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Irony Alert: Microsoft Profits From Each Google Gadget Rival Sells

Forget Windows Telephone. Microsoft’s cash cow is essentially Google’s Android.

The Windows giant is filling its coffers off of Google’s patent woes -- at the same time its own phone operating program struggles. Samsung, the second largest smartphone maker in the world, announced a patent licensing agreement with Microsoft on Wednesday that permits it to distribute phones operating Google’s Android operating technique.

The confusing three-way deal features a very simple net effect: Microsoft will be paid a royalty for each Android-powered device Samsung sells -- tablets as well as phones.

The arrangement is comparable to one made recently, if it was reported that another behemoth maker of Android-powered electronics, HTC, settled with Microsoft towards the tune of $5 for every phone it sold.

Such wrangling over intellectual property disputes may be aptly known as the “patent wars.”

“Together using the license agreement signed not too long ago with HTC, today’s agreement with Samsung means that this top two Android handset manufacturers inside the America have recently acquired licenses to Microsoft’s patent portfolio,” write Microsoft general counsel Brad Smith and deputy general counsel Horacio Gutierrez in a weblog post.

“These two companies together taken into account far more than 50 % of all Android phones sold within the U.S. more than the past year. That leaves Motorola Mobility, with which Microsoft is presently in litigation, because the only significant Android smartphone manufacturer inside the U.S. without a license.”

Microsoft sued Motorola and Barnes & Noble over Android-related patent claims inking licensing tackles many firms, including Acer and ViewSonic, and some lesser-known companies.
It had not been immediately clear whether has a similar patent deal with Microsoft due to its newly unveiled Kindle Fire tablet -- because it's depending on the Google Android OS.
Bing is at present inside the steps involved in acquiring Motorola for $12.5 billion -- this includes the company’s cache of valuable cellphone patents. The corporation has become vocal about Microsoft’s “hostile” tactics, who's believes to be a long-term technique to hamper Android growth.

“They need to make it more difficult for manufacturers to market Android devices. Rather then competing by building the latest features or devices, they may be fighting through litigation,” Google chief legal officer David Drummond remarked inside of a blog post.

Meanwhile, both Samsung and HTC also produce phones running Windows -- or “Mango,” as the newest iteration in the software program is referred to as. Microsoft released the latest update Tuesday for your mobile operating technique since the company looks to invigorate disappointing sales.

"Microsoft and Samsung begin to see the chance for dramatic growth in Windows Phones and we're investing to make that a reality," Windows Phone unit president Andy Lees said inside of a statement.

But fo the time being, they seem content to bank on the success of Android.
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