Microsoft Continues to Profit on Android; New Licensing Deals with Acer and Viewsonic

[dgstorm]

According to a new report, Microsoft can now add Acer and Viewsonic to their growing list of Android manufacturers that have to pay Microsoft a licensing fee for every Android device they make. Here's a quote from the BGR article with some more details,

The deal also covers any forthcoming devices powered by Google’s Chrome OS. “We are pleased that ViewSonic is taking advantage of our industrywide licensing program established to help companies address Android’s IP issues,” reads a statement from Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft. “This agreement is an example of how industry leaders can reach commercially reasonable arrangements that address intellectual property.” Pleased indeed. An identical statement was also issued regarding the Acer agreement.

The article also indicated that Microsoft may well be making three to five times more from their Android licensing than they do from their own Windows Phone 7 mobile OS.

It's easy, initially, to look at this situation as a good example of how the patent legal system could work instead of the harsh "stop now" method that Apple is using against every company under the sun. However, the reality is that these Microsoft licensing deals are really only a "lesser of two evils." The problem is that this behavior stifles innovation as well. If a smaller company wanted to break into the Android market to take advantage of its "mostly open source" nature, the threat of having a large portion of their margin & profits siphoned off by Microsoft would make most companies think twice, and probably give it a pass. In the long run, this is bad for innovation and bad for the consumer. Ultimately, the patent system needs to be reworked to accommodate the mercurial nature of the unprecedented and unpredictable technological advances in the 21st century.

On a side-note... I am not sure why BGR included this picture of 'Andy' with this article, other than it depicts the little Android alone in a big world, but I liked the pic and thought I would include it too, even if it is only marginally related to the story.

Source: AndroidTablets.net via BGR

 

[Tuktanuk]

"Microsoft may well be making three to five times more from their Android licensing than they do from their own Windows Phone 7 mobile OS. "

Anyone else the slightest bit surprised with this!?

 

[johnomaz]

I have no issue with the licensing agreements. They are properly licensing patents from other companies. Its how it should be done. Apple on the other hand doesn't do it and lets products be on the market for a while before they fire up the lawsuit engine.

 

[jroc]

"Microsoft may well be making three to five times more from their Android licensing than they do from their own Windows Phone 7 mobile OS. "

Anyone else the slightest bit surprised with this!?

lol!!... Not really. They've already been doing this with HTC for some months now. Its not even surprising that they're making more money off HTC than their entire WP7 line up. . I asked one time at another site, when does MS putting money into WP7 becomes wasting money? They should just dump it and live with these licensing deals.

Or wait to see what happens after Nokia's WP7 phone's been out for a few years. If it still isnt looking any better after that...dump it. I would also say maybe they hope Android gets sued into oblivion so WP7 can get more attention....but Android is a money maker for MS right now...lol Hell, dump WP7 and work with Google on Android. Of course that's just a daydream..

 

[johnomaz]

lol!!... Not really. They've already been doing this with HTC for some months now. Its not even surprising that they're making more money off HTC than their entire WP7 line up. . I asked one time at another site, when does MS putting money into WP7 becomes wasting money? They should just dump it and live with these licensing deals.

Or wait to see what happens after Nokia's WP7 phone's been out for a few years. If it still isnt looking any better after that...dump it. I would also say maybe they hope Android gets sued into oblivion so WP7 can get more attention....but Android is a money maker for MS right now...lol Hell, dump WP7 and work with Google on Android. Of course that's just a daydream..

From what I remember, Android and iOS weren't that great when they were first released. Remember the days of no copy/paste. That in itself should have been a no brainer, but both OSs left it out. The problem Microsoft is facing is that they came in at a time when people were locked in contracts with an iOS phone or an Android phone. Users get used to what they are using and won't switch very easily. Since they came in so late too, people are quite comfortable with what they have. I'm a rather big techie and I can't see myself using WP7 because I have no intention of getting locked into a phone that I don't like for any amount of time. It took me a while to get rid of my iPhone for my DroidX because of how weary I was about Android. I heard good things, but also bad things and it turned out to be the hardware of the DX that I wanted. In the days of iOS 2.0 and Android cupcake, both OSs weren't that feature rich, just like WP7 is now. give it time, It will grow and improve. Frankly, I think they have a good market to hit and that is young people that don't have the $$$ for an iPhone and dont' want an Android phone because its not trendy. Nokia might just give them that crowd.

 

[Tuktanuk]

From what I remember, Android and iOS weren't that great when they were first released. Remember the days of no copy/paste. That in itself should have been a no brainer, but both OSs left it out. The problem Microsoft is facing is that they came in at a time when people were locked in contracts with an iOS phone or an Android phone. Users get used to what they are using and won't switch very easily. Since they came in so late too, people are quite comfortable with what they have. I'm a rather big techie and I can't see myself using WP7 because I have no intention of getting locked into a phone that I don't like for any amount of time. It took me a while to get rid of my iPhone for my DroidX because of how weary I was about Android. I heard good things, but also bad things and it turned out to be the hardware of the DX that I wanted. In the days of iOS 2.0 and Android cupcake, both OSs weren't that feature rich, just like WP7 is now. give it time, It will grow and improve. Frankly, I think they have a good market to hit and that is young people that don't have the $$$ for an iPhone and dont' want an Android phone because its not trendy. Nokia might just give them that crowd.

I respect that fact that Microsoft was late to the party, I really do... I also understand that the whole "in contract" thing hurt them further. YES! people get used to a certain thing and really don't like to deviate unless it's something Stellar. Time has moved along and still Microsoft cannot seem to claim more users. Part of this is a comfort thing; while on the other hand, People just have not seen much to make them want to switch. This is where it's smart business for Microsoft to be pulling $$ in from licensing. I've played around with a Windows phone and I can tell you this; I hate that worse than I hate Moto Blur which; I did not think would be possible. Now, this is my opinion but, many must feel the same way. Microsoft either needs to really improve it or leave the party.

 

[gravebelly]

I think MS will break through with windows 8 and windows 8 tab recently annouced. I would never consider MS out of the market. MS helped apple from going bankruptcy 14 years ago this October. People can hate MS but I think they will find a niche in the market and catch on.

 

[sb1831]

At least Microsoft is giving manufacturers the opportunity to use the Android OS as opposed to simply suing them for using their IP. I think if anything, the chance to use the OS at a cost would bring more potential handsets to the table seeing that a company can go as far as developing a working handset running the OS and see if it's feasible to begin with. Otherwise, the manufacturer is forced to spend even more money on R&D to develop their own OS, or pay someone to use theirs either of which could be exponentially more expensive.

 

[Tuktanuk]

At least Microsoft is giving manufacturers the opportunity.

That's how far I made it before I said ooh a slam on Apple. LOL good post.