get mad because Apple wants their money( by suing).. now.. but is ok for MS to get it in monthly installments...

17. iamcc

Posts: 1319; Member since: Oct 07, 2011

Fandroids get mad because Apple sues to ban, not for money. C'mon gallito. Really?

18. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Maybe if Android would be more "original" instead of copying, well...

21. ILikeBubbles

Posts: 525; Member since: Jan 17, 2011

original like having a pulldown notification bar and live widgets? oh wait.... Apple invented those back in 2000 they just didn't implement them till 2011.... /sarcasm

19. gallitoking

Posts: 4721; Member since: May 17, 2011

look CC Apple will gets its money.. they can get it in a lump sum by suing or in monthy payments by settlement.... they want the money now..... sorry forgat you were an Android user and have to repeat it... keep forgetting

14. InspectorGadget80 unregistered

M$-PATENT TROLL. How can u be so proud of youself M$ when youre just bad as Apple. They might not as well make Android products. This is really pissing me off

13. cdgoin

Posts: 614; Member since: Jul 28, 2010

IF ANYONE saw Windows 6.51 you would know what they are infringing on.. for that matter any of the previous WindowsMobile creations. MS Invented the smart phone when they merged the PDA with the phone in 2000. Everyone forgets that there is a lot of tech patents that different companies have to pay for.. I think Kodak is getting like $1 on any digital camera/smart phone out there because of their patents.

22. dallas90733

Posts: 36; Member since: Mar 06, 2011

CD, I am looking at a a window 6.1-6.5 HTC Mogul and I have my SGSII in my hand, where is the infringe you are referring too? The ONLY two thing these phones have in common is Custom Roms and removable battery..and we all know you ALWAYS have to pull the battery from Microsoft wm-6xx Microsoft should buy back ( FULL PRICE) anyone who brought this junk

10. snowgator

Posts: 3630; Member since: Jan 19, 2011

By the way, it says a lot for the huge cash cow that is Android that manufacturers can sign these types of deals and still make millions off of Android. I cannot wrap my head around these huge numbers.

12. Tux4g63

Posts: 121; Member since: Oct 21, 2011

They are not making as much money as we all think they are. Android is hugely popular with consumers, but that is because a lot of the content is free. It is not a hugely profitable "cash cow" like iOS, and even WP7 apps make more money on average. The manufacturers are taking a hit when they produce Android phones, because margin wise, believe it or not, Android phones still lag behind blackberry devices.

7. palmguy

Posts: 991; Member since: Mar 22, 2011

What ip?

11. drahmad

Posts: 480; Member since: Aug 20, 2011

ip ip

4. bossmt_2

Posts: 459; Member since: Oct 13, 2009

This is what happens when you own a real patent, not hyper vague patents,

3. eddieoliveira

Posts: 9; Member since: Nov 22, 2011

What is the IP from Microsoft that Android is infringing?

2. Azure01

Posts: 127; Member since: Aug 16, 2011

Wow so microsoft realizes how powerful Android is and would rather own it than compete against it...not surprising.

5. Mozarrt

Posts: 301; Member since: Oct 08, 2011

And Google blocking Windows Phone 3rd party apps to use Youtube...not surprising.

6. jellytime

Posts: 135; Member since: Dec 05, 2011

They probably do this so they can use the money to improve wp7.

9. snowgator

Posts: 3630; Member since: Jan 19, 2011

While no one really knows or those that know are not saying, yes most rumors say that the money they get from Android does go to support WP. Would make sense.

1. bloodline

Posts: 706; Member since: Dec 01, 2011

rather that than sueing trigger happy apple

8. snowgator

Posts: 3630; Member since: Jan 19, 2011

And I would be all over praising Apple if they, Samsung, HTC and all the others must hammered out these types of deals.

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