Microsoft Now Collects Royalties From Over Half of All Android Devices
An anonymous reader writes "Microsoft has inked a deal with Compal Electronics, which pumps out gadgets that run Android and Chrome OS, for an undisclosed sum."
Microsoft has an explanatory weblog post; with this deal over half of all Android devices are licensing patents from Microsoft. Notably refusing to cooperate and instead opting for the court battle route are Motorola and Barnes and Noble.
I guess it's more cost-effective to shakedown directly than using SCO as a proxy.
Android the free OS. Heh heh!
(Posting AC because I'm at work)
Those that are choosing to go the "fight it in court" route are probably making a very bad decision. First, the other manufacturers likely didn't just roll over and pay up for shits and giggles - the likely did so because there's something there. Second, and more relevantly, the fact that so many manufacturers are willing to voluntarily pay licensing fees for the patents Microsoft is wielding makes it very likely the court is going to side with them over a small handful of companies who think they're wrong. I predict this is not going to end well for companies like Motorla and B&N...
I cant help drawing parallels to the Novell agreement where Microsoft in practice paid Novell hefty sums to keep going in Microsofts direction, focusing on MS technologies and products.
Would anyone except Nokia keep churning WP7 phones out when it still, one year after release has not gotten more than 0,3% of the market? I strongly suspect Samsung, HTC etc in reality gets paid for using WP7 and dont pay a dime to use Android. Ofcourse on paper they pay Microsoft for licenses, but then they get that money and ten times more back in the form of marketing contributions for WP7.
Just as with Novell that is.
HTTP/1.1 400
Fairly good article explaing the Royalties: http://arstechnica.com/microsoft/news/2011/10/microsoft-collects-license-fees-on-50-of-android-devices-tells-google-to-wake-up.ars
/endquote
Quote:"Microsoft didn’t specifically reference that post, but today said “For those who continue to protest that the smartphone patent thicket is too difficult to navigate, it’s past time to wake up.” Microsoft doesn’t just collect money from other companies, it also pays out plenty to protect itself, Microsoft’s legal team notes.
“Over the past decade we’ve spent roughly $4.5 billion to license in patents from other companies,” Microsoft said. “These have given us the opportunity to build on the innovations of others in a responsible manner that respects their IP rights. Equally important, we've stood by our customers and partners with countless agreements that contain the strongest patent indemnification provisions in our industry. These ensure that if our software infringes someone else's patents, we'll address the problem rather than leave it to others.”
just a reminder to us that Microsoft hasn't become any less evil just because apple are pushing the boundaries of evil.
I will buy the droid razr and the next nook color because of this and because they are great devices not made by cowardly companies.
oh and Microsoft, please sue amazon please, that might turn out to be fun.
this is pure extortion 'you violate our patents we can't tell you which ones'. Why don't you pay us a small percentage of your sales to make the problem go away?
I guess I am going Apple
That's half of all device manufactures, not half of all devices sold. Stubble difference.
Why is Google silent in this matter? Now before you mod me down, I know Google have made some inconsequential comments. These have not helped at all.
Dicalimer: I am not a lawyer.
If I were Google, I would file a some lawsuit to 'force' Microsoft to reveal the patents that Android is infringing on, or force Microsoft not to mention the word Android in its licensing propaganda.
My suspicions of what is really going on:
1: Microsoft approaches an Android OEM with a 'sweet deal' relating to Android.
2: Microsoft pays the OEM some cash and a deal is struck that results in the OEM saying no word about the deal, but allows Microsoft to spread FUD.
On major OEMs like Samsung, the deal could be about future android based products that would envisage incorporating Microsoft technology (which actually exists and is interesting).
You wonder why the other party says nothing at all about the licensing. But the major thing about all this is the silence of Google.
What Google could do in addition, is to modify the non GPL portions of Android and add language that specifically prohibits licensees from entering into licensing deals like the ones Microsoft touts if they are going to be party to Microsoft's FUD.
Here's the worry: It might backfire!
Does anyone else find it ironic that the broken U.S. patent system, and by extension, the broken U.S. government, along with some good-old boy corporate nepotism, is leading us right back to the old Microsoft/Apple duopoly? No more webOS, no more Meego, RIM is on the ropes and Android looks to be next.
Who looses? The customer.
:T:R:A:N:S:
Seriously i can't believe that patents are this out of control. I mean all OS's are going to be relatively similar because it is so difficult to make a GUI from scratch that people will like.
BSD is older than Windows. It's older than Microsoft.
