Samsung to pay Microsoft royalties on Android device sales

By Todd Haselton on Sep 28, 2011 at 3:01 PM

Business September 28, 2011 at 3:01 PM

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.

Tags:: Agreement, Android, Cross-licensing, Microsoft, Royalties, Samsung, Windows Phone

35 Comments

http://twitter.com/GRZLA Grizzly Atoms

Samsung can and likely does receive loyalties from Microsoft as well due to their patent on 3G radios. If anything this just solidifies that Samsung will always be a manufacturer of WP7 devices. That is good news for WP7 users.

dwinsmith

Microsoft doesn’t make anything with a 3G radio, so that makes no sense.

sirpaul

“… As a result, will pay Microsoft royalties…” > “Samsung, as a result, will pay Microsoft royalties…”
Seeyou

Say what you will about MS, instead of constant legal suits, they just pimped manufacturer’s for royalties.

Anonymous

It will also help make Android, and even Samsung’s TouchWiz better.

Anonymous

How’s that? Android has already been using MS’s tech, hence the deals and the lawsuit with Motorola. Sorry but Android devices will remain shitty for the foreseeable future.
Anonymous

You obviously missed the Galaxy S2. Anyway, opinions are like……
Anonymous

Lol

Pinktacoyummmmm

if you still you pay plain and simple! Good for msft!

now goog is crying like babies!

http://twitter.com/cyberb0b Bob Autrey

If you “still”… really? Look who’s spelling like babies..

Major Plonquer

Look who’s spelling like babies..
That would be ‘like a baby’ don’t you think?

Anonymous

HAHA Eat it Gargle and lamedroid makers, EAT IT

Drew

Umm… did you READ the article?? It’s called a cross-licensing A G R E E M E N T…

http://www.facebook.com/richard.gilboy Richard Gilboy

In other news, Microsoft has agreed to lend Samsung patents under the table to give the shaft to Apple.

Anonymous

Unfortunately they can’t do that. MS and Apple already have a patent exchange in place, and Samsung are fighting a trade dress suit, as in attempting to pass their devices off as iOS devices, so it won’t help.

Anonymous

I’m sure that MS also adviced SameSung to please not copy Apple’s hardware design too much with their W7 phones.
http://twitter.com/GRZLA Grizzly Atoms

You are as moronic as your numetal goatee.

Anonymous

I hate this! What an underhanded way of doing business. “We will sue you for more unless you do more business with us” That’s not what I pass on to my kids as a way of doing business.

Bullyboyb

Then your kids will grow hungry.
In the capitalistic world you have to be the hunter or you become the hunted.
Unfortunate state of affairs but that what you get when shareholders constantly require higher returns. the money has got to come from somewhere and new ways of making money will be found, come hell or high water.
Anonymous

Google can just stop making Android without infringing. I bet MS will be more pleased by this outcome.
Anonymous

What are you talking about? MS instead of going to immediate litigation and law suits, approaches companies who they feel are infringing on their patents and says, “Hey take a look at these patents we own and how you seem to be using them. How about we come to an agreed upon licensing agreement so we don’t go to court and waste a ton more money there?”

Then during the negotiation of said agreement Samsung or MS suggests that perhaps they can come to an arrangement regarding WP7 that will lower the cost of licensing the patents in dispute.

All parties agree to final terms, sign papers, and enact the agreement.

How is this underhanded business? This IS real world business played out fair and square, without you placing emotional links to the deals.

Anonymous

I beg to differ in the following way.
MS says that Android is infringing its patents. But it has not sued Google. I say, Drag Google to court and prove that. Put your case in the Open.

MS does not state what is being infringed. Instead it threatens to sue the manufacturers of Android for possible IP violations. Then draws a settlement with each of the manufacturers with “The terms of the settlement have not been disclosed…”.

