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Microsoft Sells 1,500 Patents To Xiaomi To Build 'Long-Term Partnership' (reuters.com)

An anonymous reader quotes a report from Reuters: Software maker Microsoft Corp is selling about 1,500 of its patents to Chinese device maker Xiaomi, a rare departure for the U.S. company and part of what the two companies say is the start of a long-term partnership. The deal, announced on Wednesday, also includes a patent cross-licensing arrangement and a commitment by Xiaomi to install copies of Microsoft software, including Office and Skype, on its phones and tablets. Wang said the acquisition of Microsoft patents, which included voice communications, multimedia and cloud computing, on top of some 3,700 patents the Chinese company filed last year, were "an important step forwards to support our expansion internationally." Florian Mueller, a patents expert who consulted for Microsoft in the past, said it was rare for Microsoft to actually sell its patents, adding "it's possible Microsoft found it easier to impose its Android patent tax on Xiaomi as part of a broader deal that also involved a transfer of patents."

66 comments

  1. Someone didn't do their research by Anonymous Coward · · Score: 1, Funny

    Has a phone deal with Micro$oft ever worked out for anyone? Other than the competitors, of course.

    1. Re:Someone didn't do their research by NotInHere · · Score: 4, Funny

      It has worked out for Nokia. They happily sold their business to microsoft, which is now dead in the water, while they themselves build another phone business.

    2. Re:Someone didn't do their research by Luckyo · · Score: 2

      You need to urgently get out from below the rock you're living in. Nokia was gutted from top position to utter collapse, and the remains of the phone business it still had were sold to Foxconn.

      Nokia is down to being just a network company now.

    3. Re:Someone didn't do their research by Keruo · · Score: 2, Interesting

      Nokia hasn't collapsed anywhere. They were stuck with nearly zero-profit obsolete business-line(mobile consumer devices) which was management heavy and managed to sell it before starting to lose too much money on it.
      Remaining Nokia reported 1,2B € earnings last year with decent operating margin.

      You might disagree how Flop handled the sell-out to MS but the overall result is what Nokia has been the last ~150 years, a company that can reinvent itself when necessary.

      --
      There are no atheists when recovering from tape backup.
    4. Re:Someone didn't do their research by ChunderDownunder · · Score: 2

      Flop, lol. I'd be very worried if I were a Telstra shareholder.

    5. Re: Someone didn't do their research by Anonymous Coward · · Score: 0

      no.
      but samsung and htc dodged license fees to ms by producing token amounts of devices.

      that worked out ok for them. xiaomi is doing the same. but ms was stupid enough to hand over the patents to do it. unbelieviable.

      also probably if xiaomi licenses the stuff out ms gets backdoor to the money. why do it like this? because ms has cross licensing deals, so this might be a way to try to get out of those. shady if it is.

    6. Re:Someone didn't do their research by Luckyo · · Score: 4, Interesting

      Nokia was formed from three divisions. Approximately 2/3 of the company was the mobile phone division, about a quarter was networks and remains was the navigation.

      Mobile phones collapsed and is now dead, with remains sold off to foxconn after the rights to the brand name came back from microsoft. Navigation business was there to help the mobile phone, and it was sold off asap. The only part that remains of nokia is the network business, which was a completely separate division within the old company with little to no synergies with the rest of the business.

      Which is why it survived.

    7. Re: Someone didn't do their research by Anonymous Coward · · Score: 0

      Those patents they're throwing at Xiaomi are probably those they acquired in the Nokia deal. Nokia losing its patents to Chinese competitors... This must hurt the old school Nokia guys and girls.

    8. Re:Someone didn't do their research by TheRaven64 · · Score: 1

      Nokia dumb phones were still selling very well before that microsoft plant stepped into the ceo position.

