Oct 24 AT 9:50 AM Dustin Earley 34 Comments

Microsoft now cashing in on half of all Android ODMs


It’s no secret that Apple and Microsoft have very different views on how to handle patent infringement. Apple chooses to take everyone to court instead of licensing patents. The Cupertino-based company recently went on the record saying that, even if they win their current court cases with manufacturer Samsung, they will still only license certain low-level patents. Microsoft has taken the opposite approach, inking licensing deals everywhere they can. Over the weekend, Microsoft came to yet another patent agreement — this time with Android manufacturer Compal.

Compal is s Taiwanese original design manufacturer who has a hand in the production of products from Lenovo. Microsoft calls its latest deal “a new milestone for our Android licensing program.” From here on out, a “reasonable and fair” share of Compal’s $28 billion annual income will go to Microsoft. With this latest deal, Microsoft is now cashing in on patent agreements from over half of all Android original design manufacturers. Fifty-five percent to be exact.

Back in early August, it was revealed that Microsoft currently makes more money from Android patent agreements than from their own mobile OS. Since that time, Microsoft has struck a deal with Samsung, the world’s number one manufacturer of phones. The fourth quarter will undoubtedly be very profitable for Microsoft, whether they sell any phones or not.

Via: Engadget

Source: Microsoft

Dustin Earley: Tech enthusiast; avid gamer; all around jolly guy.

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  • http://www.anthonydomanico.com Anthony Domanico

    “The fourth quarter will undoubtedly be very profitable for Microsoft, whether they sell any phones or not.”

    They won’t.

  • Mil

    I despise Microsoft for how they are behaving. If I was Microsoft, I would forget about pushing WP7 as any money made from that would only be dwarfed by the money coming in from the Android royalties. In fact, WP7 could be taking away potential royalty revenue from what they would receive. However, Microsoft being Microsoft, they just want to own the world which is just silly.

    • thel0nerang3r

      Not defending MS, but everyone wants to own the world. Heard the quotes from Steve Jobs’ biography regarding Android? Also, Google want’s Android on everything. Nothing personal, it’s just business.
      With that said, I think that Google will need to step up at some point and take MS, Apple and whomever keeps suing Android manufactures to court to settle things. Either Google ends up paying a settlement or it gets Android vindicated.
      Also, I don’t see manufacturers paying for royalties hampering Android’s growth. For example, take Samsung, seems like they are paying $15/deice (doesn’t say how much compal is paying). They’ll just pas on the cost to the carrier. The price you pay for an unsubsidized phone, is no where near what the carrier pays. They make it ridiculously high to make the “contract” price seem very attractive. So, anyways, the manufactures will just ask for an extra $15 from the carrier.
      Yes, it sucks donkey balls that it has come to this, but knowing what they have to pay, makes it better for manufacturers. Now, whoever buys phones from Compal doesn’t have to worry about being sued.

  • http://www.mlswanson.com SparkyXI

    Perhaps it would be in Microsoft’s best interest to be completely rid of WP and start developing Android (i,e, Sense, motoBURP, TouchWiz, etc).

    • Legend

      I don’t see the point in them developing a GUI for android when they aren’t a hardware company so therefore no phones to put it on, unless of course they made something ‘amazing’ and licensed it to someone.

    • 666

      They shouldn’t give up. Windows 8 will be big, Xbox is going metro and IE is finally getting good. If MS ever will have a chance to take a piece of the market, it will be within the next three years.

  • Nathan

    Another victim of Microsoft

  • http://keridel.blogspot.com keridel

    i will say again microsoft are playing the game the way its meant to be played.

    they arent trying to stop all android sales. or cause the destruction of the world. or bring skynet to power.

    they just want some money for stuff they invented.

    thats fine with me.

    • AppleFUD

      I agree. If a company has legitimate patents then they have every right to get paid for them. That’s no different than Nokia, Samsung, and Motorola getting paid for their radio technologies.

      However, the way MS goes about it at times is very much like the mob, at least that’s what it seems like on the outside.

      Nonetheless, that’s better than apple’s attitude. They don’t even have serious patents–mostly design patents–and they want to ban every other product that even remotely resembles or does similar things as theirs. I guess that comes from Jobs thinking that he was “special” and the rules didn’t apply to him thus, he could steal anyone else’s ideas but god forbid that anyone innovate on apple’s.

