Microsoft squeezes more revenue from Android thanks to new Quanta deal

Business

Microsoft announced on Thursday that Quanta Computer will begin licensing its patent technology for Android and Chrome-based smartphones and tablets. Microsoft will receive royalties from Quanta, but the terms of the deal not disclosed by either company. “We are pleased to have reached this agreement with Quanta, and proud of the continued success of our Android licensing program in resolving IP issues surrounding Android and Chrome devices in the marketplace,” Microsoft’s corporate vice president and deputy general counsel of intellectual property, Horacio Gutierrez, said. Microsoft has similar agreements in place with HTC, Viewsonic, Acer and Samsung, among others. Analysts estimate Microsoft pulls in three to five times more revenue from Android royalties than it does from its own Windows Phone devices.

Microsoft and Quanta Computer Sign Patent Agreement Covering Android and Chrome-Based Devices

REDMOND, Wash., Oct. 13, 2011 /PRNewswire/ — Microsoft Corp. and Quanta Computer Inc. have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for Quanta’s tablets, smartphones and other consumer devices running the Android or Chrome Platform. Although the contents of the agreement have not been disclosed, the parties indicate that Microsoft will receive royalties from Quanta under the agreement.

“We are pleased to have reached this agreement with Quanta, and proud of the continued success of our Android licensing program in resolving IP issues surrounding Android and Chrome devices in the marketplace,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft.

Microsoft’s Commitment to Licensing Intellectual Property

The patent agreement is another example of the important role IP plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 700 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft’s significant R&D investments and its growing, broad patent and IP portfolio.

More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing.

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

14 Comments
  • Anonymous

    Ouch.  Guess who designed and is now manufacturing the Amazon Kindle Fire?  Yup.

    • http://twitter.com/TheGroupRide The Group Ride

      And whom also make the BlackBerry PlayBook.

      • Anonymous

        Playbook’s QNX isn’t based on Android code, so they should be in the clear.

  • http://www.droiddoes.com/ Norm

    Seeing as how androids are usually sold for a penny or free that means the company with the most market share makes the least amount of profit

    • Anonymous

      Android is patent infringing shit. Microsoft is laughing to the bank.

  • http://twitter.com/yellowsnow75 Vu Truong

    They gotta make money somehow right?? its definitely NOT from Windows Phone

    • Anonymous

      beats having google reading everything you type so they can advertise specific things to you…

    • Anonymous

      Yet…..They lost large on XBox until the 360 took a hold, takes money to make money when your playing from the back.

    • Anonymous

      Android is money machine for Microsoft … LOL

  • Anonymous

    Quanta is not receiving broad coverage under Microsoft’s patent portfolio. They’re receiving broad protection from it.

    The patent situation in the world feels just about as fucked up as the copyright situation.

  • Anonymous

    And this is why I am becoming more and more concerned about Android’s future. It makes me wonder what exactly it is that they have that makes manufacturers so willing to pay?

    Basically, MS and Apple are trying to make the mobile OS industry a 2 horse race. I’m almost (not quite) certain that RIM is pretty much out of it. Unless they have a super, major trump card up their sleeve.

    But for me personally, I use both Android and iOS. I’m just wondering how much more manufacturers are willing to pay MS for something that they thought was free or open (Android OS)?

  • Louis

    Another victory for the folks at Microsoft. Google stole Microsofts patents and now they’re paying for it.

  • Ligname

    there is no way to stop MS to steal this money?

  • Anonymous

    MSFT acts like an insurance agent, they could offering all manufacturers for the patent insurance coverage without take them to court and serve.

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