      Nokia dumb phones were in a shrinking market and had a razor thin profit margin. They existed primarily to build the Nokia brand and get people to buy Nokia smartphones, which wasn't working. Nokia had been making year-on-year losses for several years before Elop took over. Prior to that, they'd identified that their existing platform (Series 60) had problems (it had a nice modern kernel design and a userland crippled by being heavily optimised for devices with under 1MB of RAM). Their solution to this was to replace the kernel with Linux and have half a dozen teams compete internally to provide the userland. These teams spent more time sabotaging each other than producing something decent that they might ship. By the time that they had something vaguely plausible, there was no buy in from third-party app developers.

      They might possibly have succeeded in making Android handsets, but given that only one company is making any profit doing that (and no one was when they made the decision not to), it wasn't an obvious call.

      --
      I am TheRaven on Soylent News
    9. Re: Someone didn't do their research by Anonymous Coward · · Score: 0

      So they sold dumb phones to get people to buy more smart phones. Yea that makes sense. Because the people buying dumb phones usually want smart phones.

    10. Re:Someone didn't do their research by Anonymous Coward · · Score: 0

      he only part that remains of nokia is the network business, which was a completely separate division within the old company with little to no synergies with the rest of the business.

      Wrong.

      Nokia Siemens Networks was not a division, it was joint venture between Nokia and Siemens, run as a separate corporation. Its primary business was selling the mobile infrastructure used by wireless carriers.

      You really are a clueless twat.

    11. Re: Someone didn't do their research by Anonymous Coward · · Score: 0

      At that point smart phones were still relatively expensive so many people expecting to ultimately upgrade to a smart phone were using basic phones. Also data plans were more expensive.

      Given the large unknowns in the future, the though, a strategy that looks to have a 50% chance of success may fail, and a 25% chance if success may succeed, so vilifying a company for failing with a strategy more likely to succeed is trying to project the present to the past and wondering why people couldn't see the future when the present might not be the obvious chain of events.

    12. Re:Someone didn't do their research by Luckyo · · Score: 1

      NSN was always a part of Nokia as a whole. While it was co-owned by Siemens for a while, it was never separated from Nokia itself as far as corporate structure goes.

    13. Re:Someone didn't do their research by Anonymous Coward · · Score: 0

      You:

      They might possibly have succeeded in making Android handsets, but given that only one company is making any profit doing that (and no one was when they made the decision not to), it wasn't an obvious call.

      You on the 28th of May:

      They basically had the choice of Android or Windows Phone. The margins in the Android handset market are tiny - even in 2010, few companies other than Google and Samsung were making money - and there was little competition in the Windows Phone market.

      So whos making money and whos not? Make up your mind. If there was no money in making Android phones nobody would be doing it simple as that. Yet practically every company is building android phones and nobody is building windows phones except microsoft. funny that. Even before eflop stepped into the CEO position there was not ONE company that built windows phones exclusively. Nobody else was crazy enough to put all their cards into SOMEBODYS ELSES operating system that was failing really badly. All the other companies knew that windows phone os was shit otherwise they would have put more effort into it.
      You can twist the facts and excuse it with "so vilifying a company for failing with a strategy more likely to succeed" but only you are saying that. Even ex-Nokia exec Tomi Ahonen called it in 2012 a certain road to death. When nokia shifted from symbian to windows phone, nokia lost a THIRD of its customers between september 2011 and february 2012. Every other company could see it then that windows phones os was going nowhere. It had no ecosystem and youre ignoring the fact that the N9 outsold every windows phone nokia had. Even if nokia preservered with Meego and failed at least it was their own child and they werent betting on somebody elses horse which was failing badly. If meego failed it would have been easier to port whatever they had done over to android since they're both 'nix. When microsoft finally admitted windows phone was a failure, nokia's work on it was worthless which was probably what microsoft wanted to buy up nokia cheap.

    14. Re:Someone didn't do their research by Shirley+Marquez · · Score: 1

      Only one maker of high end Android smartphones is making a substantial profit: Samsung. The rest are scraping by or losing money. Low cost smartphones are increasingly turning it into a commodity business where the profit margins will be thin and nobody outside a low-cost production environment like China will be able to make any money. Companies like Xiaomi and Huawei may be able to show a profit, but HTC and LG are in trouble.

