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.
Microsoft has never not charged a license fee. It's pretty steep too.
But they keep pushing this indemnification clause as if it provides some kind of true advantage. It does not. First, it only covers the technology in the OS which MS would necessarily have to protect itself from anyway. Second, if a handset maker were to get sued and lose, they would in turn sue MS for damages. And finally, no one has successfully sued a handset maker for infringed patents in operating systems like Linux.
What this tells me is that they haven't changed their selling strategy one bit, and they haven't got the slightest idea how to change it. Whoever is in charge of their mobile division needs to be replaced. They have a technology that is late to the game and a selling strategy that is worthless to anyone with any experience with other operating systems.