Samsung to pay Microsoft royalties on Android device sales

Microsoft announced on Wednesday that it has signed a cross-licensing agreement with Samsung. As a result, will pay Microsoft royalties for its Android-powered smartphones and tablets. Additionally, Microsoft said the two firms will continue to cooperate on the Windows Phone operating system. “Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” executive vice president of global product strategy at Samsung’s mobile communication division Dr. Won-Pyo Hong said. “We are pleased to build upon our long history of working together to open a new chapter of collaboration beginning with our Windows Phone “Mango” launch this fall.” Microsoft has similar agreements with HTC, Acer and ViewSonic, and it is estimated the company’s revenue from Android is three to five times greater than the revenue it receives from its own Windows Phone operating system. Read on for the full press release from Microsoft.

Microsoft and Samsung Broaden Smartphone Partnership

REDMOND, Wash — Sept. 28, 2011 — Microsoft announced today that it has signed a definitive agreement with Samsung Electronics Co. Ltd., to cross-license the patent portfolios of both companies, providing broad coverage for each company’s products. Under the terms of the agreement, Microsoft will receive royalties for Samsung’s mobile phones and tablets running the Android mobile platform. In addition, the companies agreed to cooperate in the development and marketing of Windows Phone.

“Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality,” said Andy Lees, president, Windows Phone Division, Microsoft. “Microsoft believes in a model where all our partners can grow and profit based on our platform.”

“Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” said Dr. Won-Pyo Hong, executive vice president of global product strategy at Samsung’s mobile communication division. “We are pleased to build upon our long history of working together to open a new chapter of collaboration beginning with our Windows Phone “Mango” launch this fall.”

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

 

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