      Some years earlier Nokia was in the same bind with dumbphones. Any hope of continuing to make them in Finland was dead. If they had stayed in the business they would have had to move production elsewhere, as Microsoft did with the business before selling it to Foxconn. Dumbphones had the additional problem that the market for them is shrinking.

      Nokia did well to sell the phone business while it was still worth something. It's possible that they could have done better by making better decisions a few years earlier, but it's unclear. Making Android smartphones would probably have been more successful at the moment, but the long term forecast would still be dim because of the competition from China.

  2. What is going on with Microsoft lately? by Anonymous Coward · · Score: 0

    Is it me or has Microsoft been going off the rails lately in its decision-making process? First, ramming Windows 10 down everyone's throats and now selling off patents to China?

    There's something terribly wrong here.

    1. Re:What is going on with Microsoft lately? by Anonymous Coward · · Score: 0

      Lately? This is Slashdot, everything Micro$oft does is terribly wrong. Even when they do the things that are the exact opposite of the terribly wrong things they did before.

  3. Death Spiral in 5...4...3...2...1... by geoskd · · Score: 2

    part of what the two companies say is the start of a long-term partnership.

    Translation: This is the start of the eventual destruction and liquidation of Xiaomi

    I can only hope someone has warned the executives at Xiaomi about whom they are dealing with, but apparently they either don't know or don't care

    .

    --
    I wish I had a good sig, but all the good ones are copyrighted
    1. Re: Death Spiral in 5...4...3...2...1... by Anonymous Coward · · Score: 0

      Uh... that's more than a little paranoid. Microsoft is a large and successful company, but they're not ruthless predators. Unlike most Chinese companies.

    2. Re:Death Spiral in 5...4...3...2...1... by glitch! · · Score: 2

      (Why the hell don't quote tags work here?! I first tried HTML brackets, then LG and GG signs, but they still would not render the above quote. Crap. Please refer to the above post.)

      This reminds me of AOL two decades ago. They had a big image and were writing contracts left and right with venture capital startups. Their policy was, "F--- them out of their money." A startup that got 10 million would give most of that to AOL for some worthless "partnership". Then they would run out of money and AOL would say "bwah, ha, ha!".

      Now we are talking about Microsoft, but the story sounds similar. I have to wonder if these patents are even enforceable, or just accepted. Will China enforce these patents against supposed infringing products leaving the shipping docks? Or will it be up to Xiaomi to find "infringers" and take them to court? In China, or USA? This seems like a big bucket of worms.

      --
      A dingo ate my sig...
    3. Re:Death Spiral in 5...4...3...2...1... by freeze128 · · Score: 1

      Don't you mean "eventual destruction and liquidation of Microsoft", since it is Microsoft who SOLD the patents?

    4. Re:Death Spiral in 5...4...3...2...1... by ChunderDownunder · · Score: 1

      I think it's more likely that Mi will start producing the Surface Phone.

      Having severed ties with Finland and the Lumia, MS need a manufacturer while Xiaomi are seeking a mainstream market entry into North America, hoping to get a leg up on Chinese rivals Lenovo, ZTE and Huawei.

    5. Re:Death Spiral in 5...4...3...2...1... by silentcoder · · Score: 1

      >I can only hope someone has warned the executives at Xiaomi about whom they are dealing with, but apparently they either don't know or don't care

      Oh they do, and historically, they are not going to get hurt - in fact they are likely to make quite a nice bundle of cash out of the process. It's everybody ELSE in the company who will end up jobless. Microsoft's destruction of 'partner' companies are usually done in a way that benefits the executives of those companies - that's exactly why they keep going along with it.
      It destroys the company, it destroys whatever made their products unique, it puts a lot of people out of work and it hurts consumers no-end, but the executives, they score.

      --
      Unicode killed the ASCII-art *
    6. Re:Death Spiral in 5...4...3...2...1... by Anonymous Coward · · Score: 0

      Considering that Xiaomi is a strategic asset of the chinese government, MS would have to be extremely stupid to try their usual predatory routine here. What they are interested in is getting their fingers in that sweet totalitarian surveillance industry pie.

