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Microsoft finally pushing Samsung on Android royalties

updated 08:15 am EDT, Wed July 6, 2011

MS faces resistance on Samsung Android payments

Microsoft is finally pushing Samsung in its attempt to collect patent royalties from every Android manufacturer, according to leaks from the Korean media. The Maeil Business Newspaper understood that Microsoft was trying to get $15 for every Android device Samsung makes. The company was reportedly hoping to lower that royalty down to $10 in return for providing stronger support for Windows Phone.

Neither Samsung nor Microsoft commented on the claims.

The request would be a rare one for Microsoft. Most of its campaign has targeted smaller companies that either supply Android manufacturers or only use Android for their mobile hardware, such as Barnes & Noble or Velocity Micro. Conspicuously, Microsoft has usually avoided targeting its Windows Phone partners, such as Dell and LG, even when they make most of their revenue from Android hardware.

Microsoft does collect Android patent royalties from HTC but is widely known to be charging less than for others since HTC is also a Windows Phone partner. If the claims are accurate, Samsung may be counting on similar loyalty after having some of the most important Windows Phone devices, like the Samsung Focus. That it didn't get an automatic break may be an indication of Microsoft's unhappiness with Samsung's sheer importance in Android with the Galaxy S and Galaxy Tab lines.

Critics have accused Microsoft of using lawsuits as a substitute for fair competition and have drawn parallels to the American company's behavior in the pre-antitrust days, where it required that companies charge for a copy of Windows on every PC even when it was using Linux or another rival. Early looks have suggested it's actually making more from royalties on Android than sales of WP7 hardware. Patents give Microsoft a safer platform to make its case than what it had in the 1990s but also haven't been seriously challenged in court so far.

by MacNN Staff



  1. mytdave

    Joined: Dec 1969



    When is someone going to stand up to M$ and tell them to go eat cake? This is almost exactly like the company's behavior in the pre-antitrust days. Since the anti-trust case against M$, it has been determined that this behavior is illegal. Have we forgotten so quickly?

  1. wrenchy

    Joined: Dec 1969


    Could you imagine...

    If Microsoft had to make money on their own mobile OS?? They would starve.

  1. Arne_Saknussemm

    Joined: Dec 1969


    Well, this is possibly the worst...

    place to say this, but Windows Phone 7 is actually kind of cool. To take a picture you just press the dedicated camera button, no need to unlock the phone or find the camera application. h***, you can even dial by voice from the lock screen.

    And with Nokia building the hardware, you can be sure there will not be ANY antenna death grips, and of course the cameras will blow away anything on the market.

    Check out the N8, It's almost a year old, yet it has one of the best cameras (still and photo) there are. Plus it has and FM radio receiver and Transmitter as well (just beam your media to any nearby FM radio)...

    Competition IS GOOD - The future is getting more interesting by the minute. This year Apple appropriated Android's widget, wonder what new enhancements Steve will steal (sorry - borrow) from Microsoft by then...

    Apple is already paying Nokia for the use of it's patents, so in a way Steve is already paying Microsoft!

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