Samsung Agrees To Pay Microsoft Royalties On Android Sales
Microsoft announced on Wednesday that the company has signed a cross-licensing agreement with Samsung. As a result of the agreement, Microsoft will be receiving royalties from Samsung for its Android-powered smartphones and tablets. Additionally, Microsoft mentioned that the two firms will continue to cooperate on the Windows Phone operating system.
“Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” executive vice president of global product strategy at Samsung’s mobile communication division Dr. Won-Pyo Hong said. “We are pleased to build upon our long history of working together to open a new chapter of collaboration beginning with our Windows Phone “Mango” launch this fall.”
Microsoft has similar agreements with HTC, Acer and ViewSonic, and it is estimated the company’s revenue from Android is three to five times greater than the revenue it receives from its own Windows Phone operating system.
Google on the other hand has issued an irate response to Microsoft’s cross-licensing agreement with Samsung. “This is the same tactic we’ve seen time and again from Microsoft,” Google said in a statement to TechCrunch. “Failing to succeed in the smartphone market, they are resorting to legal measures to extort profit from others’ achievements and hinder the pace of innovation. We remain focused on building new technology and supporting Android partners.”
Microsoft issued a public response to Google on its blog shortly afterwards stating the following:“We recognize that some businesses and commentators – Google chief among them – have complained about the potential impact of patents on Android and software innovation,” Microsoft’s general counsel Brad Smith and deputy general counsel Horacio Gutierrez wrote in the post. “To them, we say this: look at today’s announcement. If industry leaders such as Samsung and HTC can enter into these agreements, doesn’t this provide a clear path forward?”
The Redmond-based company also explained that HTC and Samsung were responsible for more than half of all Android phones sold in 2011 in the United States. While there will be more drama, maybe this event marks “the end of the beginning” for an “industry-wide assortment” of legal issues.
You can read Microsoft’s full press release regarding their cross-licensing agreement below:
Microsoft and Samsung Broaden Smartphone Partnership
REDMOND, Wash — Sept. 28, 2011 — 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 and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality,” said Andy Lees, president, Windows Phone Division, Microsoft. “Microsoft believes in a model where all our partners can grow and profit based on our platform.”
“Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” said Dr. Won-Pyo Hong, executive vice president of global product strategy at Samsung’s mobile communication division. “We are pleased to build upon our long history of working together to open a new chapter of collaboration beginning with our Windows Phone “Mango” launch this fall.”
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.