    7. Re: Death Spiral in 5...4...3...2...1... by Type44Q · · Score: 1

      but they're not ruthless predators.

      Better not tell the shareholders; fiduciary duty and all that...

    8. Re: Death Spiral in 5...4...3...2...1... by Anonymous Coward · · Score: 0

      ", but they're not ruthless predators"

      Did you forget the tag?

      Hahahahahahahhahahahahagagaggyagayafjxn

      I just broke my enter key because I laughed so hard and spit my soylent juice all over my phone.

      Hahahabanananahabahahahahn

      Nm I read what you wrote again, laughed, spit my juice out, and it fixed it.

      Thanks for the two long laughs. You made my day. Maybe even a 0 day :P

    9. Re:Death Spiral in 5...4...3...2...1... by Anonymous Coward · · Score: 0

      TOUCHE! You just died in an unannounced China-USA (commercial) war because the prize is NOT using (advanced) computers and not land... yet. - DJB

  4. Thanks for telling us who microsoft is by Anonymous Coward · · Score: 1

    Thanks for explaining to us who microsoft is, they are new here.

  5. Quote Quote Quote by CrashNBrn · · Score: 1

    <quote>Quotes <i>seem</i> to</quote>

    <blockquote><b>work</b> just fine.</blockquote>

  6. Mueller? by goose-incarnated · · Score: 4, Informative

    How the hell does this guy still have credibility after his 100% wrong calls, for years, on SCO's claim on Linux?

    --
    I'm a minority race. Save your vitriol for white people.
    1. Re:Mueller? by Anonymous Coward · · Score: 1

      Because he is an expert, which means if he is wrong it was just a rare mistake, unlike you if you are right it means you are very lucky, because you are not an expert. This is literally how it works.

    2. Re:Mueller? by StormReaver · · Score: 1

      How the hell does this guy still have credibility after his 100% wrong calls, for years, on SCO's claim on Linux?

      As soon as I saw the name, "Florian Mueller," I stopped reading. Given his track record, I can only assume that the entire article is worthless prattle; infected by Muelleritis (nonsensical, factually incorrect, crap sprouting from the shit mound of wishful thinking).

  7. Worked really well by goombah99 · · Score: 2

    Microsoft get's a lot of money from other people's phones.

    I think this deal is about finding a way to squeeze every other chinese vendor even harder. Microsoft can't sue from the outside because the Chinese gov't knows how to tilt the tables. But if a chinese company sues another one, that's a whole different ball game. MS gives Xiaomi some exclusives and now they all of a sudden want to keep them exclusive. Xiaomi is an ambitious hungry company that is competing at the low end the market. Not just for phones but for all the components of the integrated electronic living space. Microsoft is offering them a way to not only glue all that together in a way that is an instant standard-- equivalent to say, compaq running MS dos that runs IBM lotus 123 out of the box with no changes. Now they can compete not just on price but on being better. And they will want to protect that advantage for themselves.

    So now MS has a club to beat up all the other non-paying patent violators that's a chinese company

    --
    Some drink at the fountain of knowledge. Others just gargle.
  8. Governmental pressure? by Guppy · · Score: 1

    "it's possible Microsoft found it easier to impose its Android patent tax on Xiaomi as part of a broader deal that also involved a transfer of patents."

    Perhaps "easier" in the sense that the PRC government hinted that Microsoft could find itself highly inconvenienced in China, if it acted otherwise? Or perhaps they didn't hint anything, and Microsoft is choosing to be pro-actively obsequious.

  9. Start of a new relationship? by 93+Escort+Wagon · · Score: 1

    I can't see Microsoft as either Humphrey Bogart or Claude Rains. Peter Lorre, maybe if I squint hard enough... but if I was going to pick someone from that era to be Microsoft, it'd probably be Oliver Hardy.

