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Topic: Microsoft

Report: Microsoft wants $15 from Samsung for every Android handset made

Summary: Microsoft is squeezing the Android patent cash cow as hard as it can, with Samsung in the firing line this time.

Adrian Kingsley-Hughes

By for Hardware 2.0 |

Microsoft is squeezing the Android patent cash cow as hard as it can, with Samsung in the firing line this time.

According to The Economic Times, Microsoft is demanding that Samsung pay $15 for each Android handset it makes. The report also goes on to suggest that Samsung would seek to lower this figure to some $10 for each handset 'in exchange for a deeper alliance with Microsoft for the U.S. company's Windows platform.'

These patent deals are lucrative. Microsoft has already struck a deal with handset maker HTC where it's estimated to receive some $5 for every handset. Nokia has also recently struck a deal with Apple which rakes in some $11.50 for each iPhone sold.

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Samsung is the #2handset maker selling some 19 million smartphones between April and June, and it's expected that it will take the #1 slot from Nokia pretty soon, so it's a big target for Microsoft to go after.

How much could this b worth to Microsoft? Well, estimates suggest that for the Galaxy S II smartphone alone Microsoft could pull in $200 million a year.

Topics: Microsoft, Hardware, Mobility, Samsung

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35 comments
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  • money for nothing, chicks for free.

    :-)
    NoAxToGrind
    Reply Vote

    • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

      @NoAxToGrind ;-)
      statuskwo5
      Reply Vote

    • that's outrageous

      @NoAxToGrind
      this racketeering must stop NOW!
      M$ should be banned from using its dirty patents against real innovators.
      Linux Geek
      Reply Vote

      • Doesn't innovation...

        @Linux Geek

        ...mean you did it first? :) If that's true, then *MS* is the innovator and FOSS are the dirty thieving scum.

        Whodathunkit...
        wolf_z
        Reply Vote

      • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

        @Linux Geek

        Please tell me one thing innovative about Linux. No it being free and a open source clone of Unix doesn't count.

        So go ahead...
        tonymcs@...
        Reply Vote

  • The myth of competition is good for the consumer

    One of the most oft-quoted myths is that somehow Google offering ChromeOS and Android will help drive the entire industry to innovate more and benefit the consumer. This clearly demonstrates that Microsoft is the driving innovative force and that their competitors repackage Microsoft' Intellectual Property.
    Your Non Advocate
    Reply Vote

    • Really enjoying my innovative Asus Transformer

      @facebook@... These patents prevent progress. That's what patents, particularly software patents, do. "He who can destroy a thing, controls that thing." -- Frank Herbert, Dune.

      Microsoft innovations in exploiting patents and unsavory business deals to assert control and prevent progress is a long and sordid history. Their basic position is that if they don't get to control it, you can't have it - and everything they control turns to crud.

      I'm really hoping we're getting close to an end to this nonsense. We like all this cool new stuff we've been getting lately that Microsoft has no control over nor input on. None of it comes from Microsoft's traditional "partners" because they've all been thoroughly muzzled. That by itself should tell you where the innovation is coming from.

      All we have to do now is take ownership of progress back. In the longer term, it's for the greater good. It's going to sting a little though.
      symbolset
      Reply Vote

      • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

        @symbolset they should have been there first and got the patents themselves, instead of crying now like babies for not being able to use other people's work for free. Microsoft paid up 200m recently for an xml patent, so they just play the game. What should they do? is it not enough the chinese and indians use millions of PCs with no proper license? Software is not free you know.
        panoslondon1
        Reply Vote

  • Complete and total crap.

    From what I understand, other handset makers are only being "taxed" $5 dollars per handset. So what makes Samsung so special? The fact that they are revolting against the tax? Good for them, but I don't think Microsoft should try and levy more against them just because they are succeeding where Microsoft continues to fail.

    Personally, I think Google should be the ones that Microsoft goes after, but because Google themselves are a bigger entity and have more revenue to combat this legal chicanery, Microsoft isn't going to dare try and put up a fight at that level.

    This is no doubt another assault by Ballmer and Co, while the rest of Microsoft is trying to compete again.
    nucrash
    Reply Vote

    • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

      @nucrash
      The first to sign an agreement is paying $5. All others are paying higher. It was an incentive to be the first to sign.
      midcapwarrior@...
      Reply Vote

      • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

        @midcapwarrior@...

        Well, B&N isn't paying the Microsoft tax and are actively fighting it over the Nook. Time will tell of course if B&N is successful or not.
        DonRupertBitByte
        Reply Vote

      • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

        @midcapwarrior@... Yeah, it is called extortion. Gangsta Bob with his homeboy Clippy is coming over in an intimidating manner, and saying, "Pay up or else!"
        Snooki_smoosh_smoosh
        Reply Vote

      • And on renewal day...

        @midcapwarrior@... "I'm altering the deal. Pray I don't alter it any further." - D. Vader.
        symbolset
        Reply Vote

  • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

    Every time I read an article like this I have to laugh that linux is paying Microsoft, then Microsoft turns around and uses that money to enhance the Windows Phone platform. Samsung would be better off to drop android and distinguish themselves with WP7. Its working out quite well for Nokia.
    LoverockDavidson
    Reply Vote

    • I get something different

      @LoverockDavidson - We see different things. What I see here are some opportunities to get into a long-term short position on these companies and make some good fun money.

      No company stupid enough to sign one of these contracts is viable in the long term. The history is replete with examples.

      The logic is simple: on renewal day they want to license the same patents they licensed before for the same purpose - to make Android products. Microsoft competes with Android products, wants to make them terrible and/or nonexistant. These companies are not in a good negotiating position because if they can't get Microsoft to come to terms (which Microsoft is not compelled to do) they they must exit this line of business forever or go to court. And the courts will look at the fact that they licensed the patents previously and not be kind.

      Even before renewal day, Microsoft can just buy more patents and dun them again. Are the Nortel patents covered? I thought not - that deal isn't closed yet. Brad Smith of Microsoft even jokes about it when he tweeted about the Wistron deal: https://twitter.com/#!/BradSmi/status/88239362524971008

      This is a game for suckers. The only way to win is not to play. But even us spectators can place our bets, and that's nice.
      symbolset
      Reply Vote

      • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

        @symbolset "The only way to win is not to play"...
        or become an attorney...
        GaryAmundson
        Reply Vote

  • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

    Microsoft acting like a little bitch again. Was thinking about getting a Windows tablet, screw that!
    ConceptVBS
    Reply Vote

    • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

      @ConceptVBS : Boo hoo. I think Microsoft won't miss you.
      Gis Bun
      Reply Vote

    • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

      @ConceptVBS With that attitude, I doubt you were ever "thinking" about buying any MS product, just trolling?
      sunilgmishra
      Reply Vote

    • RE: Report: Microsoft wants $15 from Samsung for every Android handset made

      @ConceptVBS perhaps you can explain why Microsoft can't sue blackberry. Is it because blackberry has created their own OS and haven't 'borrowed' from anyone else? I am sure blackberry will be very happy to license their OS to samsung.
      panoslondon1
      Reply Vote
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