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Microsoft signs Android licensing deal with Samsung

Microsoft has just signed a massive patent deal with Samsung on every Android tablet and smartphone the manufacturer sells, which will earn the software giant royalty revenue per device in addition to being a cross-licensing deal. Microsoft had previously signed a similar deal with HTC and Acer and Viewsonic, but this is said to be the largest Android patent deal to-date.

Microsoft general counsel Brad Smith and top IP lawyer Horacio Gutierrez said in a blog post:

"Together with the license agreement signed last year with HTC, today’s agreement with Samsung means that the top two Android handset manufacturers in the United States have now acquired licenses to Microsoft’s patent portfolio. These two companies together accounted for more than half of all Android phones sold in the U.S. over the past year."

While the deal focuses mainly on patents and Android, it also calls for Samsung to continue to work with Microsoft on Windows Phone, which is a massive bonus for Microsoft (and customers). Something that will hopefully combat what the manufacturer was rumoured to be doing in 2013 - leaving Windows Phone. Unfortunately the exact amount that Microsoft will earn per-device sold wasn't disclosed, could be $15?.

This just goes to show how companies can work together to overcome lawsuits galore.

Source: Microsoft, via: Android Central

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Comments

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IanLorenc says:

So, the rumour that Samsung were to bow out of WP, was most likely a bargaining chip then?

Maybe, maybe not. If the licensing fee is $15 or even $5, don't see how threating 'bowing out' from WP7 helped Samsung - Samsung still had to 'pay the piper' regardless. But earlier reports show that they've been negotiating for a while now. Still no news of chatON for WP, though; but not sure that WP even needs it or if WP users would want it.

The advantage of threatening to bow out was that they could agree to come back in, potentially removing a different concession from the table.

Jf.Vigor says:

$15 per device, that's just nuts lol. Microsoft stay winning. I have a thing for winners. They're usually hated on, but I always admire their persistence because that's what makes them successful. First things to come to mind - Microsoft, Jay-Z, myself...lol

selfcreation says:

lol , Samsung would never have left WP ..... and never will....they where second in line for WM behind HTC . and now they are oprobly first ahead of HTC for the time being (untill Nokia comes out ) this is more great news! *SEE WORLD HOW ANDROID IS NOT FREE** hehe ;)

theman60099 says:

Samsung will never be above HTC, sorry.

selfcreation says:

they are ahead of HTC as we speak!! ( for WP any ways ) personally for you maybe not better , but the fact is, they are out selling HTC,LG,DELL. (for the time being )

theman60099 says:

is this why HTC has a higher CSR than Samsung?

selfcreation says:

samsung has sold MORE WP7 units then HTC in the past year....dont be a hater cause you dont agree with facts.

snowmutt says:

This is a just fantastic news. Microsoft knows how to cut a deal, don't they? Seems like years ago when they entered into talks with Samsung. Patience pays off. Keeping the quality of Samsung in the fold for WP is more important than whatever they settled for in royalties. I still think HTC is seen as a better WP partner and the hopes for a world presence is on Nokia, but there is no downside to this deal for Microsoft.

bonecrusher says:

Samsung pays Android royalties to Microsoft, and then Microsoft spends some of that money on joint WP7 marketing and development.Microsoft has smart business people: use a competitor to help fund your products.

futurix says:

I look forward to Galaxy SIII being released first for WP8 :-)

I guess we will all see how the fruits of the deal. Seems as though Microsoft would have somehow negotiated a minimum number of devices produced...Samsung releases multiple Android devices, but only 2 WP devices so far, with only 2 more on the way - that volume simply pales in comparison; actually, that volume pales in comparison to the number of bada devices they release!Here's hoping that T-Mobile, Sprint, and Verizon will also get some Samsung WP devices in 2012.

selfcreation says:

expect allot more Wp from samsung with this deal!! (i hope any ways)but considering WP is still a new OS the amount of phone growth is actually prety good . we getting mroe and more.samsung gave android the GS 1 , we got the focus +omniasamsung give android the GS2 , we getting the focus S and Omnia wwe actually ahead of android phones right now by a 2/4 ratio ..

HeyCori says:

*looks at Android picture*bwah hahahahahaha

MaulerX says:

It seems that those earlier (now confirmed to be wrong) reports on Samsung abandoning WP7 was a case of someone not being privy to what was really going on. In retrospect it just didn't make sense. Congrats to Microsoft. It also seems that OEM's have very little faith on Google's acquisition of Motorola. Things are really starting to play out now.

Dave Evans says:

"This just goes to show how companies can work together to overcome lawsuits galore"I'm sorry but to many people this simply reads...."do more business with us or we will sue you for more". Not the most impressive way of doing business. They tried this very same tactic with Motorola and they told them to go pound salt. With recent rumours it sounds like Samsung came dangerously close to the same decision.Microsoft impresses me in many ways, this isn't one of them.