    --
    #DeleteChrome
    1. Re:Start of a new relationship? by Buchenskjoll · · Score: 1

      Ronald Reagan was considered for the role as Rick (first Rick-roling in history?), but it went to Humphrey Bogart. Ronald Reagan would have been a little more Microsofty.

      --
      -- Make America hate again!
    2. Re:Start of a new relationship? by 93+Escort+Wagon · · Score: 1

      "Louie, the bombing begins in five minutes."

      --
      #DeleteChrome
  10. Re:and in a related post by Anonymous Coward · · Score: 0

    If you are thinking these thoughts very often there are redtube and related video sites to help you get off.

  11. This is a smart move for Microsoft. by default+luser · · Score: 4, Insightful

    There is no such thing as the Google Play Store in China (yet). So Xiaomi has filled the void with their own Mi Store.

    So now's a perfect time for Microsoft to catch a ride on the hottest smartphone train outside iOS. Google Play will be joining the fight later this year, so this is a move by Xiaomi to strengthen their position before that.

    --

    Man is the animal that laughs.
    And occasionally whores for Karma.

  12. Music by TimMD909 · · Score: 1

    I find this title and summary are best read while listening to the theme of Jaws or The Omen.

  13. skating to where the puck is going to be by Anonymous Coward · · Score: 1

    With MS giving up on the phone wars, why not sell patents related to things you already lost in exchange for getting your next generation of software out there? The next market is when the device goes away, and MS needs to be there not on it's own third rate phones.

  14. The next MS catch song will be by TexNex · · Score: 2

    ...Backdoor Lover. Or at least it should be with this new partnership.

  15. Microsoft still evil by Tough+Love · · Score: 2

    Microsoft still evil, still stuck in quasi legal twilight zone. Xiaomi was introducing Linux laptops, hence this new trust making activity. Same old Microsoft, same old tricks.

    --
    When all you have is a hammer, every problem starts to look like a thumb.
  16. patents to Xiaomi by AliceSandra · · Score: 1

    [Microsoft next move ](http://readnews247.com/detail/20914)

  17. I'm a little scared. by SharpFang · · Score: 5, Interesting

    I got a Xiaomi phone recently. At first I was a little wary, but it grew on me immensely.

    First - it comes pre-rooted. The built-in "Security" app can be used to simply grant root to any app that requires it. The bootloader is fully unlocked too, if you choose to replace the whole OS.

    Then - Extras. Dual Sim, SD slot, FM radio, and all the typical essential goodies, plus some extras like gyroscope. A HUGE battery. IR sensor/LED for using as remote. A normal, generic earphones jack. Decent camera and a strong LED which you can use as a flashlight without installing 3rd party apps or risking damage.

    And then a similar Samsung of the same release date and the same price has half the features. Xiaomi has roughly 2x the screen resolution (although not AMOLED), 8 cores instead of 4, 2GB RAM instead of 1.5, twice as much flash.

    With entering the western markets en masse, I imagine Root and unlocked bootloader will get the axe first. Then the price will get jacked up to match phones of similar amount of features.

    --
    45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    1. Re:I'm a little scared. by Anonymous Coward · · Score: 0

      pre-rooted by the chinese state....there, fixed it for you...

    2. Re:I'm a little scared. by Anonymous Coward · · Score: 0

      And it phones home to the Chinese government. No thanks.

    3. Re:I'm a little scared. by Anonymous Coward · · Score: 0

      I'm a xiaomi user too, with the new MIUI v8 they are forsaking root and unlocked bootloader (but apparently you can unlock the bootloader). They say they are locking the bootloader because shops are adding bloatware to international sales. Though I loved the unlocked bootloader :D. Though I have to admit I cant stay away from MIUI its quite feature complete!

    4. Re:I'm a little scared. by drinkypoo · · Score: 1

      Then - Extras. Dual Sim, SD slot, FM radio, and all the typical essential goodies, plus some extras like gyroscope. A HUGE battery. IR sensor/LED for using as remote. A normal, generic earphones jack. Decent camera and a strong LED which you can use as a flashlight without installing 3rd party apps or risking damage.

