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Microsoft and LG reach Android licensing deal

MS and LG agree to Android deal

Korean tech manufacturer LG is the latest company to reach an Android licensing deal with Microsoft.  The agreement is similar to those signed with HTC, Samsung and others, but unlike them, also includes Google's Chrome OS.  Microsoft has benefited greatly from licensing deals.  One estimate had them making three times more off HTC's Android sales alone than their own Windows Phone 7. 

Microsoft attorney, Horacio Gutierrez, praised the "mutually beneficial agreement," noting that MS now licenses Android to 70% of all Android phones sold in the U.S.:

“We are pleased to have built upon our longstanding relationship with LG to reach a mutually beneficial agreement. Together with our 10 previous agreements with Android and Chrome OS device manufacturers, including HTC, Samsung and Acer, this agreement with LG means that more than 70 percent of all Android smartphones sold in the U.S. are now receiving coverage under Microsoft’s patent portfolio,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft. “We are proud of the continued success of our program in resolving the IP issues surrounding Android and Chrome OS.”

LG's Ken Hong sounded equally upbeat, saying that the deal allowed both companies to get back to what they do best, putting out products for consumers:

"We're of course pleased we could come to amicable terms with Microsoft, whom LG has had a great working relationship with for years. This agreement allows both companies to move beyond the legal issues and get on with doing what both companies do best, which is developing products and delivering services that benefit consumers."

The Chrome part of the deal has yet to come into play, though speculation is that it will involve LG's upcoming 3D Google TV.  As for the remaining 30% of the U.S. Android market, it looks like Microsoft's sights could next be set on Motorola Mobility, who was acquired by Google last year.  How fascinating would it be if Google has to pay Microsoft for using one of its own products?

Source: Microsoft; Via: AndroidCentral

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Comments

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selfcreation says:

LOL @ 70% of all android sells....
im gona start to support people that buy android phones soon.  GO GOOLE!!! keep feeding MS!! WOOT! lol

HeyCori says:

LG's response sounds like they're secretly biting their tongue. lol

aubreyq says:

LOL indeed it does!

Kon-Aitor says:

What is the likelyness of MS making more money off android than google?

RenatoFontes says:

as far as I know, that's exactly what's happening...

Yup, from what I've read MS are getting $5 for every Android device ت

Curtieson says:

You think Google only makes $4.99 or less for every Android device they sell?

RenatoFontes says:

I really dislike this from Microsoft...
They have a really innovative platform, they don't need to be competing on lawsuits but with products... u___u
 
this is the only reason that I have to move back to android...

HeyCori says:

Then move back to Android.
Companies will always protect their patents/IP.  If they don't then that's money wasted.

zoctan says:

Perhaps if Google wouldn't steal IP there wouldn't be a need for these lawsuits. Most corporations license IP from their owners when they want to use it.

aubreyq says:

^^THIS^^
One of the reasons Android's success was accelerated was because OEMs started cranking out phones without checking (or caring) if patents were being violated. Of course, they all knew Google would have their back. Motorola Mobility went as far as to hide under Google's skirt and got bought out by them. I actually think Motorola Mobility was specifically created so they could be bought out without the buyer having to acquire the entire Motorola company and make it easier to fight the upcoming lawsuits.

HD7guy says:

Your reasoning for moving back to Android escapes me. Microsoft protects patent, ergo you move to Android? Huh?
 
Incidentally, Microsoft might be required to actively protect its patents for various legal reasons. Could be shareholder related, could be to prevent the appearance of abandonment. Hard to say, that's what lawyers are for.

mrpakiman says:

it's better than sueing, it would be stupid if they didn't use their patents for their advatage.

xKophsx says:

so is ok a company or someone stealing IP from other people/companies that legally adquired them?

thats like saying, next time someone steals something from me im not going to tell police or do something about it, why, if i have the money to buy again what i got stolen, then its ok people stealing my stuff :)
 
but its ok, then i guess if it was about you and your IP and google were using it without paying or your permisson, you wouldn't do anything about it. rightt /s

jfreiman says:

Renato - go back to Android/Google.