MS has been in the smartphone business since about 1997. They *may* have one or two things they spent a bit of time working on... Remember WinCE was built for that market.
i've been getting frustrated with Barnes and Noble.
They have been changing into more of a toy store than a book store, but now i feel like going and buying something from them.
i'll have to look up what the 4th book in the john carter series is.
Google can't do anything about the FAT patent that everyone has to use for card storage. Consumers expect to be able to pull the SD card from a device and have it usable in something else without having to worry about file system drivers. FAT is the defacto standard for memory cards today.
The industry fell asleep on this one, when they should have all worked together to create a license and royalty free open spec file system. The blew it and are now paying the price, well, we the consumer is paying the price.
Microsoft are winning this game, they always have been. They will pillage the open source market and as many markets as they can and squeeze it for every cent. yes Android is pseudo open source, but it's less closed that the ms offering or apples bastardisation of bsd.
Freedom isn't as shiny as Apple or Microsoft and it's not as glamorous. Sure if that's what you choose, then go ahead, but as actual day to day user of open source software on my desktop I feel that choice is slowly being taken away from me. How long, I wonder, before I can't run an approved software stack on a motherboard at home?
I see a slow convergence of Microsoft strategies. I don't ever think they will go away, but I wish they would stop trying to impose their will on my choices. Everywhere you turn there is Microsoft throwing its weight around, cementing its monopoly. They are the MacDonalds of Information Technology.
My ism, it's full of beliefs.
The patent system was put in place to promote innovation. It's a shame that large companies are able to use it to stifle innovation through patent purchasing and subsequent bullying.
MS has evolved into a mafia-like organization. They don't innovate anymore, they just make everyone pay them a "protection" tax. (I'd say the same about Apple, but they still innovate in addition to bullying.)
You're delusional.
Something useful the competition authorities (US, EU, ...) could do is the check MS OEM contracts, to see if and how they distort the OEM capacity to offer non-MS OSs in pcs, tablets, phones, and so on.
The thing is, it isnt neccessarily Android that infringes. It may well be the handset makers implementation, maybe even hardware. Note Microsoft hasnt sued Google yet AFAIK. This makes it not Googles problem.
"None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
Folks at Pubat claim the patent was rejected.
You wonder why the other party says nothing at all about the licensing.
Because both parties agreed to not discuss the specifics of the licensing deal, something that is pretty standard. They (Samsung, HTC, Apple, ..etc..) stand to gain nothing by letting their competition (Samsung, HTC, Apple, ...etc..) know what their own deal is, as their competition could then easily refuse to accept anything worse. Its the fog of war codified in a non-disclosure agreement that both sides of a negotiation typically insist upon (Barnes and Noble being the exception... but they have nothing to trade but money.. and not a lot of that as they are getting their ass handed to them by Amazon.)
P.S. Even Google licensed from Microsoft for Google-branded phones. Thats right, even Google is licensing from Microsoft.
"His name was James Damore."
Also not paying is Sony Ericsson:
http://www.xperiablog.net/2011/10/04/sony-ericsson-is-%E2%80%9Cpatent-safe%E2%80%9D-according-to-ceo/
Here's my problem.
If an OEM is going to licence some stuff from Microsoft for use in Android, that's fine. Let them go ahead, after all Android can be 'extended', being opensource.
The trouble is that Microsoft's FUD is claiming that Android OS *is* is infringing. Let them clarify. Are they saying that the source code as downloaded from Android's website infringes or the additions/modifications to the source code by OEMs make Android devices infringe. All I would like is a clarification, and only a lawsuit can assure this.
Laugh all you want. That ship is sinking and sinking good.
GOOD RIDDANCE.
Really? I always thought WinCE was meant for the PDA / pocketPC market.
Circumcision is child abuse.
If an OEM is going to licence some stuff from Microsoft for use in Android, that's fine. Let them go ahead, after all Android can be 'extended', being opensource.
Are you forgetting about the opposite of 'extended?' Android, being opensource, may also be 'limited' by the OEM.
The trouble is that Microsoft's FUD is claiming that Android OS *is* is infringing. Let them clarify.
If you want a specific case clarified you can look at their lawsuit with Motorola where the patents that Microsoft claims are being violated by Motorola are now public information.
All I would like is a clarification, and only a lawsuit can assure this.
It seems like you are the one spreading FUD (Fear, Uncertainty, Doubt) by pretending that such a lawsuit doesnt exist. There is actual certainty (ie, no doubt) about which patents Microsoft is claiming that Motorola is infringing. Its on the public record.
"His name was James Damore."
