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Microsoft Wants $15 Per Android Smartphone

sfcrazy writes "Microsoft Corp has demanded that Samsung Electronics Co Ltd pay $15 for each smartphone handset it makes based on Google Inc's Android operating system. The software giant claims to own a wide range of patents used in the mobile platform. From the article: 'Samsung would likely seek to lower the payment to about $10 in exchange for a deeper alliance with Microsoft for the U.S. company's Windows platform, the Maeil Business Newspaper quoted unnamed industry officials as saying.'"

56 of 361 comments (clear)

  1. Re:Microsoft Research by grub · · Score: 4, Informative


    You, Microsoft has a huge legal division expert in the following subjects

    - Barratry
    - Intimidation
    - Patent trolling

    ftfy

    --
    Trolling is a art,
  2. Fuck Microsoft Research by airfoobar · · Score: 5, Insightful

    If their R&D is so awesome, why can't they make their own products and not resort to ripping off other businesses to make money?

    1. Re:Fuck Microsoft Research by Virtucon · · Score: 4, Interesting

      You obviously don't understand business nor did you read the article. This isn't a research item this is a patent item. To a company a patent is an asset that can be used in trade or to beat a competitor over the head. Research doesn't necessarily lead to great inventions and what makes us think that Microsoft invented the inventions that they now own? Lots of companies buy and sell patents just like you or I would sell a used bicycle. I have four patents and one, from a job I had more than 15 years ago, has traded hands no fewer than 8 times. Did any of the interceding owners of that patent "invent" anything? No, but they owned the rights to that patent and presumably made money by selling it.

      --
      Harrison's Postulate - "For every action there is an equal and opposite criticism"
    2. Re:Fuck Microsoft Research by WitnessForTheOffense · · Score: 2

      Thank you for pointing out what's wrong with the patent system again.

    3. Re:Fuck Microsoft Research by ceoyoyo · · Score: 2

      They've got decent R&D combined with crap design, marketing and management. Not such an uncommon problem, actually.

    4. Re:Fuck Microsoft Research by Sir_Sri · · Score: 2, Interesting

      They do make their own products. Competing products in fact. Therein lies the problem. Patents exists to provide incentive to research, you get a temporary monopoly on something you develop, in exchange for having developed it. Whether or not that should apply to software in general is an important question, but as it stands today software is patentable. If MS research patents something they own it until the patent expires, and they get to licence it.

      Now, one can argue if patents are too broad, to absurd to apply to software or the like. But if we use the steel analogy. MS is making steel, and came up with a new, better way to make more of it. They patent that technique. Samsung shouldn't be able to just waltz over, copy the design, and implement it themselves and leave MS research unrewarded for the work they did. All the a money (and time) spent on research has real value, and real costs - and if you spent all that money doing research it may take you longer to implement it than a competitor who didn't spend the money on research.

      Make sense? there is a finite puddle of money available, even to MS. If a company spends money on research they own the results of that research and if you want to use those results you have to pay. Or else there would very quickly be a lot less researchers.

      Microsoft has a lot more (or depending on how large you want to count Steve Ballmer, a lot less) wrong with it than mobile patents not capturing market share. WP7 seems to be decent, but late to the game, so you have to use what you can.

      Honestly, if I was MS, I'd be saying 'pay us a licence fee *or* let it boot WP7 along with whatever else you want'. Then it's a matter of getting app makers on board, and giving them the tools to do awesome stuff you can't easily do on droid (which might be more about building one product for desktop and mobile easily than about some specific feature that you can't do on droid).

    5. Re:Fuck Microsoft Research by VGPowerlord · · Score: 2

      Thank you for pointing out what's wrong with the patent system again.

      Sadly, it's still better than copyrights. At least patents expire, even if it is after, what, 20 years now?

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    6. Re:Fuck Microsoft Research by airfoobar · · Score: 3, Insightful

      I do understand business, but I couldn't care less about entertaining big business's patent trolling activities. I also understand that patents (and particularly software patents) have nothing to do with invention or innovation and need to be abolished -- something you illustrated perfectly in your comment.

