Microsoft demands Samsung pay $15 per Android smartphone sold

Over the past few weeks Microsoft has been inking deals with several manufactures over royalties when producing Android handsets. And now Microsoft is going after Samsung, and they are asking for $15 per handset sold that is running the Android platform.

According to Reuters, Microsoft is demanding that Samsung pay $15 per Android handset sold to Microsoft for royalties on patents that they own. It is also being reported that if Samsung were to form a deeper alliance with Microsoft, the payment could drop to $10 per handset.

These high royalties are a backdoor method to persuading manufactures from producing Android handsets. It is obvious that Microsoft has the information needed to force royalty agreements after several large companies have already agreed to Microsoft’s terms. While we don’t know if the $15 per handset is true, any royalty is a big win for Microsoft as they can now profit off of Android phone sales too.

If Microsoft is successful, we could begin to see more Windows Phone hardware in the marketplace as it could become cheaper for manufactures to adopt Windows Phone rather than Android.  Either way you look at it, Microsoft is benefiting from Android sales, something Google surely can’t be happy about.

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89 Comments

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This is the kind of thing that makes me hate Microsoft although as much as I like Microsoft, I really like my Android.

FloatingFatMan said,
Sounding like extortion to me... Have Microsoft's so called patents even been proven to apply to Android in court yet?
+1

FloatingFatMan said,
Sounding like extortion to me... Have Microsoft's so called patents even been proven to apply to Android in court yet?

That's the whole point. If you have a patent, then it's your responsiblity as a company to contest it if someone else violates the patent.

FloatingFatMan said,
Sounding like extortion to me... Have Microsoft's so called patents even been proven to apply to Android in court yet?

If they weren't legitimate, I don't think the OEM's would be settling... Clearly there's something there. And as Android has been shown to have directly ripped Java code, I wouldn't be surprised if there was more going on than we may even suspect...

MS Lose32 said,
You forgot the /s

Nah, he's right in his post. Sarcasm tags are only great for comments like:
"Android is a better OS than WP7."
"Microsoft shouldn't keep its intellectual property."
"Open-source and Linux software are known for their innovations."
or even....
"Android is a good OS."

PlogCF said,

Nah, he's right in his post. Sarcasm tags are only great for comments like:
"Android is a better OS than WP7."
"Microsoft shouldn't keep its intellectual property."
"Open-source and Linux software are known for their innovations."
or even....
"Android is a good OS."

You forgot the /s

Mineria said,
I bet that most of the bashers above this reply don't even know what patents and royalties mean.
Nubcakes.

dont royalties have something to do with the queen of england?

Mineria said,
I bet that most of the bashers above this reply don't even know what patents and royalties mean.
Nubcakes.

Plus they think saying "M$" makes them look cool and 133t.

Mineria said,
I bet that most of the bashers above this reply don't even know what patents and royalties mean.
Nubcakes.
...OR... maybe they DO know what they are but they just don't believe in them.

MS Lose32 said,
...OR... maybe they DO know what they are but they just don't believe in them.

That's the perfect defense for a patent lawsuit. I know I was ripping off somebody else's work, but I refuse to believe in the patent laws, ergo your lawsuit is flawed. Good luck with with that

Max Norris said,

That's the perfect defense for a patent lawsuit. I know I was ripping off somebody else's work, but I refuse to believe in the patent laws, ergo your lawsuit is flawed. Good luck with with that
It's possible to follow a law, yet think it's f'ing stupid at the same time.

codename.venice said,

Microsoft.. what a loser company

Yep, Apple , Microsoft, suing or collecting patents....Losers;)

Max Norris said,

Lol wow.. wish I lost so bad that my bank account was as big as theirs. /s

Actually what happened was that their account went so far into the negative that it just started over because the bank database couldnt store that many digits.

ILikeTobacco said,

Actually what happened was that their account went so far into the negative that it just started over because the bank database couldnt store that many digits.

It underflowed?

Twisp said,

In sales? Yes. Technically? No.


Agreed. In sales, maybe. But there's no way that Microsoft looks at Android as an OS and turns green with envy over its technological sophistication. Please. We all know that WP7 brings far more to the table than Android does, technologically. The only thing keeping Andy afloat right now is lack of customer awareness of WP7, and once people realize that WP7 is simply the more elegant platform....

...bye, bye, Andy.