That way it can keep everybody with the illusion/talk in the air like “Hey xyz.. company has settled with MS. That means Android infringes MS IP. So that means xyz… agrees with MS that Android infringes. So Google is a copycat….”. Thus they give a free reign to MS to continue with this Charade! In the cut-throat Android market business, which company will like to have the fear of being sued by MS and coughing litigation expenses.

MS tried the same trick with Linux only to find it fail pathetically. When Redhat would have “none of it”, it did a cross licensing of patents with Novell Linux. Here was the fun. It actually paid 180m USD to Novell in the form of MS buying the rights to sell SuseLinux to its customers. As a part of the agreement, any Linux user can be assured that MS would not take them to court IF & ONLY IF they use Suse Linux as the LINUX software.
With REDHAT openly coming and saying F**k Ya and stating MS’s shenanigans, MS could do nothing. SuSE till then loved by the community was screwed bcos of this.

This is real world blackmailing masquerading as business
Anonymous

Well you’re right patents aren’t 100% enforceable until they are held up in court, however, if all these companies (Big ones mind you such as HTC and Samsung) are not willing to try and make MS enforce them in court, means they are pretty sure MS has a solid case. Only Motorola has, and was looking like even they were getting ready to make a deal until Google swept in and bought them up.
http://www.twitter.com/wixostrix WixosTrix

They haven’t sued Google because they aren’t the ones making money of the per-device sales. They only make money from the advertising revenues and licensing for Google Apps. If you do your research you can find what the patents Microsoft is referring to. They are likely all the same for each company seeing as the patent violations pertain to Android itself.

Google should have just been responsible and made a deal with Microsoft, as well as any other company whose IP is being infringed upon, so the OEMs would have to pony up the dough. Everyone else is paying for the technologies they use that they don’t own, including Microsoft. Google should as well.
Major Plonquer

Microsoft didn’t sue Google because Google is not directly profiting from Android – they say they ’give it away’. Android manufacturers are directly profiting from Android and hence from Microsoft’s patents.

However, in the ongoing case of Oracle vs Google where Oracle are suing Google directly, when the judge stopped laughing at Google’s claim that they aren’t making money from Android, he ruled that ALL of Google’s global advertising revenue is supported by Android and can be considered for damages calculations.

This means that Google is now DIRECTLY fair game for anyone to sue and if they receive an adverse judgment it could well bankrupt the company – particularly in California with its TRIPLE damages law. Looking at all the suits of Anyone vs Android Manufacturer, every suingle case has either been settled in favour of Anyone or, seeing the case is unwinnable, Android Manufacturers everywhere have agreed to pay royalties.

What’s more interesting is that if you Google the word ‘thief’, you get a picture of Larry Page.

http://twitter.com/transverberate Ben

Man, it’s a good thing Google bought Motorola to supposedly protect Android from patent issues.

Without knowing exactly what the patents involve, I’d be thinking Samsung agree that they’re infringing. They’ve shown they’re more than willing to countersue and go up against patents they think are invalid (ie, Apple’s.)

Anonymous

I’m thinking it has to be valid. No way would these companies just give MS money.

Anonymous

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Anonymous

Dude, go market your bullshit somewhere else.

http://jpearls.myopenid.com/ earls

I’d love to know what the patents are. They must be substantially important or extremely generic.
http://MobileGenius.wordpress.com JM

I wonder how many patents going back through Windows Co, Pocket PC/Windows Mobile, and other ventures are being violated in the current race to build smartphones. Microsoft should be credited (and likely paid) more than they probably are.
Atezzi

Awesome picture.
http://twitter.com/CLlENTAV_N3O4TT Lee Sixta

~~ Just two words for Samsung … Ha, Ha …

[s]
Guest

Samsung is not really concerning much, since they are working on their own OS (Bada and Tizen). Pretty soon, they will tell MS to take a hike!
Anonymous

Samsung…. Use your power sales to your advantage and can w7 devices before it gets to big. If Msft wants to go back to itz old ways and start acting like apple…sigh

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