    7. Re:Fuck Microsoft Research by airfoobar · · Score: 4, Interesting

      Ripping off competitors is what the patent trolls do -- they can't do, so they sue -- just like Microsoft is doing in this case. As for copying IP and waiting to be sued, there's a deeper reason why that happens: it's almost impossible to bring a product to market without infringing dozens upon dozens of completely random patents. Even if you try to play it safe and license some of the patents likely to be used against you, the licensing fees you'd have to pay would almost certainly exceed your entire product development budget! How we can expect small startups to survive in this environment is totally beyond me.

    8. Re:Fuck Microsoft Research by airfoobar · · Score: 4, Insightful

      I'm not sure if you are agreeing with me, but as far as I'm concerned the problem is, a patent does not mean anyone innovated, even the original owner of the patent. Patents are just a way to block competition and extract rents for trivial and vague "generalities" (like you say in your comments). This can't be good for anyone except the big-business rent-seekers; certainly not good for new entrants and the consumer.

    9. Re:Fuck Microsoft Research by TheRaven64 · · Score: 2

      The problem is derived works. If you create something with a mickey mouse image on it now, it's a derived work of something that is under copyright, so you must pay Disney. If the old Mickey Mouse stuff goes out of copyright, then they'd have to prove that it was not a derivative of the original images (which would be fine). No, it's not a good reason for the perpetual copyright, but it's why Disney wants it.

      --
      I am TheRaven on Soylent News
    10. Re:Fuck Microsoft Research by jedidiah · · Score: 2

      > Prior to patent every company kept its own in house guarded secrets which they literally had to write special rules to guard

      Companies still have that. They have that for things that they don't want an expiring patent on.

      The problem with patents, is that most of them are not terribly inventive. The net "social cost" of the pre-patent situation is far less destructive than the actual current patent system. The entire industry for the most part would be far better off if they could simply re-invent everything they need inhouse. This is generally how it's done anyways since patent searches are a bothersome waste of resources that only increase your liability should you be found to violate a patent.

      FAT is essentially a "file format" as is any other file system. Patents on those simply should be illegal. People's data should not be held hostage by a monopoly.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    11. Re:Fuck Microsoft Research by airfoobar · · Score: 2

      Is it more logical to say "We've done lots of unrelated R&D, so we are entitled to profit from other people's successes"? If you look further down in the comments you'll see what sort of patents Microsoft is suing with and you can decide for yourself who the thieves are.

    12. Re:Fuck Microsoft Research by Mitiaj · · Score: 2

      There was absolutely no MS research for Kin.
      Kin software was developed by Danger, Inc. and was called Sidekick before the Danger was acquired by Microsoft in 2008 for 500M$. The original development team was pushed out by internal MS bureaucracy and replaced by their buddies, who killed the project.

      As far as I know MS research division is a joke. It’s main purpose is to search for a promising start-ups to acquire

  3. Windows Phone by FrankSchwab · · Score: 5, Interesting

    How much does Microsoft want to license Windows Phone OS? My understanding is...around $15.

    So, $15 to license Windows Phone 7 with a bunch of software that Microsoft paid to develop and has to maintain along with patent licenses, or $15 to license Android that doesn't contain a single line of Microsoft code but needs the patent licenses? I'm sure their patents are worth something, but this seems a wee bit overpriced.

    --
    And the worms ate into his brain.
    1. Re:Windows Phone by Locutus · · Score: 4, Interesting

      I believe this is some of Barnes and Nobels defense. ie they are asking more than it costs to license their entire OS stack so therefore it is an unreasonable license fee and is designed to block use of the software( Android ). Blocking can bring them back into court for anti-trust. Remember, they are associating WP7 with both Xbox and other Microsoft services and software.

      no doubt many have already decided to give Microsoft the money instead of fighting them and only a very few are fighting. Too bad those fights will be dragged out for years.

