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Microsoft Makes an Astonishing $2 Billion Per Year From Android Patent Royalties

mrspoonsi sends this report from Business Insider: "Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company. He estimates that the Android revenue has a 95% margin, so it's pretty much all profit. This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash."

6 of 304 comments (clear)

  1. Re:Value added? by charles2678 · · Score: 4, Interesting

    The only thing stopping Google from abandoning Microsoft's patents is that the end result would be worse than all the cheap Chinese rip-off tablets and phones.

    That's only potentially true when the patents are disclosed. It's fashionable to not disclose what the specific patents argued to be infringed actually are (or the mechanics of how they're infringed) when trying to license a portfolio.

    Can't work around a patent when you don't know what it is.

  2. Re:really? XBox? we sure about that? by ilguido · · Score: 4, Interesting

    Xbox is still there only because M$ has deep pockets. The original Xbox lost billions, the 360 lost a couple more billions in its first two years on the market and then never made a steady profit, they can also hide the development expenses for the Xbox in their R&D division, not to mention the expenses for the development of the Xbox OS. The Xbox would not be a viable platform for anyone else, but M$. That's a fact.

  3. common misconception. basic laws not patentable by raymorris · · Score: 4, Interesting

    > software is math

    Games are art, and are software.
    Most games are 95% art, 5% math, and 100% software.
    Math CAN be done as software, but so can art and many other non-math things. Some software is math. A LOT of software has little to do with math.

    > math isn't supposed to be patentable.

    That's a common misconception, started and encouraged by people with a particular agenda. The rule in the US is:

        The LAWS of nature, including mathematics, are not patentable.

    Note that it's the basic laws that aren't patentable. Things that USE those laws are.

    Gravity isn't patentable. An elevator is.
    Momentum isn't patentable. A brake system is.
    Division isn't patentable. eBay's feedback system is.
    Light reflection isn't patentable. The way Blender simulates reflection is, if it's novel.

  4. patent vs copyright by Chirs · · Score: 5, Interesting

    Technically it's only the implementation of an idea that is supposed to be patentable. With physical patents if you can accomplish the same thing by other means then it's fair game.

    Somehow in software they've decided to allow patenting the *idea* of momentum when scrolling via swiping, or bounceback when you hit the end.

    The equivalent to patenting physical implementations would be to allow protection of their *implementation* of an idea--and in the software world that implementation is already protected by copyright, so there's really no need for software patents.

  5. Re:Two billion bucks... by whoever57 · · Score: 5, Interesting

    I have never understood this. Windows users are used to installing drivers for each new piece of hardware. Why not bundle an ext4 driver? The device could even have a small FAT partiton (without the patented parts of FAT) that contains the driver for the larger ext4 partition.

    Manufacturers have allowed the situation to exist.

    --
    The real "Libtards" are the Libertarians!
  6. Re:Gates was on the right track.. by timeOday · · Score: 5, Interesting
    The benchmark is Microsoft's return on investment from their investment in Mobile, starting in the early 90's I'd guess.

    This gets to an odd contradiction right in the summary: the mobile division is "burning serious cash," yet also making $2B which is "pretty much all profit." It's as if the author sees no connection between investing in a business unit to generate intellectual property, and subsequently profiting from that investment.