Not only they are extracting money from phone manufacturers, grabbing them by collar; they are also bragging about in their blog. What has software industry come to?
What's notable this time around is that ChromeOS is also implicated as an infringing technology. Compal is now the third ODM company to enter into a Microsoft agreement over ChromeOS and Android. Brian Proffitt goes into more detail in this blog post: http://www.itworld.com/mobile-wireless/215897/microsoft-why-innovate-when-you-can-litigate
Good to know what brand of phone to keep buying.
THE SOFTWARE, IT NO WORKY!!!
Why would it even be Linux-related?
Android could be using any OS underneath its layer. Probably even Hurd, even if I don't know how well it would play with theGPLv3.
That is the main weakness of Android as I see it.
is only wrong when MS does it, please remember that.
P.S. Even Google licensed from Microsoft for Google-branded phones. Thats right, even Google is licensing from Microsoft.
Many of your posts mention this like it is some grand revelation. Google licenses ActiveSync. Duh.
The soylentnews experiment has been a dismal failure.
I'm not an open source zealot but I'll admit that having learned B&N didn't knuckle under was a factor in my choice of a Nook Touch e-reader & in fact I bought two; one for myself & one as a gift.
I'm not saying I want this to happen, but at this point I'm wondering if the only way this will ever get fixed is by a large US corporation threaten to move or actually move to another country in exchange for protection against the mess that is the US patent system.
Microsoft gets more money from Android then their own phones.
>> All I would like is a clarification, and only a lawsuit can assure this.
It's easy. Become a device manufacturer, get a decent success and they'll knock on your door.
Really why they should clarify to *YOU* is beyond me. They have to clarify with parties involved, which are Samsung, HTC, etc., not the general public. The fact that some people are interested in Android doesn't mean they have any right to know.
That article states the reasoning as being that they already own licenses to a lot of stuff from their parent companies and they have a lot of patents to use to fight back with.
i.e. it isn't necessarily that they aren't paying, they just aren't going to have to pay more than they already are.
Sony Ericsson is probably a minefield. If they launch the combined Sony and Ericsson patent portfolio against MS, the outcome is not obvious.
These stories about the patent wars seem more familiar each day. They are growing more and more like another global industry; Organized Crime.
Google is just biding their time for Microsoft or Apple to make a small mistake in the application of their IP. Then, they just need to find a Federal prosecutor with the gumption to go after these companies on racketeering charges...
If you want to produce a smartphone, tablet or [insert device envisioned by science fiction writers long before Steve Jobs stole the mouse from Xerox, or Bill Gates bought DOS for $50k], you have to pay Apple, Microsoft, Samsung, or somebody else licensing fees. Not all that different than Vinny, Checkov, or Sean Patrick walking in to the local corner store demanding protection money. Only difference is the soldiers of the various crime syndicate will tell you what 'violations' they are accusing you of.
Combine that with the very sophisticated system for legally companies to transfer funds to lawmakers, judges, lawyers, etc (these types of bribes are called campaign contributions) and it becomes a state sponsored/supported duopoly. Yeah Capitalism!
Microsoft has warned time and time again that they are going to use this method to destroy open source and software freedom.
The strategy:
Microsoft approaches open source business
Microsoft: You know its a dangerous neighborhood. you should pay us for protection.
Business Owner: Protection? from who?
Microsoft: Well...from us really.
Microsoft: Oh and sigh this NDA you cannot talk about this to anyone ok?
This campaign is not limited to Android its an attack on all open source and software freedom.
Its a legal way for them to take ownership of other people's code that they had nothing to do with
Microsoft is making sure that companies are too scared to use open source.
The list of companies that have fallen victim to this scheme is getting long
Remember TomTom? And Bufallo? They don't make Android devices but still signed a Linux license.
They claim Open Office violates their patents. Expect them to charge for devices distributed with OO and Libre Office
Basically if your code is anything other than "hobby code" you are liable. Microsoft says you are running an "undisclosed balance sheet" and must pay them.
Non-Android Linux licensees that I'm aware of :-
Tomtom
IO-Data
Buffalo
Amazon(License for use of Linux on Amazon servers)
Fuji Xerox Co. Ltd.
Brother International.
Kyocera Mita Corp
LG Electronics,
Samsung Electronics Co. Ltd
I'm sure there's more.
Bottom line If you write useful code that competes with Microsoft look for them to take ownership of your code through the use of software-patents and have a nice day.
Things will become interesting with the suite against Motorola, especially if Google is successful in buying them. If Google owns Motorola and Motorola actually pays licenses to Microsoft for using Android, it will be very entertaining. If Microsoft drops the suite (presumingly because the NDA and sweet deal you proposed was not possible with a company owned by Google) it might also be quite revealing.
