Microsoft and HTC announce a patent licensing agreement

By on Apr 28, 2010 at 1:06 PM
General April 28, 2010

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With Apple and its team of lawyers breathing down its back, HTC has been exploring opportunities to quickly bolster its patent library and provide protection for its Android efforts. HTC was rumored to be eyeballing Palm’s large treasure chest of patents, and its acquisition potential, but reportedly snubbed its nose at the ailing handset manufacturer after a closer look at Palm’s financial status. Rather than gamble on a sinking ship, HTC turned towards Microsoft and has signed a licensing deal with the software giant from Redmond. Under the agreement, Microsoft will provide broad coverage under it’s large patent library for HTC’s Android handsets while HTC, in exchange for this patent umbrella, will pay an undisclosed amount of royalties to Microsoft. Horatio Gutierrez, corporate VP and deputy general counsel of intellectual property and licensing at Microsoft had this to say about the deal:

Microsoft has a decades-long record of investment in software platforms. As a result, we have built a significant patent portfolio in this field, and we have a responsibility to our customers, partners, and shareholders to ensure that competitors do not free ride on our innovations. We have also consistently taken a proactive approach to licensing to resolve IP infringement by other companies, and have been talking with several device manufacturers to address our concerns relative to the Android mobile platform.

What do we make of this? Is this strictly business, or is Microsoft simply getting back at HTC for all of their Android efforts?

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  • 3 Phones Jugglin

    Its More like….

    “we hate you guys for abandoning us in favor of an OS other than our own….But We Hate Apple. So jus Slide us a couple dollaz and we’ll help keep them off your back”.

    “The enemy of my enemy is my friend”

  • MichaelB

    For those of you wondering how this helps HTC, it’s roughly the following:

    1. MS and Apple both have lots of patents.
    2. HTC does not have many patents.
    3. Apple sues HTC, and if they can prove that HTC products are covered by Apple patents, it’s game over. HTC’s defense is “no we’re not.”

    But, once MS licenses their patents to HTC, we get:
    4. Apple sues HTC says “We’re not using Apple’s patent at all. See, what we’re actually doing is covered by this MS patent, not that irrelevant Apple patent. Oh, and by the way, maybe we can challenge the validity of some Apple patents based on MS patents.”
    5. Apple replies “Are too using our stuff, and we may challenge some MS patents too.”

    Suddenly the whole lawsuit is a lot more complicated, expensive and risky for Apple. Instead of being a one-way bet against HTC, it turns into a major skirmish with one of the other huge holders of software IP.

    Note that none of that has anything to do with the merits of the case. Regardless of the merits, this makes it a much different case.

    • Cynder70

      This is very likely true. It’s not about truth, it’s about what you can prove in court.

      The benefit isn’t necessarily to Android or HTC, it’s actually the opposite. This will put HTC back into the Microsoft mobile effort. It also satisfies Apple’s effort to demonstrate Android is not free.

      • andy

        android fans might have to more. godfather microsoft gets paid first then the rest of the crew.. really sad day

      • andy

        android fans might have to pay more. godfather microsoft gets paid first then the rest of the crew.. really sad day

    • Larry

      There is a serious gap here somewhere…

      HTC did all of this BEFORE M$ got involved. So Apple’s lawsuit is about Android on HTC devices prior to any agreement they have with M$. This kind of logic is silly. It’s like saying I murdered that guy but after the fact the made murder legal.

      If companies can violate Patents and then simply partner with other companies who have patents that are similar then there really is no point is having the patents in the first place.

      My guess is that Apple pursues this anyway. M$/HTC would create a really bad precedent for others to follow if they back down.

      This really isn’t about android being free or not, it’s about people or companies being properly compensated for the work they’ve done or the investments they’ve made.

    • Cynder70

      Interesting twist. Turns out it was Microsoft that believes Android violates the Microsoft patents as well.

      History shows that Microsoft will license the technology to the manufacturing partner in exchange for… what? We don’t know that part yet.

      http://tinyurl.com/37pf6y7

  • Darnell

    Smart move by MS, if Android wins, they win. If WM wins, they win.