      LoB

      --
      "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
    2. Re:Windows Phone by surmak · · Score: 4, Insightful

      I wonder if there are antitrust implications of licensing the patents for that same price that they sell the software for.

    3. Re:Windows Phone by oakgrove · · Score: 5, Funny
      WP7 Mango Edition...

      Android's features from a year ago...coming in only four months from now! I'm so excited! I just love nostalgia.

      --
      The soylentnews experiment has been a dismal failure.
    4. Re:Windows Phone by surmak · · Score: 2

      My point was that Windows license includes a patent license as well. If the patent license is the same prices as the Windows+patent license, then they are pricing Windows at $0 over the underlying patents. (Assuming that Windows uses the same patented tech that Android does, which given the nature of the products is quite likely.) This does not pass the anti-trust smell test IMHO.

  4. Thickets of Patents all litigated in East Texas by Virtucon · · Score: 4, Insightful

    Eventually this will wind up with either Samsung entering a "mutual" royalty agreement where undisclosed patents are licensed by guys in trenchcoats, on a bridge, in fog.

    Or, they'll go into court and to to patentville USA Marshall TX where every scumbag patent thicket group brings their IP litigation. It's friendlier in East Texas y'all.

    It's the cost of doing business I guess.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
    1. Re:Thickets of Patents all litigated in East Texas by deadhammer · · Score: 3, Insightful

      There's a solution to this, of course: refuse to do business in Marshall, TX. Don't open stores there, don't sell phones there, don't allow people with IP addresses from that range into your app store, and insert a catch-all clause in your EULA that you don't support users from Marshall. That way you've removed yourself from their jurisdiction and you can't be sued there. Repeat with each new lawsuit haven that springs up.

      --
      I'll be honest, we're throwing science against the wall to see what sticks. -Cave Johnson
  5. So by Colin+Smith · · Score: 5, Funny

    They really do lots of research, and should enjoy the results aswell.

    Why did they put these benefits in Android and not in Windows?
     

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    Deleted
  6. An Open Letter by Eldragon · · Score: 2

    Dear Microsoft, you don't innovate by rent-seeking. This is why no one cares what you are doing anymore. You have become irrelevant, like the other tech giants before you.

  7. What exactly are these patents? by Archtech · · Score: 4, Insightful

    Does anyone know exactly what Microsoft's patents involve? Without knowing that, it's hard to make sense of any of these stories.

    Based on the published newspaper articles so far, though, I must say it looks as if patent law is being used to accomplish the exact opposite of its supposed intent. Rather than guaranteeing an inventor the sole enjoyment of revenue from its innovations for a period, it is being used by a company that is not a serious player in the market to impede others from selling their products - and to give it a substantial stream of wholly unearned revenue.

    --
    I am sure that there are many other solipsists out there.
    1. Re:What exactly are these patents? by GNUman · · Score: 4, Informative

      Patents are mentioned and refuted in Barnes & Noble's response ( http://www.groklaw.net/pdf2/MSvB&Nanswer.pdf ).

      They include:

      (in parenthesis: page and paragraph in document where validity of patent is put in question)

      Patent 5,778,372: "Remote Retrieval and Display Management of Electronic Document with Incorporated Images". This refers to loading the text of a web-page before the background image. (page 16, paragraph 33)

      Patent 6,339,780: "Loading Status in a Hypermedia Browser Having a Limited Available Display Area". This basically treats putting the "Loading" message inside the page area instead of the toolbar. (page 16, paragraph 32)

      Patent 5,889,522: "System Provided Child Window Controls". (page 17, paragraph 34)

      Patent 6,891,551: "Selection Handles in Editing Electronic Documents". (page 17, paragraph 35)

      Patent 6,957,233: "Method and Apparatus for Capturing and Rendering Annotations for Non-Modifiable Electronic Content". (page 17, paragraph 36)

      Patents 5,579,517 and 5,758,352. Dealing with file name compatibility between different OS (page 14, paragraph 29)

      Patents 6,791,536 and 6,897,853. Simulating mouse inputs without a mouse (page 15, paragraph 30)

      Patent 5,652,913. Shared data structure for storing input/output data (age 16, paragraph 31).

