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Thread: Microsoft Will Soon Begin Receiving Royalties From Samsung on Android Devices

  1. Editor in Chief
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    #1

    Microsoft Will Soon Begin Receiving Royalties From Samsung on Android Devices


    Microsoft and Samsung have entered into a new cross-licensing agreement that will not only allow the two companies to "share" their patent portfolios, but will also allow Microsoft to earn royalties from Samsung for all their Android devices. This is a similar situation that has been happening for sometime, in which Microsoft earns licensing fees from Android OEMs, like HTC and others. The primary difference is that Samsung appears to be gaining more than some of the other companies in this same situation with a more lucrative cross-licensing deal. There were no specifics given as to the amount that Microsoft will make from each device, but realistically speaking, MS stands to make a huge amount of money from this new deal. This kind of deal seems like a win-win situation. It's a shame that Apple doesn't seem to want to follow this example. Here is the press release:
    Microsoft and Samsung Broaden Smartphone Partnership

    Agreements mark new initiatives to promote Windows Phone and share intellectual property.

    REDMOND, Wash — Sept. 28, 2011 — Microsoft announced today that it has signed a definitive agreement with Samsung Electronics Co. Ltd., to cross-license the patent portfolios of both companies, providing broad coverage for each company’s products. Under the terms of the agreement, Microsoft will receive royalties for Samsung’s mobile phones and tablets running the Android mobile platform. In addition, the companies agreed to cooperate in the development and marketing of Windows Phone.

    “Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality,” said Andy Lees, president, Windows Phone Division, Microsoft. “Microsoft believes in a model where all our partners can grow and profit based on our platform.”

    “Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” said Dr. Won-Pyo Hong, executive vice president of global product strategy at Samsung’s mobile communication division. “We are pleased to build upon our long history of working together to open a new chapter of collaboration beginning with our Windows Phone “Mango” launch this fall.”

    Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at PressPass Redirect. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at Microsoft Public Relations Contacts.
    Source: GalaxyForums.net via DroidMatters
    Last edited by dgstorm; 09-28-2011 at 11:35 AM.
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  3. UNC
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    Android is getting too expensive for the OEM's now. If/when Oracle beats down Google you will have HTC and Samsung paying MS and all of the OEM's paying Oracle. We already know that HTC pays MS anywhere from $10-15 per device!!!

    If Apple wins it's case against Samsung and gets $10-15 per unit (like MS deal with HTC) and Oracle wins it's case (possibly another $10-15 per unit) you are looking at $20-30 right off the top. Now the "free" android, isn't so "free", and OEM's such as Samsung will be looking for a "better" (cheaper) partner, Android COULD be in trouble.

    Let's say worst case scenario Samsung has to pay $30 per unit, and MS offers the license for WinMo7 for $10 a unit... What do you think is going to happen?
    You call me names, I call your Mom!!
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    MS should just get rid of WP7....and continue making money off Android. And what in the world does MS has that these companies are paying for??? I would really like to know. We know all the ins n outs of Apple's patent issues....what does MS have?
    Last edited by jroc; 09-28-2011 at 01:14 PM.
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    It's ironic that competition is supposed to keep prices down yet all this license and patent nonsense is counteracting that. I mean do other tire manufactures like Bridgestone and Goodyear fight over tire design patents and licensing? Do Duncan and Krispy Kreme duke it out saying, "Your product looks to similar to my product"? Honestly this whole licensing crap is getting ludicrous and stale.

    “Innovation is not the product of logical thought..." ~Albert Einstein
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