Microsoft And Samsung Strike Licensing Deal; Samsung To Pay $15 For Every Android Smartphone They Sell
Microsoft and Samsung have signed a cross-licensing patent deal which will allow both companies to share patents for use in products, Redmond Pie has learned.
The news comes straight from a press statement released by Microsoft which announces the deal, stating that Redmond and Seoul have signed a “definitive agreement” to cross-license each other’s patent portfolios for use in upcoming products.
We heard about this potential licensing deal two months back in July when Reuters – a trusted news agency – reported that Microsoft wanted Samsung to pay a hefty $15 for every Android smartphone it sells.
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 already has struck deals with Android smartphone/tablet manufacturers like HTC and Acer (among others). According to an official blog post, Microsoft is also working to strike a licensing deal with Motorola Mobility, meaning that, in the future, we might see all major Android smartphone manufacturers in the US paying Microsoft a licensing fee for every unit they sell.
We heard back in May that Microsoft makes about five times more money from Android licensing deals than it does from Windows Phone 7. With so many more deals being struck since that news and seeing how Windows Phone 7 still hasn’t catched up to iOS and Android, we have a feeling that Redmond may be earning more than just five times from Android than it does from WP7 anymore.
We find it slightly odd how Microsoft hasn’t targeted fellow rival Apple Inc. with these licensing deals. There may be a technical reason for this, but if MS is letting off Apple intentionally then Google’s August statement about Apple and Microsoft running an “organized campaign” against Android may just be grounded in reality.