  • Cingulair

    All of you are wrong. This is the nature of the mobile beast today. Apple only did what someone else would have eventually done. Think MS or Nokia wouldn’t have sued, if Apple hadn’t. Apple was just trying to beat them to the draw in the patent license game. First to claim infringement gets rich when then patent infringer does. The previous ties with MS and HTC just gave MS a better opportunity. Look at how Nokia sues as well. Apple was just the first to notice that HTC is getting rich off of making devices and hardly owns any patents and wasn’t hardly paying for licensing rights. While software makers for the devices it makes MS and Google are paying out the Ying Yang for the software that HTC is putting on these devices. HTC just licenses the software. How many patents go into software though. They were walking away fat. Now like others they have to pay to play.

    Posted from BGR Mobile (iPhone) at: Location Unknown.

  • Cingulair

    @Cynder70,

    You’re right. The only thing is the one collecting cash on this deal is MS instead of Apple. HTC is gonna pay regardless.

    Posted from BGR Mobile (iPhone) at: Tuckahoe Virginia, USA

  • Fritz

    ITS all bulshit…
    Microsoft always do it.
    Speak, SPeak, but never show what kind of patent/name are under shadow.
    ITS a kind of BLACK MARKETING, TIPICAL from BALMER AND FRIENDS.
    What they doesnt understand.
    Or dont want understand ( Say linux break patent do more revenue doing a black marketing than the real thing). Is.
    If they show what one is violated.
    1- World will know its weak things, that already doesnt matter or already is something everyone use. Like public domain. that no one in Justice will win.
    2-EVERYONE from linux or comnunits just change the code ( most of time, this violation can be a little, silly thing)., and donne.
    what they will blame after?
    Look at… ALL ADNROID sistem or linux kernel, AND JUST 250 violation alegation.
    Imaginate if Microsoft open the source of the Window KERNEL?

  • BizGuy

    High five to HTC.
    An honest handshake of appreciation to Microsoft.

    Screw you, Apple! lol.

  • http://wirelesssynergy.org/products.htm T

    Infringements on the rise. Read Pending Patent Application 12/220,295 claim 3 http://portal.uspto.gov/external/portal/pair

    http://wirelesssynergy.org/products.htm

    Large Screen Mobile Phone Devices (regardless of their names or types) are infringing on above patent application…stay tuned

  • Jayhammy

    I don’t believe this hurts HTC at all. Like some other commenters here, I think it actually protects them from Crapple. The deal doesn’t say HTC can’t make Android phones anymore–that would create animosity between MS and HTC. Instead, HTC continues to create great devices that rival Apple’s and can run TWO OS’s: Android and MS’s. HTC was smart to do this with MS and not fight them. Who knows? Maybe MS will buy HTC?

  • kurt

    Are we now to hate both Apple and Microsoft? Apple now thinks courts are better than marketplace competition, and M$ gets to cash in on their competitors innability to take on Apple.

    The real question I see is, “What happened to Google?” Wasn’t google in to defend HTC on this? Was HTC really screwed or was the Apple war chest just too much?

    • Cynder70

      Today (April 29) Microsoft’s Horatio Gutierrez made a statement about resolving MS’s intellectual property issue with HTC and it’s use of Android.

      I’d look for a stronger response to Google from MS or that MS will continue to “license” each Android handset manufacturer.

      Microsoft and Apple are both making it known that Android is not a cheap or free alternative to handset makers.

  • meske

    If you all recall a new item from a couple months ago, MS basically stated that if a handset manufacture that manufactures for the WinMo platform will be protected by the MC Patent Umbrella if they were to be sued. HTC is already a WinMo manufacture, so, it makes sense that they would license the “like patents” that APPL is complaining about from MS and now they have MS to help or completely fight their battle.

    This also is great move on MS’s side, as they’ve just entered the fight via a backdoor loophole, so they don’t look like the bully by first suing apple for patent infringement. Great move on their part. And in this case, I believe if MS/HTC win, the consumers win.

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