  8. Re:Microsoft Research by oakgrove · · Score: 2

    Which of the patents in question are both a result of something dreamed up in MSR and something not so obvious that it hasn't been co-invented multiple times elsewhere? Oh, you don't know. Because, the patents in question haven't even been revealed since the licensees are under NDA. So, basically, you just threw a bunch of blather on the screen as fast as your fingers could hit a ctrl-c and a ctrl-v. Or do you just have those combo's hotkeyed to your mouse or something?

    --
    The soylentnews experiment has been a dismal failure.
  9. Re:Microsoft Research by __aamnbm3774 · · Score: 2

    It probably BSOD'd.

  10. Re:Microsoft Research by oakgrove · · Score: 4, Insightful

    Yeah, because surely Slashdot doesn't have hundreds of thousands of unique visitors some of which hold the former view and some of which hold the latter. It's just one guy in his basement. And you. And me.

    --
    The soylentnews experiment has been a dismal failure.
  11. Re:Stop this american madness, fight patents! by eldepeche · · Score: 2

    *wank sign*

  12. Re:Microsoft Research by Stormwatch · · Score: 5, Insightful

    No. No one has. Patents are a scam, a hindrance to innovation and the free market. They must be ABOLISHED.

  13. Why does google just sit idly by? by bogaboga · · Score: 2

    One thing that makes me really sick is to see a [powerful] company like Google sit idly by and simply watch trolls like Microsoft smear the Android OS.

    Does Google think Microsoft's actions elevate Android's profile?

    This is what I would do if I were Google:

    Change Android's licence to at least require that any patent agreement entered into by an Android licensee with parties like Microsoft particularly pertaining to Android's 'infringements' be made public at least as far as what patents are involved.

    Is this too much to expect?

    1. Re:Why does google just sit idly by? by JAlexoi · · Score: 2

      They are selling enough devices without the US market. Just show MS the middle finger and not sell any devices to US. Or charge all of the patent license $$$ to US customers only. I mean, why should I pay for a foreign broken patent system?

  14. Re:Microsoft Research by cjb658 · · Score: 4, Funny

    I think I recall that site. It said that Microsoft's only innovation in user interfaces was the combo box -- which is a terrible design.

    Like the one used to assign mod points? Oh, the irony!

  15. Re:Fight! by erroneus · · Score: 3, Interesting

    Yes. This seems like a reasonable business choice. $15 is a ridiculous figure. I have heard that figure is what Microsoft charges for their own mobile OS. This certainly doesn't seem to be "reasonable and non-discriminatory" licensing. I say fight too. Also, it's a little entertaining to see all the crap go down as it has been. There seems to be a massive increase in [software] patent litigation and I have to wonder when everyone playing the game will finally realize we are all better off without it.

  16. Re:Microsoft Research by tycoex · · Score: 2

    I see a lot of people bashing Apple for patent trolling just as much as Microsoft. Sure there's a few Apple fanbois who think Apple can do no wrong, but it seems most people dislike Apple and Microsoft both.

  17. Re:Microsoft Research by MobileTatsu-NJG · · Score: 4, Insightful

    So when Apple sues Samsung, everyone cheers and claims Apple has every right to defend it's patents.

    Where was this? Around here the torches and pitchforks were waving about how you shouldn't be able to protect 'look and feel'.

    There's plenty of hypocrisy here, you just found the wrong example.

    --

    "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

  18. Re:Microsoft Research by oakgrove · · Score: 4, Interesting

    I'm more inclined to believe Slashdot gives IBM a pass is because, unlike MS, they don't have an arrogant jackass for a CEO that goes around laughing at their competitors and intentionally crashing competitor's products at trade shows. The guy is a no-class buffoon. That's probably got a little something to do with why Slashdot seems to have a collective chip on its shoulder towards MS vs other mega-corps.

