Thursday, September 29, 2011

Samsung to pay Microsoft for each Android Handset it ships

Most people think that Google does not charge device manufacturers for Android. And they are right. However, for some time now, at least HTC has been paying for Android but not to Google. HTC has to pay to Microsoft because of some certain patents. Today, Samsung joins HTC which makes two of the three largest Android handset manufacturers pay Microsoft for each device they ship.

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.”

Certainly a bad day for Android. First Amazon releases an Android based tablet that not only does not mention in it’s press release that it’s based on Android, but looks nothing like Android and will not be able to use Android market either. And then this.

About Abbas Jaffar Ali

Abbas Jaffar Ali is the founder of tbreak.com and a blogger, geek and self-declared tech pundit who can't stop talking about technology. Find him on twitter as @ajaffarali

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