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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  • AsakuraZero

    ok im going to make a meme out from this

    “yet this show why M$ is still better than apple”

    and I MEAN IT

  • jawabba

    Android is bringing in more money for Microsoft than Windows Phone 7. That’s pretty sad.

    • http://droidsamurai.blogspot.com DroidSamurai

      Android is probably bringing in more money for Microsoft than for Google. That’s even sadder.

      • AsakuraZero

        not really if you think that every M$ pc uses google as its main engine and all the google ads that comes from those computers,

        i think things are just getting even haha

      • UndergroundWIre

        Well, 90% of Google’s profit comes from advertisement. So you are right but it isn’t sad at all.

        • Callmemisterr

          Back in the day microsoft solely had deals with HTC, Samsung, and so on. They may still own the rights to some of the technology that is being used such as the chipsets the processors and things like that. Think about it I used to own an HTC HD2, a windows phone, that phone set the mark for many “android” devices that came directly after that phone. 1GHZ processor 1gig internal memory and so on. Thats what made the HD2 so easy to upgrade to android, it had pretty much the same specs as the Nexus one at that time, which was made by who? HTC. So I think its a smart move for them to do something like that and continue to make money even tho they don’t sell as many phones

  • uknowme

    What’s truly sad about this is Microsoft still sucks at everything not related to PC.

  • http://www.baldypal.com Adam Jones

    for the life of me, i cant figure out what that patent has that LG would sell and get in to bed with Microsoft over. What does an LG Android device have that LG needs Microsoft to back them on? Is there something I don’t know? Does Microsoft own LG and I didn’t realize it?

    • OnIn2

      It would seem to me, that your new #1 priority would be to remove the cause of the patent infringement. It’s a total waste of money.

  • BiGMERF

    from a business standpoint, i cannot blame whats going on. as an android fan, im hating it

  • redraider133

    Well when your own OS is making very little money they need to do something to supplement that and android sadly is what is doing that.

  • spazby

    Good for microsoft, they are good at making money. I can’t stand it though….

  • Kelly

    The only companies entering agreements like this with Microsoft are companies that also sell (or would have the opportunity to sell) Windows phones. I would bet $100 that for every “You pay us $5 for every Android device you sell” in these agreements, there is a corresponding “…and we’ll pay you $6.50 for every Windows device you sell.”

  • pjax

    Anyone know what this MS patent that LG (supposedly Android) is infringing on?

    I hate hearing that a certain features are being removed from phones because they infringe on patents. can’t bear to know that my device could have had a certain feature, but they don’t because of patent issues.

    multitouch, slide to unlock, bounce effect: I’m looking at you

    I’m also waiting for the day Google fights back with all their patents. After billions of patents thrown around over the past years, we’ve never heard a peep out of Google. Android, when are you fighting back?

  • tarwinia

    I use to find this ridiculous but now I’m starting to look on the bright side.

    If android is such a cash cow for Microsoft it’s more likely that they’ll start to support it. I’d love it if Android had a really good office editing software. I actually was editing something in Polaris Office on my cell, then passed it over to the tablet and continued editing with Polaris Office there and the formatting went all wonky. Couldn’t even fix it on my desktop. I ended up having to transcribe the entire document. Now if Open Office were available I wouldn’t care a rat’s arse about M$ (Open Office might not be 100% compatible with MS Office Suite but it’s close enough for my purposes.

  • Jeff Pan

    Anyone has any idea which patent is the one i question? Is there no workaround?

  • matt

    Screw Microsoft and Apple! The days if close minded closed source personal computing are dead. I’m so glad I made the switch too Ubuntu and Android for that matter. Open minded and more importantly… Open sourced!

  • aranea

    Soon MS will be able to don’t worry about MS phone at all and just milk Android’s success.

  • S

    This is sad. Huge companies like Microsoft and Apple are making TONS and TONS of money off of Android, just slowing down the future and innovations. Yet Android still stands as the #1 OS.
    I hope to see more of Android, and we allready have it in phones, tablets, mp3s, cameras, TVs, watches, alarmclocks speakers and even more! cheers!

  • lokidokie

    That’s ridiculous. This shit needs to stop

  • http://k-selezneva.blogspot.com/ KatSelezneva

    I wish the companies would make money by developing new technologies, releasing amazing smartphones and usable OS updates. But they continue earning money from lawsuits :((( 2011 results for the mobile development world http://k-selezneva.blogspot.com/2012/01/2011-results-for-mobile-development.html

  • Jerome

    MS gotta make sum money somehow and I guess this is the most profitable so MS gonna milk the hell out of the Android cash cow

  • Callmemisterr

    Back in the day microsoft solely had deals with HTC, Samsung, and so on. They may still own the rights to some of the technology that is being used such as the chipsets the processors and things like that. Think about it I used to own an HTC HD2, a windows phone, that phone set the mark for many “android” devices that came directly after that phone. 1GHZ processor 1gig internal memory and so on. Thats what made the HD2 so easy to upgrade to android, it had pretty much the same specs as the Nexus one at that time, which was made by who? HTC. So I think its a smart move for them to do something like that and continue to make money even tho they don’t sell as many phones

  1. ok im going to make a meme out from this

    “yet this show why M$ is still better than apple”

    and I MEAN IT

  2. Android is bringing in more money for Microsoft than Windows Phone 7. That’s pretty sad.

    • Android is probably bringing in more money for Microsoft than for Google. That’s even sadder.