    --
    The soylentnews experiment has been a dismal failure.
  19. Re:Microsoft Research by MightyMartian · · Score: 5, Insightful

    It's a game of poker. You have to pay to play.

    Here's what I think. If any patents used to make such threats turn out to be bad or unsupportable, they get converted to charges of extortion.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  20. Re:Microsoft Research by oakgrove · · Score: 2

    Fix what? It's a troll because it is. Everybody MS has licensed its patents to so far in the Android space is under NDA so there is no way the OP could know if the patents in question are from MSR or the man in the moon. He just copy-pasta'd a bunch of crap to get first post and kick off the comments with some pro-MS blather.

    --
    The soylentnews experiment has been a dismal failure.
  21. Devil's Advocate by pavon · · Score: 3, Interesting

    If Google is allowed to make Android available to anyone for free, then why shouldn't Microsoft be allowed to competitively price their mobile OS at $0 as well? From that point of view it costs $15 for the mobile patent licenses either way, and WP7 is thrown in for free.

  22. Re:Welcome to Phase 3. by ErikZ · · Score: 3, Funny

    How do you know being a racist that sleeps with underage women isn't the height of enlightenment or saintly behavior?

    --
    Democrats or Republicans. They are both taking us to the same place and they are not afraid of us anymore.
  23. Re:Microsoft Research by geekoid · · Score: 2

    Except at, you know, the patent office; which has a huge online searchable index. I will make the wide assumption that google is aware of the internet, patents, and searching things on the internet.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  24. Re:Microsoft Research by digger1985 · · Score: 5, Informative

    How about Jobs deliberately misquoting Samsung even after Samsung had publicly corrected it? http://blogs.forbes.com/elizabethwoyke/2011/03/02/oops-steve-jobs-misquotes-samsung-at-ipad-2-event/ How about Jobs laughing at their competitors and calling them copy cats? http://crave.cnet.co.uk/laptops/steve-jobs-slams-android-samsung-and-ipad-2-rivals-as-copycats-50003016/ AND then going ahead and blatantly copying Android notification system. Yep, year of the copy cat it is. Except this time it's Apple doing the copying.

  25. Re:Fight! by Shotgun · · Score: 2

    But you have to look at the downside for Samsung if they win. They open the door to the idea that these patents are just hogwash, and then patents start getting invalidated all over the place. The next thing you know, new companies, little bitty upstarts that aren't even public companies listed on a valid exchange, are able to compete in the market. Big companies don't have a "patent club" to beat them down with anymore.

    Samsung won't have any of that.

    --
    Aah, change is good. -- Rafiki
    Yeah, but it ain't easy. -- Simba
  26. Re:Microsoft Research by jojoba_oil · · Score: 2

    I think I recall that site. It said that Microsoft's only innovation in user interfaces was the combo box -- which is a terrible design.

    Terrible design... Except when used in browsers with search suggestions and possible URL matches.

  27. Re:That is a lot of money for little value by geekoid · · Score: 2

    mmm, I would prefer the complete removal of software patents. The way software is developed, they thought process, the community. A;; this are different from software then hardware. Plus, hardware is dependent on software, so removing software from the patent process in no way inhibits it's innovation.

    It should fall under copyright.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  28. Re:Microsoft Research by jo_ham · · Score: 2

    Because "making a profit" and "suing a competitor who ripped off your design (allegedly)" are not mutually exclusive?

  29. Re:Microsoft Research by elsurexiste · · Score: 2

    Research labs always marvel me because of this strange dance that they do with patents and science. I've worked with people from IBM Research, I can see now what's in a patent. After this disclaimer, I'm clear to go :) -> This is my opinion and does not necessarily reflect the one from my employer.

