Microsoft Demanding $15 From Samsung For Each Android Device

July 6, 2011 | By Pradeep

We all know Microsoft is on a roll to make patent licensing agreements with Android OEMs. Since last week, Microsoft have announced 4 such deals without disclosing the amount of royalty involved. Today Reuters that Microsoft is demanding about $15 per Android device from Samsung, one of the largest android OEM in the world. Microsoft is also ready to lower the royalty amount if Samsung agrees with some deeper alliance related to Windows Phone smartphone making. Microsoft signed similar deal with HTC last year, Will Samsung also join the fray soon? I hope Samsung agrees with Microsoft on the later deal of less royalty amount for Android devices and more Windows Phone smartphones. Also analysts predict Samsung to ship about 19 million smartphones this quarter, if the deal is done Microsoft will get about $1 Billion IP licensing revenue from Samsung alone in a year..

About Pradeep Viswav

Pradeep was a Microsoft Student Partner when he was pursuing his Computer Science & Engineering degree. He now works for a MNC. He is passionate about technology and loves to share his knowledge with people. People used to mention him as “A Geek who is not Nerd”. He was fascinated by the Metro Design language and Windows Phone which made him to follow and develop applications for it. Follow him at twitter.com/pradeepviswav

Tagged android, microsoft, patents

http://twitter.com/domineus Malcolm Williams

This is not a good quarter for Samsung
First apple, now microsoft. Geez!

Smith

Android is not free. That’s what OEMs should knew from the beginning. All Google services (and products) are rip off from other comapnies work. So when you start making business base on something from Google you should know you will have to pay the price. Nothing is free in this world.

pyre

Doesn’t really matter if Android isn’t free. Android sells. WP7 doesn’t. If Microsoft had any faith in WP7 they wouldn’t need to do the patent shakedown, but given that they aren’t going to make a dime on WP7 trying to squeeze out a few bucks per Android device is about as solid a mobile strategy as they are going to have.

Ryo

I think Microsoft is making more money from Android then from WP7.

Monkey D Black

yeah looks like it for now
http://www.facebook.com/profile.php?id=1006545138 Muhammad Arif

Hey, the money can be used to develop WP7. Not a bad strategy.

rsgx

And to sway OEM’s Android.

Win/win.

http://twitter.com/Chassit Kane Gao

Pretty sure about that…

Next to milk Moto and Sony Ericsson. Har har har!
David

It may look like this for now bt in near future you will see they make enough money from WP7 as well. and maybe even more than what they make from Android now.

Just remember XBOX! When they first launched XBOX everybod saying oh they have no chance to compete with Sony and they gonna fail and lots of BS.

Look now and see how XBOX is full ahead and a big winner.

The big picture here is Microsoft has many important products that everbody use. They are making all these products compatible with each other and they alll works nice with each other these days. this is where Microsoft is gooing.

All these products and services Windows, Windows Server, Windows Phone 7, Office, Office 365, Xbox, Zune (service), Live, Skype, .Net, and etc. All are going to work as one huge ecosystem that works perfect with each other and each complete the others.

So in future you will see they will make more money from WP7.
http://chmun77.myopenid.com/ Jimmy

Yup…. That’s how MS works….. Low moves…. Can’t earn from WP7, and now they demand a slice of the pie from Android…. Tsk tsk tsk….

http://www.searingarrow.com AlienSix

Does that equivocation make you feel better?

Anonymous

Maybe they can take that money hire more engineers and get us Mango faster. so my Phone can be on equal terms.

http://fxfp.com/ Alex F.

Increasing size of development team does not always help.
http://twitter.com/Chassit Kane Gao

Yes. Hire another 200 engineers, spend about 3 months on helping them to catch up with everything, and another 1 month for WP7 OS development training. Redefine groups and units, rebuild team cooperation scheme. Then we could have Mango as early as maybe April 2012. Sounds like great plan…

Got to have a bit more patience on Mango, man.

OK I’m trying to convince myself…

Lulz

Now if they could find some way to squeeze Apple and I’ll be in heaven. Haha.
Guest

Well Android is just mix of other companies innovations and patents. They didn’t do anything special or come with any innovation in Google for Android. They just copied everyone else work. Therefore they ahve to pay for it. Thats why you see Apple sue all these OEMs because some part of Android is stolen from Apple work (We know Apple steal from others as well but thats not what we are talking about here) even if it is a little. And also some important parts of android stolen from Microsoft innovation on mobile area from Windows Mobile time and other areas.

And those have price they have to pay for it. But since Google offering it for free to OEMS (fooling them like Android is free!) they don’t have to pay for it but OEMs making money from it so they have to ay royalty.

Everybody can say whatever they want about this deals but the truth is Microsoft protecting their IP and research and what they did to improve echnology all tis years. So someone can’t just come use it and make money from it for himself without paying royalty.

The main thing here is OEMs have to udrestand Android is NOT free. Google just fooled them and it is time to wake up and know that Adroid is not free and maybe not very profitable as it looked in first place.

http://profiles.google.com/todor.kainy Todor Tsvetkov

Wow … please don’t think that OEMs are THAT dumb … they know what they are doing, they know the risks, they are not some monkeys eating bananas all day … they know their job and believe me they know Android isn’t free … that free bullshit is for the press and for the fanboys to brag about it … nothing more, nothing less.

Anonymous

The real baseball bat Microsoft is swinging at Samsung’s head is a little OS called Windows 8. Samsung can either come to a licensing deal on Android now or they won’t be allowed access to Windows 8. Who do you think will win? mmmmBAHAHAHAHA

Peter

Sorry! I don’t think Windows 8 doing anything with this story.

But everybody knows that all these new products from Microsoft including Windows 8 is going to be a big hit and successful like recent products (Windows 7, Office 2010, etc.) so for their own good and for their own future they know they need to work with Microsoft.

Windows Phone 7 (and later WP8) will be one of the major players around the world in near future. I think Samsung is smart enough and knows this so they will come with agreement at the end anyway. It just a matter of time.

Anyway Windows 8 is nothing to do with this as of right now since it is not out but if OEMs don’t want to play nice and pay for something they had to pay at first place then yes later Windows 8 can be their nightmare when they don’t get license to use it in their device or simply pay more than others for it.

As of right now this is all about Google (Android) stolen many things from Microsoft IP.

Anonymous

Windows 8 is definitely part of this “negotiation”. I’m sure HTC is already way ahead of Samsung in working on a tablet for Windows 8. Why? Because they have been paying Android royalties all along. It takes months to prep an OS with your OEM’s. Microsoft knows this, Samsung knows this. I guarantee you that HTC is already working closely with Microsoft on a tablet running Windows 8. Why? Because HTC has been paying Android royalties all along to Microsoft. Samsung will either pay up or see HTC, Dell, Acer, Asus, Sony and HP beat them to market with a cool Windows 8 tablet next year.

Anonymous

Awesome.
Ram

It would be funny to see Microsoft making more money than Google on Google’s platform. It is pretty sure that Google’s plan of creating Microsoft free world is backfiring on them. . Most of Google fanbois don’t realize that Google’s no evil mantra is actually not for Google. Of course once their fanbois realize this, they are no more fanbois.
Anonymous

Guess how much Microsoft charges for each WP7 device? $15
See the message they are sending?