For this post I've decided to focus on another FOSS article, about how ZTE, one of the world's largest smartphone companies, has decided to enter into a licensing agreement with Microsoft. This event is significant because it marks the 20th mobile device maker to have received a license from Microsoft so as to avoid infringement through the use of the Android OS. Major companies such as HTC, Samsung, LG, and Nikon have each entered into similar licensing agreements that grant them access to Microsoft's global portfolio of patents, which Microsoft states on its website is the way things should be, "to recognize the value of others' creations in a way that is fair". Microsoft's Corporate Vice President estimated that approximately 80 percent of Android smartphones sold in the U.S. and a majority of those sold worldwide are now covered by licensing agreements. The real question now is, to those companies who have yet to sign with Microsoft, how long will they be able to survive and stave off Microsoft in court?Google and their owned subsidiary Motorola have essentially refused to acknowledge the need to enter into a licensing agreement with Microsoft, and they have encouraged all of the mobile device producers not to do so either, yet twenty of them already have. What does this mean for Microsoft and for Motorola? Twenty companies believed they would be exposed to litigation by Microsoft if they did not do the licensing deal; this indicates to me that if Microsoft were to sue Motorola today over Android related patents, Microsoft would likely win. Historically, companies like HTC and Samsung have already engaged in several patent battles over mobile devices, yet we find them waving a white flag in the face of Microsoft - clearly indicating they believe a battle in court with Microsoft would be unprofitable. It must be obvious to the legal teams of these twenty companies that a licensing deal would be less troublesome than going to court. So why hasn't Motorola done a similar deal yet?
Link: http://www.fosspatents.com/2013/04/just-like-one-week-ago-when-foxconn.html
Huge for Microsoft, as the amount they'll get from royalties will make up a lot of money that the Windows phone is failing to make.
ReplyDeleteMicrosoft just really has a hold on patent licenses. The funny part is that Google has tried Android device makers from entering into these royalty agreements with Microsoft. This feels almost anti-competitive to me...
ReplyDeleteI think what would be really interesting to see is an 2012 internal Google cost-breakdown between licensing Microsoft patents and purchasing Motorola Mobility. In 2012, I spoke with a Berkeley student who had interned at Qatalyst and had worked on the Motorola deal who suggested that the Google executives were in a tremendous rush to buy Motorola and were subsequently willing to pay a significant premium for the company. In retrospect, maybe directly licensing from Microsoft would have been a more efficient usage of Google's resources.
ReplyDeleteI think this licensing deal is very good for Microsoft. In a way it is protecting themselves from entering any crazy kind of war and while Google is fiercly competing with Microsoft it will be interesting to see what happens in the near future between these 2 companies.
ReplyDeleteMicrosoft is doing work in the android patent space. They are definitely making a good return on their IP investments. Will be interesting to see where this goes.
ReplyDeleteMicrosoft relies on licensing for revenue, and they are good at it. This is a short answer on why Microsoft is successful so far in patent litigation against Google and Motorola.
ReplyDeleteMicrosoft knows that providing licensing deals like this will be much more profitable than taking everything to court. Android really needs to be careful how much influence they let Microsoft have on them.
ReplyDeleteMicrosoft has done well for themselves with this licensing deal. They stand to make a lot of money from royalties this way. They are making full use of patent litigation, and getting a steady source of revenue from this!
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