Microsoft Signs Android Deal With Samsung
Microsoft announced on Wednesday that they have signed a cross-licensing patent agreement with Samsung for all its Android powered devices which ends their patent dispute.
The deal is part of a raft of quirky deals where Microsoft actually makes a profit from the sales of almost all Google Android mobile phones.
It all comes down to the intellectual property rights that Microsoft owns and that Samsung, obviously, infringes.
Microsoft has similar agreements with Acer, Viewsonic and HTC – and will now add Samsung to the growing list.
While Microsoft’s protection of intellectual property seems to be working; with both the parties coming to an agreement – it’s a stark contrast to Apple’s suing and banning mentality.
Apparently Samsung will have to pay $12-13 to Microsoft – with HTC paying $10 per handset sold.
Google and Samsung won’t like this deal, but it’s a massive win for Microsoft as they now have Google’s Android where they want – under their thumb.
Of Android’s “big three” the only manufacturer who does not have an intellectual property deal with Microsoft is Motorola.
Microsoft’s Windows Phone Division President, Andy Lees, said: “Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality. Microsoft believes in a model where all our partners can grow and profit based on our platform.”
Samsung’s mobile devices global marketing VP Dr. Won-Pyo Hong was, on the face of it, pleased with the new deal: “Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry. 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.”
Where this leaves Microsoft is an interesting one; they’re now hedging a bet on both the success of its own platform, Windows Phone, but, and most importantly, Google’s Android.
They’re actually making 3 times as much money through Android than it does from its own Windows Phone platform.
There’s now doubt that it’s a respectable amount of money for Microsoft, but can they really play devils advocate to the detriment of their own mobile platform?