Although Microsoft might be struggling to get its Windows Phone 7/8/X platform/OS out there, its mobile revenue isn't low compared to many of the OS leaders including Apple and Android. Microsoft has received $792 million in patent royalties from just two companies in a single quarter [Q1/Q2 2012], Samsung and HTC, according to the analyst firm Trefis. The Boy Genius site reports that analysts at Trefis provided those numbers. They based them on estimates that HTC pays Microsoft $10 per Android device in patent royalties, and Samsung pays between $10 and $12 per Android device in patent royalties.
And that's hardly the end of the story. Now Microsoft and Nikon, the world leader in imaging products, have signed Android patent agreement, according to a Microsoft news release. According to the release, "[t]he patent agreement is another example of the important role intellectual property (IP) plays in ensuring a healthy and vibrant IT ecosystem." In addition, “Microsoft and Nikon have a long history of collaboration, and this agreement further demonstrates the value that both companies place on responsible IP licensing,” said David Kaefer, general manager of Intellectual Property (IP) Licensing at Microsoft. “Microsoft is proud to align with a leader in the digital camera industry to license Android technology for the benefit of Nikon’s customers.”
Who's on the list? Samsung, HTC and LG, now Nikon.
Microsoft is definitely proud of the way it deals with patent infringement. Microsoft pledged to make clear its own patent holdings and urged other companies to do the same. Microsoft said it would publish by April 1, on the Web, information that would allow anyone to determine which patents the company owns, Microsoft General Counsel Brad Smith said in a blog post. Smith had participated earlier today on a panel discussion in Washington, D.C., on software patents and the patent system sponsored by BSA | The Software Alliance and the National Association of Manufacturers. Microsoft also called for a “loser pays” system in patent cases as a way of deterring frivolous lawsuits, particularly from “patent assertion entities” — firms that acquire patents but most often do not use those patents to manufacture products of their own.
Source: http://blogs.seattletimes.com/microsoftpri0/2013/02/21/microsoft-signs-nikon-to-android-patent-licensing-deal-pushes-for-patent-reforms/
Microsoft also has Google entangled in Google Maps technology use in violation of one of its patents... It looks like while Microsoft is a dinosaur in the industry, it's managed to get a hold of and manage its IP well.
ReplyDeleteAt this point, I wonder what percentage of the sale of an iPhone or an HTC Android, or a Nokia Windows Phone is actually going to Apple, HTC, and Nokia/Windows, given that there are so many royalty claims (e.x. Qualcomm). It seems like Microsoft is calling for increased clarity in the smartphone patent system, which should reward it and other "dinosaur" companies that have been around for a long time, due to their massive patent portfolios.
ReplyDeleteMicrosoft is interestingly driven by revenue through patents and licensing. The initial platform created by Bill Gates was an operating system for every platform. Therefore, it is fitting that residuals are Microsoft's primary source of revenue.
ReplyDeleteI'm going to comment a bit about Sandy's comment. For a "dinosaur" in the industry, it does generate a lot of revenue for its technology that seems standard to most technologies today, but it still lags behind a bit in terms of front end technology. Yet, bleeding edge tech companies like HTC still have to pay royalties despite the financial burden Microsoft places on them. For the industry of mobile phone, the law very much drags its feet behind technology, and the side effects are much observed.
ReplyDelete-James Maa