    Patents are, at least in principle, a great weapon against industrial espionage. They work by, ironically, publishing your secrets to the world and gaining, in exchange, a monopoly on the design. But you *have to* have a design, otherwise the system just doesn't work. Those big companies don't patent every single dreamed idea, otherwise the problem today would be immensely worse: we would be drowning in an almost-literal patent sea, and the system would have collapsed on its own weight a few years ago (which hasn't happened). So, instead, there's the situation we have now, more or less workable.

    A common workflow: you do R you know some idea is either viable or not (although you work on something that looks worthy, the project cemetery is quite big :) ); assuming that you found something useful, you submit your project to a few people, from now on the Great Old Ones (once, I was one of them :) ); assuming that your project is cool enough (it's not blatantly obvious, it's novel, it's useful, it can make money some way, you have means to know someone is infringing your patent and protect it, etc.), the Great Old Ones may or may not decide to pay the cost of a patent for your project.

    So, what should be the norm, at least from the point of view of those corporations? Before you work on something you check the bloody patent index. If you find something related to whatever you want to do, either build something slightly different, or sign a contract with the pricks that got there first (if it's a great idea, someone's bound to come up with the same thing; sadly, that someone was you).

    There are a few problems today. Patents trolls (which exist), patent litigations (which are proliferating), abusive patent royalties (which leave the little ones behind), ambiguous filings (which I, I'm afraid, can't offer a solution for, because language is ambiguous by definition). A solution would be to impose a fixed royalty (assume 0.5 % of total related sales) to be paid to the owner company, cheaper patent registration fees, and shorter patent duration (essentially, I'm proposing devaluing the whole thing). A possible alternative for this solution that would work really well with copyright is a quadratic-growing year-to-year fee (cheap to buy, expensive to keep year-to-year, and after you stop payments it's on the public domain).

    --
    I rarely respond to comments. Also, don't ask for clarifications: a brain and Google are faster, believe me!
  30. Re:Microsoft Research by Runaway1956 · · Score: 2

    If you're the only person who holds a point of view, in a sea of people with various opposing opinions, that doesn't necessarily mean that you are wrong. But, it DOES mean that you might benefit from reexamining your position.

    Software patents are simply WRONG. Microsoft wants to raise the Microsoft Tax, and extend it to places where they can't compete at all, let alone directly. "If you use ANY computing device, you must PAY US!"

    Simple bullshit.

    --
    "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
  31. Re:Microsoft Research by jedidiah · · Score: 4, Informative

    The fact that something is re-invented multiple times in isolation is the very definition of obvious.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  32. Re:Microsoft Research by oakgrove · · Score: 2
    Three words:

    "Developers, developers, developers."

    --
    The soylentnews experiment has been a dismal failure.
  33. For the love of Mike, what are the Patent Numbers by hunangarden · · Score: 2

    Can't for the life of me find out what Patent numbers Microsoft owns here that are "part of" Android phones. What exactly is Samsung supposed to be licensing here???

    Someone please help a poor Google weary fool.

  34. Re:Microsoft Research by Mitiaj · · Score: 2

    It seems not all results are enjoyable. Many companies do a lot of research, but do not enjoy the results as well.
    I guess one has to add something else to the mix, e.g. big money, army of lawyers and pocket government.

  35. Re:Microsoft Research by freman · · Score: 2

    Here's the thing - When Apple sues to defend it's patents - it lists them, usually with evidence...

    When Microsoft intimidates to get licensing for it's patents it doesn't - it's a protection racket, ye-olde mob style "Pay your insurance and we'll make sure you don't get beat down" - When Microsoft actually starts listing the patents it's licensing then I might support them more but in the mean time I want Samsung to stare them down.

  36. Re:Fight! by shutdown+-p+now · · Score: 2

    This certainly doesn't seem to be "reasonable and non-discriminatory" licensing.

    Note that RAND is not a legal requirement for patents.

    (though perhaps it should be)

  37. Re:Microsoft Research by Stormwatch · · Score: 3, Informative

    Why? It's a fact, patents hinder innovation -- history shows that.