Microsoft To Charge Phone Makers a Licensing Fee
angry tapir writes "Microsoft may be one of the only remaining mobile operating-system providers that charges handset makers a licensing fee, but in exchange vendors get at least one important benefit: protection from intellectual property worries. 'Microsoft indemnifies its Windows Phone 7 licensees against patent infringement claims,' the company said. 'We stand behind our product, and step up to our responsibility to clear the necessary IP rights.'"
In related news, Windows Phone 7 will be exclusive to AT&T at launch, and it seems Microsoft is counting on Xbox Live integration to be the "hook" that gets people interested in the new devices.
One of the reasons why big business loves Windows and isn't that interested in Linux other than maybe Red Hat is because if things go horribly wrong, there's somebody with deep pockets to sue. What Microsoft is offering here is a classic part of their business plan... if somebody comes up with a submarine patent they'll take the legal pain so their customers don't have to.
Remember the lesson of SCO and Darl McBride.... even though the claims had no legal merit, they still were messy enough that it was cheaper to pay the settlement price than fight them and win the case. When faced with such a problem, any sane business man will take the less expensive option even if it's not the one that's good for the world.
So, this license fee can be seen as an insurance policy against such patent claims that could bite the handset maker for a mistake the software writers made.
A quick search revealed that at least one embedded Linux vendor offers this too without per-phone royalties:
"Meanwhile, MontaVista added that it protects its customers from technical and legal risks through warranties on all editions of MontaVista Linux and indemnification against claims involving the code it creates and delivers."
Just more FUD IMHO
Maybe a few hobbling along on their anaemic server products.
No one takes their smartphone OS seriously.