Samsung agrees to pay Microsoft, Microsoft get’s $444 million from Android
Microsoft’s been having a great week. First they release their Mango Update aka Windows Phone 7.5 to rave reviews from all critics (including us) and now they’ve just scooped up some major royalty payments from Samsung. Yep, basically from now on any Android device that Samsung gets sold (it’s not clear if Microsoft will want payments on the previously sold devices), $5 to $15 will head towards Microsoft for the ‘privilege’ of selling Android devices. Following their similar deal with HTC, in which we also learnt that Microsoft makes more from Android than Windows Phones, they’ve also convinced Samsung to follow suit. It’s also been estimated that Microsoft might make as much as $444 million from Android royalty payments. Wow. That’s still a huge number from a rival operating system, regardless of what Business Insider says.
Considering that together, HTC and Samsung sell most of the Android phones in The United States, we’re pretty sure this is an absolute winning deal for Microsoft. The reason? Microsoft apparently have a huge patent chest in which they’ve found that all Android devices infringe on those patents, so they have no choice but to enter the deal.
Google on the other hand are not happy about this, and they’ve got every reason not to be! They had this to say –
This is the same tactic we’ve seen time and again from Microsoft. Failing to succeed in the smartphone market, they are resorting to legal measures to extort profit from others’ achievements and hinder the pace of innovation. We remain focused on building new technology and supporting Android partners.
Fair enough, but if you’re infringing on Microsoft patents, you’ve got no reason to complain. Either way, we’re happy Microsoft and Samsung have settled this out of court, especially since Samsung is such a big player for Microsoft’s Windows Phone OS. Though we do have to note, that if Samsung agreed to pay the royalty fees, then clearly there’s something there that’s being infringed and that soon every Android OS user (manufacturer) could be paying Microsoft.