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Microsoft's Most Profitable Mobile Operating System: Android

puddingebola writes "Steven J. Vaughan-Nichols has a piece of commentary discussing Microsoft's profit from their patent claims on Android. From the article, 'To some, Windows 8 is a marketplace failure. But its flop has been nothing compared to Microsoft's problems in getting anyone to use its Windows Phone operating systems. You don't need to worry about Microsoft's bottom line though. Thanks to its Android patent agreements, Microsoft may be making as much as $8 per Android device. This could give Microsoft as much as $3.4 billion in 2013 from Android sales.'"

32 of 309 comments (clear)

  1. Linux by Jacek+Poplawski · · Score: 3, Interesting

    So after all... Microsoft is making money on Linux.

    1. Re:Linux by jedidiah · · Score: 3, Insightful

      ...in an extremely limited and entirely self-serving way.

      Redhat and Suse deserve those billions far more than Microsoft does. Even Canonical has a better claim.

      --
      A Pirate and a Puritan look the same on a balance sheet.
  2. Re:Fuck off by SJHillman · · Score: 5, Insightful

    Why not?

    If you're going to make a claim like that, you should at least say why. If they're valid, legitimate patents then I see no reason why the company shouldn't make money off them. That's how the system works.

  3. Re:WP8 Isn't all bad by Anonymous Coward · · Score: 3, Funny

    If Microsoft had pushed out the OS a couple of years earlier the mobile phone market would likely be a very different place.

    Yep, and if my grandma had wheels she'd be a WAGON.

  4. Re:Fuck off by jedidiah · · Score: 5, Insightful

    In the current patent regime, it is far more likely that the patents involved are total bullsh*t. It's Microsoft that has to justify itself here. Of course it will never do that because the entire Android community could then try to code around this kind of larceny and extortion.

    Although some things boil down to "being compatible".

    --
    A Pirate and a Puritan look the same on a balance sheet.
  5. Re:Does anyone have a list of the patents? by jonbryce · · Score: 5, Informative

    The main ones are long filenames in FAT, ex-FAT for > 32GB SD cards, and ActiveSync.

    There are alternatives for all of these, but in the case of Activesync alternatives, they are not as good, and in the case of FAT, it means getting the same filesystem drivers onto other computers and devices.

  6. The Solution by TrueSpeed · · Score: 5, Interesting

    All Google needs to do is offer a commercial licence, for a small fee, to all Android OEM's that indemnifies them. This way if Microsoft has an issue with Android or Linux they can take on Google directly. But, we all know that would never happen because Microsoft clearly knows that Google would single handily invalidate all of their obvious, worthless and prior art ridden patents one by one.

    1. Re:The Solution by squiggleslash · · Score: 3, Insightful

      Solution to what? Microsoft is being careful here to (1) license, at reasonable rates, its IP, and (2) concentrate only on phone manufacturers (meaning they're at least ahering to the spirit of the original Appeals Court ruling legalizing some software patents, which said that it's OK to patent software as long as it's a part of physical device. - http://en.wikipedia.org/wiki/Diamond_v._Diehr I believe, though I may have the wrong case, I'm going by memory.)

      While we can have a debate about the fairness of forcing hardware makers to license patents on a FRAND basis, it'll never be the same issue that it is for software. Hardware makers expect to have per-object costs, they're never going to have any kind of business model that does not expect a certain about of revenue per thing produced.

      I don't see any evidence that HTC, Samsung, et al are fuming about having to pay money to Microsoft. They are upset about Apple's armtwisting, but that's largely because Apple's hostility to Android to begin with, with patents being used and abused to attempt to close the competing platform down rather than make money from it, and Apple's reluctance to license FRAND patents on the technologies it uses to build iPhones at the going rate.

      Microsoft isn't really being much of a problem here.

      --
      You are not alone. This is not normal. None of this is normal.
    2. Re:The Solution by Jah-Wren+Ryel · · Score: 5, Insightful

      Microsoft isn't really being much of a problem here.

      You seem to be confusing form for content. Yes, MS is following the form of "FRAND" but what they are FRANDing is itself not reasonable. If MS had a legitimate set of patents, they wouldn't keep them a secret. FFS patents are public documents.

      --
      When information is power, privacy is freedom.
    3. Re:The Solution by Jah-Wren+Ryel · · Score: 4, Insightful

      So why not just do it? It's money on the table for the whole ecosystem.

      If one company stands up to MS and loses, MS will certainly charge them more for the licensing. But if they win, all the manufacturers will benefit equally as the patents will be invalidated for everyone. So the risk of failing in a challenge is not proportional to the benefit of wining the challenge.

