Microsoft inks licensing deal with Compal, boasts of grip on Android ODMs

Business

One week after announcing a similar deal with Quanta, Microsoft on Sunday revealed a new licensing arrangement with consumer electronics original design manufacturer Compal Electronics, Inc. The Redmond, Washington-based software company has reached a deal with Compal whereby it will receive royalty payments on sales of Compal’s tablets, cell phones, eReaders and other devices powered by Google’s Android or Chrome platforms. With this new deal in place, Microsoft also now holds licensing agreements with more than half of the worlds Android and Chrome ODMs. ”We are pleased to have reached this agreement with Compal, one of the leaders in the original design manufacturing, or ODM, industry,” Microsoft’s deputy general counsel Horacio Gutierrez said in a statement. ”Together with the license agreements signed in the past few months with Wistron and Quanta Computer, today’s agreement with Compal means more than half of the world’s ODM industry for Android and Chrome devices is now under license to Microsoft’s patent portfolio. We are proud of the continued success of our licensing program in resolving IP issues surrounding Android and Chrome.” Microsoft’s full statement follows below.

Microsoft and Compal Electronics Sign Patent Agreement Covering Android and Chrome Based Devices

Agreement provides broad coverage under Microsoft’s patent portfolio.

REDMOND, Wash. — Oct. 23, 2011 — Microsoft Corp. and Compal Electronics, Inc. have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for Compal’s tablets, mobile phones, e-readers 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 Compal under the agreement.

“We are pleased to have reached this agreement with Compal, one of the leaders in the original design manufacturing, or ODM, industry.  Together with the license agreements signed in the past few months with Wistron and Quanta Computer, today’s agreement with Compal means more than half of the world’s ODM industry for Android and Chrome devices is now under license to Microsoft’s patent portfolio,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft.  “We are proud of the continued success of our licensing program in resolving IP issues surrounding Android and Chrome.”

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/.

19 Comments
  • http://twitter.com/GRZLA Grizzly Atoms

    Software patents are the bane of innovation.

    • Anonymous

      Good for Microsoft!!! Google made a puzzle with Android made of the work of too many other people! Eat it Google!

      • Anonymous

        Um, you do realize apple has cross-licensing patents with microsoft, right?  And just for clarification, these are hardware vendors paying the fees, not google itself.  So google is not eating anything other than dessert right now. 

      • http://twitter.com/GRZLA Grizzly Atoms

        Thanks for doing the leg work on that one. Most people on that comment here aren’t intelligent enough to comprehend licensing deals.

      • Anonymous

        Google is eating it because this makes their POS(Piece of Sh!t) OS less attractive to OEMs. Why do you think that Google execs are mad in all their interviews?! You know even less than you appear to when you originally opened your mouth! Now stop the leg humping! LOL!

      • http://twitter.com/GRZLA Grizzly Atoms

        Since you are on the inside enlighten us a little. You apparently know more than everyone here regarding the subject. If OEM’s had problems with Android’s attached legal troubles then why are we seeing more and more top level Android devices hit the market? Samsung has been in litigation with Apple for over a year thanks to Android, yet they made the newest flagship device for Google. Motorola with the Droid RAZR and even HTC with the Rezound. 

        Please enlighten us why these companies are still making Android headsets? They are clearly making money.

  • Jimsg4

    Microsoft is going to make more money from Android than Google.

    • http://twitter.com/GRZLA Grizzly Atoms

      Google doesn’t exactly make money from Android. They provide Android to vendors for free, they make money on the services bundled with the phones.

      • Anonymous

        They make money on advertising. The “services’ are just a portal to those adverts

  • http://pulse.yahoo.com/_TX2FGFJSLNVZH7RKEV6BZ6SHUI Thomas

    No matter how much Microsoft licenses their patents, the bottom line is still the consumer who is not BUYING their products….They just don’t get it, Windows and Office will eventually be outclassed by open source alternatives, and their operating system just keeps pace with the true innovators of our time!

    • sirpaul

      OpenOffice can barely hold a candle to Word. Sure, it works for grandma who wants to write a letter, but is missing lots of the advanced functions Word has. It isn’t even expensive.

      • Anonymous

        Agreed. And Pages is even more of a bargain if you are a Mac user.
        Openoffice is a prime example of why open-source fails – no money to reinvest. 
        Android is not open-source, it is stolen IP hiding under an open-source banner for Google’s convenience.

    • Anonymous

      I think the Microsoft strategy is terribly flawed.  By licensing their portfolio to Android partners they are opening (not closing) the door to future market share losses.  If Samsung is now bulletproof from future Android lawsuits and injunctions from Microsoft is it more or less likely to pursue Android development? 

      The bottom line is right now Android is the only way for OEM’s to promote their own brand.  I like Windows Phone 7 (WP7) but every device looks and acts exactly the same.  This may be great for Microsoft and Qualcomm but it is pretty terrible for OEM’s.  The only way they can compete is price and that is a replay of the commoditization of PC’s.  I know what Microsoft favors that model but the OEM’s have not forgotten they make very, very little money selling PC’s.  Why would they want to repeat this with smartphones?  

      The sector needs a true third competitor to Android and iOS but I fear it is not Microsoft. 

    • Anonymous

      Windows and Office are still selling as well as ever and open-source alternatives are still failing. And before you start, Android is not truly open-source, it is a rip-off masquerading a open-source for Google’s convenience.

  • http://pulse.yahoo.com/_TX2FGFJSLNVZH7RKEV6BZ6SHUI Thomas

    To the TRUE INNOVATORS: “We buy Microsoft, only because their are no alternatives!”

    • Anonymous

      Mac OS, Ubuntu, Fedora,….. The list goes on.

  • Anonymous

    Microsoft: “Hey Samsung, HTC, et al you have to pay me for using Google’s stolen product OR else…”

    Android OEMs: “Sure Boss..we will just have to pass the extra cost to our idiot consumers either by marking up our product or building the handset with junk parts encased with plastic OR both. You know since we have started ripping you off (and Apple too) might as well rip off our customers too. (Hush..we’ve been ripping them off all these times)..”.

    Google: “I think that would work.”

    Microsoft: “OK OEMs, on top of you paying me royalties, you have to align your future devices to our Windows OS”

    Android OEMs: “We will see how your Nokia product line goes after its release. If it goes well, we will kiss Android goodbye”.

    Microsoft: “I’m glad you are using your tiny brain Android OEMs. Because if you adopt Windows OS you won’t have to pay royalties no more, well, of course Windows OS has licensing fees too, he-he-he…but we can work it out, dummy.”

    Google: “OMG, I’m screwed !!!”

    Apple @ Google: “See, I told you. You cannot rip off the REAL INNOVATORS forever”.     

    • http://twitter.com/GRZLA Grizzly Atoms

      So the consumer is paying for this? I haven’t noticed phone prices out of the ordinary? LTE devices are more expensive due to the cost of building an LTE radio, but that is about it.

  • http://twitter.com/Linds2476 Linds2476

    I wish someone would speculate on the numbers or at least the structure of the deal.  Is Compal paying for each and every device?  a yearly fee,  if so how much?  

blog comments powered by Disqus