Following the example set by HTC and Acer, Samsung has signed a cross-licensing deal with Microsoft which will result in the South Korean giant paying MS a royalty fee for each Android device they sell in order to protect themselves from any future patent lawsuits.
Samsung also produces some of the best WP7 smartphones and the Windows 8 tablet give to developers at the BUILD conference, so maintaining a clean and smooth relationship was the best option for both parties involved. Here’s the full press release:
Microsoft and Samsung Broaden Smartphone Partnership
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.
It is interesting to see the opposing stances of Microsoft and Apple against Android manufacturers, with Microsoft attempting to squeeze royalties and Apple attempting to block sales completely. It is easy to note that many of the Android manufacturers are also WP7 manufacturers, and so Microsoft has no desire to get them offside – and simply wants payment for its patents, whilst Apple competes more directly with them. However Apple uses components from the various electronics giants such as Samsung and LG as suppliers – so you would imagine they would also not appreciate poor business relations. No, the variation in stance is more to do with Apple struggling maintain its technological lead in smartphones and tablets, and instead of innovating (something WP7.5 definitely is doing), they are trying to prevent competition.
Microsoft’s stance is not a bad business decision either, with the Redmond company expected to take home $444 million from Android royalties in 2012 – a larger sum than they make from their own Windows Phone 7 operating system. Clever.