      • not really if you think that every M$ pc uses google as its main engine and all the google ads that comes from those computers,

        i think things are just getting even haha

      • UndergroundWIreGuest 3 years ago

        Well, 90% of Google’s profit comes from advertisement. So you are right but it isn’t sad at all.

        • CallmemisterrGuest 3 years ago

          Back in the day microsoft solely had deals with HTC, Samsung, and so on. They may still own the rights to some of the technology that is being used such as the chipsets the processors and things like that. Think about it I used to own an HTC HD2, a windows phone, that phone set the mark for many “android” devices that came directly after that phone. 1GHZ processor 1gig internal memory and so on. Thats what made the HD2 so easy to upgrade to android, it had pretty much the same specs as the Nexus one at that time, which was made by who? HTC. So I think its a smart move for them to do something like that and continue to make money even tho they don’t sell as many phones

  3. What’s truly sad about this is Microsoft still sucks at everything not related to PC.

  4. for the life of me, i cant figure out what that patent has that LG would sell and get in to bed with Microsoft over. What does an LG Android device have that LG needs Microsoft to back them on? Is there something I don’t know? Does Microsoft own LG and I didn’t realize it?

  5. from a business standpoint, i cannot blame whats going on. as an android fan, im hating it

  6. Well when your own OS is making very little money they need to do something to supplement that and android sadly is what is doing that.

  7. Good for microsoft, they are good at making money. I can’t stand it though….

  8. KellyGuest 3 years ago

    The only companies entering agreements like this with Microsoft are companies that also sell (or would have the opportunity to sell) Windows phones. I would bet $100 that for every “You pay us $5 for every Android device you sell” in these agreements, there is a corresponding “…and we’ll pay you $6.50 for every Windows device you sell.”

  9. Anyone know what this MS patent that LG (supposedly Android) is infringing on?

    I hate hearing that a certain features are being removed from phones because they infringe on patents. can’t bear to know that my device could have had a certain feature, but they don’t because of patent issues.

    multitouch, slide to unlock, bounce effect: I’m looking at you

    I’m also waiting for the day Google fights back with all their patents. After billions of patents thrown around over the past years, we’ve never heard a peep out of Google. Android, when are you fighting back?

  10. tarwiniaGuest 3 years ago

    I use to find this ridiculous but now I’m starting to look on the bright side.

    If android is such a cash cow for Microsoft it’s more likely that they’ll start to support it. I’d love it if Android had a really good office editing software. I actually was editing something in Polaris Office on my cell, then passed it over to the tablet and continued editing with Polaris Office there and the formatting went all wonky. Couldn’t even fix it on my desktop. I ended up having to transcribe the entire document. Now if Open Office were available I wouldn’t care a rat’s arse about M$ (Open Office might not be 100% compatible with MS Office Suite but it’s close enough for my purposes.

  11. Anyone has any idea which patent is the one i question? Is there no workaround?

  12. mattGuest 3 years ago

    Screw Microsoft and Apple! The days if close minded closed source personal computing are dead. I’m so glad I made the switch too Ubuntu and Android for that matter. Open minded and more importantly… Open sourced!

  13. Soon MS will be able to don’t worry about MS phone at all and just milk Android’s success.

  14. SGuest 3 years ago

    This is sad. Huge companies like Microsoft and Apple are making TONS and TONS of money off of Android, just slowing down the future and innovations. Yet Android still stands as the #1 OS.
    I hope to see more of Android, and we allready have it in phones, tablets, mp3s, cameras, TVs, watches, alarmclocks speakers and even more! cheers!

  15. That’s ridiculous. This shit needs to stop

  16. I wish the companies would make money by developing new technologies, releasing amazing smartphones and usable OS updates. But they continue earning money from lawsuits :((( 2011 results for the mobile development world http://k-selezneva.blogspot.com/2012/01/2011-results-for-mobile-development.html

  17. JeromeGuest 3 years ago

    MS gotta make sum money somehow and I guess this is the most profitable so MS gonna milk the hell out of the Android cash cow

  18. CallmemisterrGuest 3 years ago

    Back in the day microsoft solely had deals with HTC, Samsung, and so on. They may still own the rights to some of the technology that is being used such as the chipsets the processors and things like that. Think about it I used to own an HTC HD2, a windows phone, that phone set the mark for many “android” devices that came directly after that phone. 1GHZ processor 1gig internal memory and so on. Thats what made the HD2 so easy to upgrade to android, it had pretty much the same specs as the Nexus one at that time, which was made by who? HTC. So I think its a smart move for them to do something like that and continue to make money even tho they don’t sell as many phones