If you and others don't understand about IP theft then there is nothing I can do about it.

I'm just happy knowing that these manufacturers know that it's less costly to pay MS for the infringed patents than to pay their attorney fees - which they will have to pay sooner or later for the current and impending suits brought by Apple.
Long live Metro.

Nataku4ca says:

actually this is the normal "u used my stuff, care to discuss mode" which is a hella better than the "u used my stuff, i sue u!" attitude that certain someone uses, which i like better
 
believe it or not, google did cheat in this respect, and if it wasn't true then all these oems wouldn't have agreed to the terms

selfcreation says:

google also had a lawsuite  trown at MS .. so you gona switch back to WP now? lol..... 

Mestiphal says:

Imagine you're a cop, and I'm a cop, and we're good cops, but you're a better cop than me.
Then one day you go home, and as you're putting your gun away, you find me having intercourse with your wife.
Would you use your gun, or would you talk things out because you're such a good guy...
Point is, it doesn't matter which OS is better, OEMs are making profit out of stolen intelectual property, and they need to pay for that.

Residing says:

RenatoFontes...On behalf of WP, thank you - your purchase of an Android device goes to further develop the WP platform :)
 
Toodles!

mhans311 says:

"One estimate had them making three times more off HTC's Android sales alone than their own Windows Phone 7."
 
This is kind of sad for WP7. 

HD7guy says:

Yes and no. Put it into perspective: how many Android phones are being sold compared to Windows Phones? Perspective on that: how many models of Android phones are carriers offering compared to models of Windows Phones?

jfreiman says:

That might be true - might, but Google makes so much on selling ads for their Android platform that it's difficult to say how much they are actually generating over the life of the device.
Google also makes a percentage from their app store.
Google is being more and more blatant with their monopoly practices than AT&T, IBM, Microsoft and Standard Oil and look at how they were all impacted?!
It's only a matter of time before they are under more scrutiny and begin to change/curb their business practices.
History will prevail.

xKophsx says:

wow this is nice! at least someone is paying for what google isn't. maybe motorola will pay and then google :D

jfreiman says:

Exactly! If Motorola does end up paying IP fees to MS it won't be without a fight in court.
However, if that happens I think MS will prevail and then Google will have to change their business model for the Android/Chrome devices - phone, music players, televisions, tablets, etc, etc.
That would be a huge loss for Google, but one they could well afford if application developers continue to use Google's ads in their apps.

jfreiman says:

I think that over time the MS Metro interface will prevail.

It's not only Google who has chosen to copy/emulate the UI and basic design it's also Samsung with Bado, etc.

With so many cooycats on the market the UI will become old fast and all vendors will be hurt by this.

Google may have the most to loose because they have a very limited business revenue source whereas Apple has many products, services and are insorcing more and more of the components of their iOS devies.
It will be 1984-2006 where Apple had tight control over the manufacturing and design of their products. This is before Apple began sourcing entire chipsets and CPUS from Intel. Before that Apple made all their logic in their Macsnwhich made then Macs.
Smart alternative to Microsoft's open platform and one that benefitted both parties.
Now we have to see if Google can be a long term part of this ecosystem.

aubreyq says:

I hope this also means LG will crank out a few Windows Phones. It'll make sense for them especially if WP's market share starts increasing.

noirsoft says:

Don't you mean "A few more Windows Phones"? My LG Quantum is definitely an LG Windows Phone.

BobcatRidge says:

It's a two'fer; It makes Android cost something and it funds the development of Windows Phone 7!  What more could you ask for?

scdkad says:

What exactly was Google and LG infringing on?

RafRol says:

I would bet that Microsoft is preparing a carefully worded lawsuit against Motorola.  Considering the success that MS has had so far against OEMs, there would be plenty of precedents in favor of MS.  Can you imagine the irony of Moto paying MS to use their parent-company's OS???