      • Legend

        “They don’t even have serious patents—mostly design patents”
        Refer to suing over rectangular shape lol

    • rfvgyhn

      Agreed. The real problem is the game. Software patents as they are now are a joke. I’d say the game needs to change, not the players.

      “The idea that I can be presented with a problem, set out to logically solve it with the tools at hand, and wind up with a program that could not be legally used because someone else followed the same logical steps some years ago and filed for a patent on it is horrifying.” – John Carmack

      • counsel

        He might be able to use it with a … license. I’m guessing Carmack licenses out his company’s tech too ;p

        • rfvgyhn

          Licensing software isn’t the same. If people don’t want to solve the problem someone else’s software does, they can choose to purchase a license to use it.

          Putting it in game engine terms, it would be like Carmack patenting moving a mouse in order to change where the camera is looking in a FPS or using quaternions to prevent gimbal lock.

    • http://www.leperkhanz.com rhY

      Asinine. Software patents are logically and fundamentally indefensible. You may as well try to patent DNA. Oh wait, these corrupt megacorporations are doing that too already. Do a little more thinking on the topic, and also review the words of Ben Franklin, inventor of among other things THE FUCKING BATTERY:

      “… as we enjoy great advantages from the inventions of others, we should be glad of an opportunity to serve others by any invention of ours; and this we should do freely and generously.”

      Ben Franklin was much smarter than You, or I, and certainly the evil corporate pinheads at Microsoft.


    I must say , as much as I do not like it…. I must commend them.. Damm that hurt me to say

  • S

    Man i just love this effin photo! :)

  • http://www.fifthmissionmarketing.com A

    I think this is the problem with our country, this is just hiking up the price for us. the end user is charged more for every cost that is built into these phones. Microsoft is hurting our pockets in the long run. I say we do something about it.

    • 666

      Yeah, lets come up with original ideas.

  • KaLanGO

    They are smart i have to say that, but are those really vital patents that OEMs need to use (the technolog) to implement their phones or is M$ just making a good old bullying session?

  • Eric R.

    Big deal…

    Intel’s patents make money off of every mac and pc sold. Big deal…

    Business as usual with agreed money changing hands, this is not new.

  • Steve Nutt

    Never thought I’d say this but, Microsoft > Apple…

    Ouch, still think this is all crazy wrong, but in this case it’s the system that needs to change, not Microsoft.

  • deckrider

    Think of the cotton gin. Should Eli Whitney have been given a patent on the invention of the machine that can remove seeds from cotton or the idea of removing seeds from cotton?

    The former is the patent system at its best.

    The latter is the parent system at its worst.

    • sap26

      Watch out, bud, Microsoft now owns the cotton gin. Oh, and thinking. :) damnit, and the smiley face!

  • louis

    Can someone explain what patents microsoft is staking claims on and profiting on Android?

    • Dirge

      No one can tell you that, not even Microsoft.

  • Anthony

    That image is getting way over used now… Any time anyone makes a post about Microsoft, either that or the image of him making the goofy face is shoved in the post. Do you _really_ need to include an image for every story? That adds absolutely nothing to the story and is just a distraction. I can see including something like that every once in a while, but now it is no better than clipart…

  • brightcell

    I personally call this ….racketeering!!

  • jeffb34

    Why hasn’t someone actually looked at the patents microsoft is claiming?

  • sylar

    Come on android stand up for your self. You could make minced meat out of Microsoft…. as I realize what I’m saying as I’m typing on my windows computer…..

  • http://klout.com/#/SliestDragon SliestDragon

    Man, Microsoft really is making me angry. I really hope Google uses the patents they have to put Microsoft in their place soon, this is ridiculous. >:(

    • a5cent

      And how exactly do you know that Microsoft isn’t justified in their patent claims? Every company Microsoft has spoken with has concluded that licensing the tech is better than testing their patent claims in court. Samsung would certainly have gone to court if the claims were baseless.

      I am more than happy to pay every company that participated in developing (directly or indirectly) the gadgets I buy, including Microsoft. What we really should be up in arms about are the billions of dollars tech companies spend world-wide for “legal services” because our patent system is so ridiculously broken! Those costs are also passed on to us without providing us any benefit whatsoever. Microsoft at least develops stuff… lawyers don’t.

  • http://youtube.com/user/jawckamoe Marcus

    Microsoft needs to get a life. Apple does as well. Google NEEDS to use their patents to put an end to this.

  • finndogg

    Trying to bleed em dry, get richer off the successful of others that’s all.

  • pritams