PlogCF said,

Agreed. In sales, maybe. But there's no way that Microsoft looks at Android as an OS and turns green with envy over its technological sophistication. Please. We all know that WP7 brings far more to the table than Android does, technologically. The only thing keeping Andy afloat right now is lack of customer awareness of WP7, and once people realize that WP7 is simply the more elegant platform....

...bye, bye, Andy.

+1

thealexweb said,
Greedy f******! Microsoft's mobile division must be desperately looking for some way to make money.

+1 This shows Microsoft really is a dying company when the only thing it can produce are patent lawsuits.

-1 across the trolling spectrum. Is it only ok when other companies do it, and where exactly is "dying company" coming from? Sources other than the RMS fanboy playbook?

thealexweb said,
Greedy f******! Microsoft's mobile division must be desperately looking for some way to make money.
Idiot, Patents are like a block of flats if you don't own them it doesn't give you the right to live there for free you want the use of a flat then you pay rent each week or you move out same goes for the use of someone else's Patents you wish to use them then you pay royalties or you don't use them DUH

Microsoft_Bob said,

+1 This shows Microsoft really is a dying company when the only thing it can produce are patent lawsuits.

Oh yeah that's it.

They do spend a lot on engineers and R&D, that's why they have the patents and the right to get royalties from them.

norseman said,

You want Microsoft hacked? I hope you have something bad happen to you and or fmaily sometime soon. Please let us know when you have lost an arm or a member of your family.

Wow! Is Microsoft really that important to you to be wishing injury and death upon others? Is Steve Ballmer your daddy or something?

MS Lose32 said,
Wow! Is Microsoft really that important to you to be wishing injury and death upon others? Is Steve Ballmer your daddy or something?

He IS Steve Ballmer

MS Lose32 said,
Imagine if Microsoft spent more on engineers and less on lawyers! Oh the things they could create!

So true. Nuff' Said,

MS Lose32 said,
Imagine if Microsoft spent more on engineers and less on lawyers! Oh the things they could create!
Probably fewer things, because they'd have lost masses of money in lawsuits.

MS Lose32 said,
Imagine if Microsoft spent more on engineers and less on lawyers! Oh the things they could create!

They do spend a lot on engineers and R&D, that's why they have the patents and the right to get royalties from them.

MS Lose32 said,
Imagine if Microsoft spent more on engineers and less on lawyers! Oh the things they could create!

Microsoft are the new SCO. They can't produce anything worthwhile so they try and degrade the experience (hike prices) for everyone else.

It's no coincidence that Microsoft chose this time to attack Samsung, who are already embroiled in a far reaching patent dispute with Apple. Samsung are weaker at the moment.

If I were Samsung, I'd cut all ties with Microsoft and stop producing WM7 phones in retaliation for their insolence.

MS Lose32 said,
Imagine if Microsoft spent more on engineers and less on lawyers! Oh the things they could create!

Microsoft are the new SCO. They can't produce anything worthwhile so they try and degrade the experience (hike prices) for everyone else.

It's no coincidence that Microsoft chose this time to attack Samsung, who are already embroiled in a far reaching patent dispute with Apple. Samsung are weaker at the moment.

If I were Samsung, I'd cut all ties with Microsoft and stop producing WM7 phones in retaliation for their insolence.

MS Lose32 said,
Imagine if Microsoft spent more on engineers and less on lawyers! Oh the things they could create!

Just imagine if they spent the money, they would probably create really hard to engineer products like, maybe Windows 7and upcoming Windows 8, or could you imagine a great server OS like say Windows server, or how about a real cloud platform like Windows Azure, or how about something like Office 365, you know products that are created for the most demanding of customers who want well, 100 precent uptime and pay you millions for your products and services.

Joe05 said,

Just imagine if they spent the money, they would probably create really hard to engineer products like, maybe Windows 7and upcoming Windows 8, or could you imagine a great server OS like say Windows server, or how about a real cloud platform like Windows Azure, or how about something like Office 365, you know products that are created for the most demanding of customers who want well, 100 precent uptime and pay you millions for your products and services.

Is Amazon EC2 not as real of a cloud platform as Azure?
Is Google Docs uptime any less than Office 365? If so, source please?
Is Mac OS not as hard to engineer as Windows 7/8?
Is Linux not as good for servers and web hosting as Windows Server?

Microsoft_Bob said,

If I were Samsung, I'd cut all ties with Microsoft and stop producing WM7 phones in retaliation for their insolence.

At which point they would get hit with anti trust lawsuits by US law. Same reason why Samsung can't say no to Apple.

