Jan 12 AT 10:57 AM Anthony Domanico 28 Comments

Microsoft inks patent agreement deal with LG, now makes money on 70% of Android devices

lego-lawyer-gun-briefcase Image via: pasukaru76 with Creative Commons

Microsoft has added LG to its list of Android handset makers it makes money off of. Microsoft has inked a patent agreement deal with LG that will have LG pay Microsoft a small fee for every LG Android (and Chromebook) device sold.

Microsoft’s latest deal brings their total up to a massive 70% of Android devices covered under Microsoft’s patent portfolio. Microsoft earns significant amounts of money off Android device sales; it was discovered back in August that Microsoft makes more money with Android than with its own Windows Phone 7 platform, which has struggled to gain any traction in the smartphone market.

With Android sales making up nearly 50% of the US smartphone market, Microsoft is making a ton of money off Android and is certainly looking at ways to capitalize on their patent portfolio. (Could Motorola be next in line?) While we hate to see a rival company making money off Google’s platform, we can only hope that money is going into making Windows Phone 7 more relevant. Though, the odds of Windows Phone 7 gaining a following in the US (or elsewhere, for that matter) is mighty slim.

Show Press Release

Microsoft and LG Sign Patent Agreement Covering Android and Chrome OS Based Devices

REDMOND, Wash. – Jan. 12, 2012- Microsoft Corp. and LG Electronics have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for LG’s tablets, mobile phones and other consumer devices running the Android or Chrome OS Platform. The contents of the agreement have not been disclosed.

“We are pleased to have built upon our longstanding relationship with LG to reach a mutually beneficial agreement. Together with our 10 previous agreements with Android and Chrome OS device manufacturers, including HTC, Samsung and Acer, this agreement with LG means that more than 70 percent of all Android smartphones sold in the U.S. are now receiving coverage under Microsoft’s patent portfolio,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft. “We are proud of the continued success of our program in resolving the IP issues surrounding Android and Chrome OS.”

Microsoft’s Commitment to Licensing Intellectual Property

The agreement with LG expands upon a pre-existing agreement, and it is another example of the important role IP plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 1,100 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft’s significant R&D investments and its growing, broad patent and IP portfolio.

More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing/?typ=64.

Source: Engadget

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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