Google: Microsoft extorts profits, hinders innovation and is failing in smartphone market

Legal

Google issued an irate response to Microsoft’s cross-licensing agreement with Samsung, announced early Wednesday, in which Samsung will pay royalties to Microsoft for each Android smartphone sold. “This is the same tactic we’ve seen time and again from Microsoft,” Google said in a statement to TechCrunch. “Failing to succeed in the smartphone market, they are resorting to legal measures to extort profit from others’ achievements and hinder the pace of innovation. We remain focused on building new technology and supporting Android partners.” Microsoft has similar agreements in place with ViewSonic, HTC and Acer and analysts estimate Android pulls in three to five times the revenue that Windows Phone does for Microsoft. Read on for more.

The Redmond-based company issued a public response to Google on its blog on Wednesday afternoon. “We recognize that some businesses and commentators – Google chief among them – have complained about the potential impact of patents on Android and software innovation,” Microsoft’s general counsel Brad Smith and deputy general counsel Horacio Gutierrez wrote in the post. “To them, we say this: look at today’s announcement. If industry leaders such as Samsung and HTC can enter into these agreements, doesn’t this provide a clear path forward?”

Microsoft also explained that HTC and Samsung were responsible for more than half of all Android phones sold in 2011 in the United States and Microsoft admitted that, while there will be more drama, perhaps this is “the end of the beginning” for an “industry-wide assortment” of legal issues.

[Via TechCrunch]

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77 Comments
  • Travis “CityBoy” Sinclair

    Stop your whining Google, its business!!

  • Anonymous

    So all of a sudden it’s ‘stifling innovation’ to require payment for use of information, ingenuity, or hardwork that other companies steal AKK *borrow* from you? This whole thing is getting ridiculous… I think it’s quite the opposite actually… by requiring two bit hack software engineering companies (aka Google) to pay for what they *borrow*, they’ll think twice before borrowing again and actually try to come up with their own ideas or their own of executing an idea… I think this forces innovation not stifles it… Google always cry innovation stifling wolf whenever they are called out for their own engineers and developers cutting corners by taking code or ideas from other engineers without spending the time and putting in the work themselves to come up with concepts and methods of doing things and quite frankly I’m just fed up with this nonsense. You take someones idea, someones code, someones elses hard work, then you should pay. That simple… This whole ‘open’ farce is just a charade for Google to win the hearts of the open source community long enough to make them so biased that can’t see the truth in front of their faces. I hope Google gets sued to high heaven and have to make plea deals to make good on their ‘me too’ tactics they’ve been playing in the mobile marketplace… Wait until someone does it… see if it makes money, then all of a sudden you want to join the party and ride coat tails as long as you want. I type all this while staring at a Nexus S on my desk that I am now regretting.

    • Anonymous

      Everyone borrows from everyone in business.  It’s been that way forever…Apple did from Xerox and Microsoft did from Apple.  

      • Anonymous

        You forgot Xerox borrow from Doug E.

  • Anonymous

    It reminds me of how those mafia gangsters back in the days would go around asking for a sum of money for ‘protection’ (from themselves that is)

  • Anonymous

    Extortion is such an “ugly” word…perhaps a payment to the Godfather in gratitude for not sending the boys over…

  • Anonymous

    Microsoft has already been convicted of stealing IP.  End of story.

  • Anonymous

    Calling Google a “two bit software engineering company” just amplifies your ignorance about software engineering and Google in general.  Go play with your Kinect, tool.

  • Anonymous

    I guess everyone knows why Google bought Motorola now. The problem is Google’s legal team is not getting paid as much as Microsoft’s & Apple’s are! lol

  • http://twitter.com/JLWagz Jon Wagner

    Google does need to grow up, they are clearly the best of the bunch and when that’s the case other companies are going to want a piece of the action. Would Apple or MS like to be the fastest growing and most successful phone OS in the history of the world? Of course they would, but in some cases they just suck (yea Bada will probably overtake WP7), completely their fault but cant get mad that they try hard. Google needs to pop their collar and have a good laugh, no one feels bad for the guys on top.

  • http://www.facebook.com/people/Brian-Chau/618147054 Brian Chau

    Well at least MS is willing to sit down with Samsung to work out a deal. Apple, on the other hand, sue Samsung to stop them from doing their business.  

  • Ghiar

    googi cries stealing from someone isn’t but demanding compensation is  extortion i heard google for its double game 2face company.

  • Ghiar

    how foolish u guyz r when thinkin android is innovative do u even have a sense what ur talking even platform is innovative in its right .it took android 3 years to fix small itsy pitsy issues which made phones unstable app dont work on all phone they dont support old phone ,old phone ccannot upgrade they dont care about consumer when will u guyz understand this when was the last time u had same app working smoothly in all phone.when was the last time google supported u geek head dawwww never take back ur phone and ask for support they’ll thru at ur face. churning out phone and keeping them open does not mean innovation jailbreak ur phone itll have the same thing building a stable platform just like palm made it ,apple made it everything just works simple elegent n it work thats innovation.i hate to say but google made u fool by selling phone n showing u advertisements and made money while u guys waited for a new phone every month .such a jerkhead u guyz r.

  • Snake36

    The real problem here is the patent system.  It is completly broken.  For every feature there are probably a dozen or more patents that it might infringe on.  An example.  After Spotify came to the US some small company in the middle of no where decided to sue them for patent infringement.  Their argument you ask?  They claimed they have a patent on media being distrubuted over a digitial network…..  So no matter what you do someone will try and sue you.  I think thats what Google meant by saying it kills inovation, it scares the small guys from trying something new.

  • Peter Pottinger

    lulz microsoft and apple, failing at innovation since 2011. (oh hey didn’t that steve jobs guy get sick around 2011?)

  • Anonymous

    This is hilarious! Microsoft will be making more money off Android in the short term, stunting the growth of the highest selling Android manufacturers, and using that money to further their windows 8 ambitions. Google must be pissing themselves. Oh and Samsung and HTC will be shifting their focus to the Windows platform as a result as I’m sure Microsoft has given them very attractive licensing deals.

  • http://www.facebook.com/japultra Jason Nguyen

    Don’t litigate. Innovate. 

  • Anonymous

    I don’t know about patent law at all.  So I can’t speculate about the quality of US patent law.

    But clearly, these manufacturers by paying Microsoft are saying yes using the Android operating system infringes on Microsoft patents, so much so they aren’t fighting Microsoft, but are paying them.

    The law is the law.  If patent laws are bad, get them changed, but Google or any company can’t blatantly break the law and the justification be that because patent laws are badly constructed, they don’t have to obey those laws.

  • Tom Mann

    It goes to show, it’s not about what patents you’ve got, it’s how many top lawyers you’ve got to bully opposition with.

  • Anonymous

    Duh.  Same old Micro$oft….

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