      As it is now, each manufacturer can just pass the licensing fees through to the end customer and since all the major android manufacturers (presumably) have roughly the same licensing costs there is no competitive disadvantage to paying the microsoft tax.

      --
      When information is power, privacy is freedom.
    4. Re:The Solution by inode_buddha · · Score: 3, Insightful

      Wrong. (I can't believe I'm replying to an AC) Think about it: Barnes and Noble called them out on it *and won* since they have a good argument for the Doctrine of Laches (regarding the NDA's). Which estopped MS from collecting anything on the patents in question. Barnes and Noble were able to do this because they don't offer any other MS products. Samsung et al *do* offer other products with MS, and to call them out may have impacted their other licensing agreements in an unfavorable way. Hence they folded to the racket.

      --
      C|N>K
  7. Re:Fuck off by poetmatt · · Score: 5, Insightful

    this isn't how the system is designed or intended, this is how the system has been perverted.

    making money off products you do not have any involvement in via patent extortion is a sign of a broken system and this is already reaching antitrust investigations.

  8. Re:Does anyone have a list of the patents? by ssam · · Score: 4, Interesting

    any good reason not to use UDF for large flash cards? it has read and write support in linux, mac and windows. I use it for USB sticks.

  9. Re:Fuck off by Eirenarch · · Score: 5, Insightful

    But Microsoft are justifying themselves. They are going to court where companies justify themselves. IANAL but if I read the news correctly they are currently crashing Motorola in each and every court they sue each other. Of course none of the cases is over yet but the "justification" has certainly began.

  10. Re:Fuck off by Eirenarch · · Score: 5, Insightful

    Because this is not how patent settlements work. Patent settlements do not list patents they license the entire portfolio related to the product. This means that if tomorrow MS invents something and Google puts it in Android Samsung will be able to use it because they are paying for it even though it is not invented yet. Actual patents are only shown in court and they are certainly showing some patents when suing Motorola. The Motorola case will certainly prove if MS has relevant patents as the legal system defines them although I am sure /. people will invent a "rounded corners" meme and claim that the judge is corrupted or something.

  11. Re:Does anyone have a list of the patents? by Archangel+Michael · · Score: 3, Interesting

    ActiveSync works. With Exchange. It just works. But it is easily replaced by going to GMAIL and GCalendars. ActiveSync is what killed BlackBerry servers, as it does most everything most people want or need. Not everything, but good enough.

    Trust me when I say this, nothing else comes close to Exchange for total functionality. Problem is, it is Microsoft, and horribly expensive. Someone making a ground up replacement to Exchange would make a killing, especially if they give it away for free (j/k).

    --
    Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
  12. Re:Does anyone have a list of the patents? by serviscope_minor · · Score: 3, Interesting

    any good reason not to use UDF for large flash cards? it has read and write support in linux, mac and windows. I use it for USB sticks.

    This is why I read slashdot.

    Apparently it had passed me by that UDF is for anything other than DVDs (I know technically you can have any FS on any block device on Linux). I am actually going to try this on my next USB stick.

    Thanks!

    --
    SJW n. One who posts facts.
  13. Re:Fuck off by Penguinisto · · Score: 4, Insightful

    Microsoft won't justify themselves, they just have to threaten to take away the Windows licence form that company and thats probably why they won;t go after Google.

    In a relatively short period of time, that may be irrelevant... Windows Phone isn't selling for shit, and even Microsoft knows it. That leaves threats and patent pseudo-trolling as their only real income option in the mobile space.

    --
    Quo usque tandem abutere, Nimbus, patientia nostra?
  14. Re:Fuck off by Gr33nJ3ll0 · · Score: 3, Insightful

    Courts of law are not the only judge of what's bullsh*t. Since it's pretty clear the current court system is flawed, allowing massive abuse of the patent system, I think it's fair to ask Microsoft to justify itself to the large audience, and explain what value it's adding. This way we can make a determination whether or not it's acting like a parasite.

  15. Re:Windows Phone equals RIM at rest by DogDude · · Score: 4, Interesting

    Funny you say that. I have a Windows Phone. Several people I know have Windows Phones. We all like 'em quite a bit. Bought 'em at a local Verizon store. Much better than the alternatives.

    Why all the FUD?

    --
    I don't respond to AC's.
  16. Re:Fuck off by poetmatt · · Score: 4, Informative
  17. Re:What are you saying? by unrtst · · Score: 5, Insightful

    What are they waiting for?