(I did not find a link about the current state of that case. If it was already dropped please anyone post a link. But in this case it might still be possible for Google to publish more detailed information on the case if they are able to buy Motorola.)
Trolling is a art!
Their devices have become very attractive all of a sudden.
The patent covers VFAT, the long-names extension to FAT. Simple way to avoid the patent, don't support long names, only support FAT on your memory cards. Of course, the license fee for VFAT probably isn't very large so that one might not be worth the the tradeoff.
make imaginary.friends COUNT=100 VISIBLE=false
Google is paying only for ActiveSync, but is certainly paying more than a phone manufacturer would (because Google Apps Sync uses it too, not just Google's Android phones.) Microsoft would have to endanger its current arrangement with Google in order to seek revenue on patents that Google has not licensed in their Android phones.
So yeah.. you don't know why its significant.. Duh.
"His name was James Damore."
Google is paying only for ActiveSync, but is certainly paying more than a phone manufacturer would (because Google Apps Sync uses it too, not just Google's Android phones.)
Wow, you are just the fount of fucking knowledge. So, Google pays more than a phone OEM because they use it in more than just phones. What other pearls do you have to bestow upon us, Captain Oblivious?
The soylentnews experiment has been a dismal failure.
Google doesn't say anything because Android is a loss-leader for them to drive search revenues. They don't make much money off Android directly do from their point of view it isn't their problem.
Things may change with their purchase of Motorola but I suspect that they will have some difficulties here. If they use Motorola to bring out a lot of successful devices, they will piss off their OEMs. If they aren't successful then that's just more wasted money when they can let the OEMs eat the R&D and risks, all to drive search revenue to Google.
Natural != (nontoxic || beneficial)
Even in Linux, I've never managed to format a card, or an USB drive, under ext2, despite trying. This should have been an option. How about HPFS - if someone formats a card using that, will it be consuming any MS patents? Also, all Linux distros include VFAT support in them as far as the cards go, so does Microsoft also collect royalties from every copy of Linux that's sold? Or recognize its free distribution as piracy?
Can anyone post a link to the patents that Microsoft is claiming Android infringes upon?
echo '[q]sa[ln0=aln80~Psnlbx]16isb572CCB9AE9DB03273snlbxq' |dc
Microsoft has explanation how protection racket works. Interesting.
You still don't know why its significant. Duh.
The GGPP wonders why Google is silent. Duh. Are you even reading the thread?
Perhaps this why even hairyfeet of all people can make you look foolish... because you dont even read the thread!
"His name was James Damore."
Unlike you who needs no help looking foolish. All you are doing in the thread is regurgitating talking points like you just stumbled upon some great profundity. You don't know shit. You think you do when all you are doing is confirming your own bullshit. Seriously, put your posts through an objective critical filter before you start trying to throw rocks at somebody else. Practically everything I've ever read from you on here as well as Hacker News is a slight variation of Rah Rah MS and down with Google. You are a broken record that sucked the first time around. I'm glad you mention Hairyfeet; you sound just like him. Tweedle dum and tweedle dee.
The soylentnews experiment has been a dismal failure.
you one dumb sob
Those 'Rockoon' links on "Hacker News" are about rockets launched from balloons you retard. What a fucking dipshit.
"His name was James Damore."
The dipshit is you. The only fucking moron that writes the exact same tripe on Hacker News under the exact same handle and you don't even realize you're doing it? So not only are you an intellectually dishonest bore but you suffer from amnesia too. Why don't you pull some Minority Report shit and go on ahead and drink your Google hater's r us cult cyanide^H^H^H^H^H kool-aid and spare us your future mouth diahrrea. Go on, man, make the world a better place.
The soylentnews experiment has been a dismal failure.
HaHa you one dumb ass motherfucker
The soylentnews experiment has been a dismal failure.
Any GPL software which is found to be in violation of copyright automatically has it's license revoked:
and
I argue that any company paying Microsoft a patent fee has lost their right to the GPL code because by their actions they "render the program non-free."
I do not fail; I succeed at finding out what does not work.
Let them patent the way man pee and every man will pay M$ pee taxes.
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Programmers think languages should follow rules. English doesn't. Spelling what sounds like loozer as loser fails basic pronunciation testing. I can totally understand it. English has some structural problems that require more memorization than is ideal. I don't know how to fix that. I wish less of my brain was occupied with the idiosyncrasies of the English language.