      So the LED aside, all stuff you get from a decent Motorola phone these days...

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    5. Re:I'm a little scared. by Junta · · Score: 1

      Same for the LED. In fact, recent Android bakes in the 'use it as a flashlight nowadays', so I'm confused as to why this would be seen as a differentiator from any phone.

      One thing I do like about my motorola is I can take it and shake it twice and the flashlight toggles, without having to open anything or use the screen to do it. That, the 'force wave to see current time' and the twist to camera gestures are handy features I don't see in other devices.

      --
      XML is like violence. If it doesn't solve the problem, use more.
    6. Re:I'm a little scared. by Anonymous Coward · · Score: 0

      So the LED aside, all stuff you get from a decent Motorola phone these days...

      My Moto G has the LED flashlight feature and all of the other features except the dual sim.

      Motorola does make Moto Gs with dual sims, but not for the US market.

    7. Re:I'm a little scared. by Anonymous Coward · · Score: 0

      Ahhh Nothing like the old pre Microsoft times
      Such fond memories

    8. Re:I'm a little scared. by SharpFang · · Score: 1

      The Chinese government will have way less ability to abuse my private data than my own government.

      --
      45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    9. Re:I'm a little scared. by SharpFang · · Score: 1

      My phone is Xiaomi Redmi Note 2. It cost me 650PLN.
      The only Motorola phone of corresponding specs (2GB RAM, octa-core, dual sim, SD slot) is Motorola Moto G4 Plus. 1100PLN.

      So - yes, you can get all that stuff from a decent Motorola phone, for about twice the price.

      --
      45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    10. Re:I'm a little scared. by Anonymous Coward · · Score: 0

      That phone is one of the first that comes with Marshmallow. Which is fantastic, considering one could put in a high density SD card and make THAT the primary storage, instead of the mere 8GB of flash

  18. congratulations by Anonymous Coward · · Score: 0

    Xiaomi. On your new Global Mother Fucking Spyware.

  19. Xiaomi products are great by Anonymous Coward · · Score: 0

    Been using them for years, often vastly cheaper and exceeding expensive products in quality. Great stuff. Hope MS doesn't ruin this.

  20. Did you load third party ROMs on it? by kbahey · · Score: 1

    Which model specifically?
    Are there projects to get third party ROMs available for it?
    Did you try loading third party ROMs on it?
    Something like OmniROM for example?

    1. Re:Did you load third party ROMs on it? by SharpFang · · Score: 1

      Xiaomi Redmi Note 2. I was comparing it to Samsung Galaxy Note J5, which was released at about the same time, is a really popular dual-sim phone nowadays, and costs about the same.

      I installed the official Europeized MIUI from https://miuipolska.pl/download... following the procedure on the site (place the file in /sdcard, rename it to update.zip, reboot holding volume down, pick "English", "Install update.zip to System One")

      The original's English support was... uh, "scarce". Like, the message is in English, but buttons what to do with it are in Chinese. I probably could use the in-system "Updater" app, but all system app names were in Chinese, so I couldn't locate it ;) Now Chinese still peeks out from obscure corners of the system (some pre-installed apps in disused folder) but the system is 99% in English.

      I didn't try loading any other ROMs. What I have already exceeds my expectations. MIUI has some quirks that take getting used to, but once you do, it's really no worse than anything you can get elsewhere; plus I always (in the past) found 3rd party ROMs fail to support some most obscure features like the FM radio or the Infrared, while the official one covers 100% of what the hardware provides - and really doesn't restrict anything that usual stock ROMs restrict.

      --
      45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    2. Re:Did you load third party ROMs on it? by SharpFang · · Score: 1

      err, holding volume up :) Volume down enters fastboot.

      --
      45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
  21. Skip to the end... by minus9 · · Score: 2

    "Florian Mueller said...."

    Who dug this idiot up again? Next story.

  22. My head hurts by Anonymous Coward · · Score: 0

    "Hey, let's get Skype on as many more devices as we possibly can at any cost" said the company that has no clear friggin plan on what they plan to do with Skype...