    A list of exactly what is being violated?
    To put it in perspective, consider the SCO-Linux lawsuits. While this isn't exactly the same, it is the same sort of hurdle.

    Company A: Your stuff violates some of our stuff! Pay us or else!
    Company B: What stuff?
    Company A: A lot of stuff! 68 things enumerated over thousands of places to be precise. Now pay us or else!
    Company B: Um, what stuff is it exactly?
    Company A: Oh, you'll find out in court. Consider yourself served! ...
    And for those that agree (settle out of court), it seems common for a "deal" to be offered, with one of the rules being that they don't divulge that information.

    Maybe that's not the case here, but I'm betting that's at least part of it (the other part being bogus or weak patents). There may even be a couple valid ones, but as far as I know, that hasn't been fully identified.

  18. Re:WP8 Isn't all bad by Code+Yanker · · Score: 3, Informative

    There is a task switcher (hold down the back button and a list pops up with thumbnails from your open app). Also, with WP8, any app can run in the background as long as it conforms to certain rules about resource utilization. Not many apps use the feature yet, but the key ones like Skype do, where you want the app to do something even if the app is running in the background.

  19. I just don't get it? by NormAtHome · · Score: 4, Interesting

    Why are manufacturers paying this extortion rather than banding together and trying to fight it like any other patent troll?

    What is Google's position on this and why aren't they indemnifying manufacturers that use Android or fighting this themselves?

    1. Re:I just don't get it? by kthreadd · · Score: 4, Insightful

      Because the legal system that we have created is designed to let companies like Microsoft do exactly what they are doing. This is completely normal.

  20. Re:I'll keep hiding by gstoddart · · Score: 3, Informative

    That is, until Microsoft asserts patent ownership on the stuff in your free software.

    I believe several times they've claimed that Linux violates a number of unspecified patents they hold, but I don't believe they've ever been willing to disclose what they are.

    One does have to wonder what these patents are, if the patents would survive scrutiny, or if the technology was actually invented by someone else before Microsoft patented it.

    --
    Lost at C:>. Found at C.
  21. Re:next on the s.v.n. show... by gstoddart · · Score: 4, Insightful

    Or, maybe being a writer for ZDNet he writes things which are frequently of interest to us?

    Three whole times in 2013 so far, wow, there must be some kind of conspiracy.

    --
    Lost at C:>. Found at C.
  22. Re:Fuck off by sqrt(2) · · Score: 5, Insightful

    There's no such thing as a legitimate software patent.

    --
    If you build it, nerds will come. Soylentnews.org
  23. UDF file format by hankwang · · Score: 3, Informative

    any good reason not to use UDF for large flash cards?

    I have no personal experience here, but this UDF compatibility matrix does not look too promising. Apparently there are five UDF versions and three variants within each version, and only the oldest versions (from 1996-1997) actually have wide OS support.

    A bit more googling produces more comments from users about tricky incompatibilities.

  24. Re:Windows Phone equals RIM at rest by amiga3D · · Score: 3, Insightful

    I knew a guy that bought an AMC Pacer. He loved it.

    http://en.wikipedia.org/wiki/File:1975_AMC_Pacer_base_model_frontleftside.jpg

  25. Re:Fuck off by jareth-0205 · · Score: 4, Informative

    this isn't how the system is designed or intended, this is how the system has been perverted.

    making money off products you do not have any involvement in via patent extortion is a sign of a broken system and this is already reaching antitrust investigations.

    Well I agree that the system is broken in various ways, but the point of the patent system is to make money off things that you aren't involved in. To allow & encourage people to publish their inventions in return for a cut whenever someone uses that invention. It is supposed to encourage invention, by allowing a monopoly to the first person to do something. They are not supposed to have to make a working product, just to publish their idea so that someone else might.

    Now whether that's a good idea anymore is another discussion, but what you describe is what patents are designed to do.

  26. Re:WP8 Isn't all bad by ArhcAngel · · Score: 3, Informative

    If Microsoft had pushed out the OS a couple of years earlier the mobile phone market would likely be a very different place.

    Microsoft had a more capable mobile OS in 2001 than they have now with WP8. The hardware has finally reached a point where Windows Mobile could shine but they gave up and bought Danger and trotted out the Kin which they spent over 2 years developing but gave up on in less than 6 mo. They were so desperate to get Windows Phone out the door they left crucial features and backward compatibility out completely. Microsoft is all about bailing the water out of the boat instead of patching the leak.

    --
    "A person is smart. People are dumb, panicky dangerous animals and you know it." - K