MS Lose32 said,
Is Amazon EC2 not as real of a cloud platform as Azure?
Is Google Docs uptime any less than Office 365? If so, source please?
Is Mac OS not as hard to engineer as Windows 7/8?
Is Linux not as good for servers and web hosting as Windows Server?

I don't think that he's claiming that they aren't, just that MS has several solid engineering teams

MS Lose32 said,
Is Amazon EC2 not as real of a cloud platform as Azure?
Is Google Docs uptime any less than Office 365? If so, source please?
Is Mac OS not as hard to engineer as Windows 7/8?
Is Linux not as good for servers and web hosting as Windows Server?

Now I didn't say that Azure is the only cloud services around,Amazon has a great product though they were't part of the conversation, Google Docs has been out how Long now? 4 years? and they have very little success relatively speaking, and no..
It's not as well done as Office 365 or has the range of products or features.

Mac OSX? Nice OS , I have a MacBook pro and like it but, Apple doesn't have the customer base or the sheer number of different customers of Windows which run in the hundreds of Millions to over a Billion users.

Linux, once again not part of the conversation but I believe Windows sever has made solid inroads into that market as well and is ever bit as versatile is not more.

My point is that Microsoft does innovate in the enterprise as well as services and back end, another was that the enterprise market in generally a harder market to serve and service.

Regardless if Microsoft sold 100 million Windows phones , they would still go and reinforce their royalties and collect fees for violations of any intellectual property.

Microsoft_Bob said,

Microsoft are the new SCO. They can't produce anything worthwhile so they try and degrade the experience (hike prices) for everyone else.

It's no coincidence that Microsoft chose this time to attack Samsung, who are already embroiled in a far reaching patent dispute with Apple. Samsung are weaker at the moment.

If I were Samsung, I'd cut all ties with Microsoft and stop producing WM7 phones in retaliation for their insolence.

If you made the decisions for Samsung, they would've gone broke a long time ago.

Samsung will beat Nokia in terms of volume of smartphone produced soon. So. . .good for Microsoft. (And I think Samsung is going to resisit very hard, since its really so ginormous)


And why do Samsung have to pay more, than $5 for HTC?

FMH said,
Samsung will beat Nokia in terms of volume of smartphone produced soon. So. . .good for Microsoft. (And I think Samsung is going to resisit very hard, since its really so ginormous)

And why do Samsung have to pay more, than $5 for HTC?

prob due to the 'deeper alliance' that htc have with microsoft, i.e. they make wp7 phones

FMH said,
Samsung will beat Nokia in terms of volume of smartphone produced soon. So. . .good for Microsoft. (And I think Samsung is going to resisit very hard, since its really so ginormous)

And why do Samsung have to pay more, than $5 for HTC?

I would guess that MS originally went to HTC asking for $15. And it eventually got negotiated down to $5.

I expect something similar to happen with Samsung.

Poor Samsung. Getting stung by Apple AND Microsoft. I'd almost feel sorry for them if they didn't have such a crappy Android update policy.

While we don't know if the $15 per handset is true

CNN BREAKING NEWS: Nuclear blasts in the 20 megaton range hit Amsterdam, Rotterdam, Antwerp, Brussels, Berlin, Frankfurt, London, Manchester, Paris, Madrid, Barcelona and other major European cities.

...

We don't know if it's true though...

.Neo said,

CNN BREAKING NEWS: Nuclear blasts in the 20 megaton range hit Amsterdam, Rotterdam, Antwerp, Brussels, Berlin, Frankfurt, London, Manchester, Paris, Madrid, Barcelona and other major European cities.

...

We don't know if it's true though...

While those are major cities and would be foolish to state such a thing if it we're to be just a rumor, where as, this is a price tag which was most likely stated from a source who they cannot yet confirm whether its true or not - big difference..

.Neo said,

CNN BREAKING NEWS: Nuclear blasts in the 20 megaton range hit Amsterdam, Rotterdam, Antwerp, Brussels, Berlin, Frankfurt, London, Manchester, Paris, Madrid, Barcelona and other major European cities.

...

We don't know if it's true though...

Since i am still alive i guess not

An other note how come companies have to pay to Microsoft?

Dj_baby said,

Since i am still alive i guess not

An other note how come companies have to pay to Microsoft?

MS owns a whole lot of patents, so it becomes a pay us to use them, or we sue, or we have the courts block sales of your devices in regions that recognize our patents

Morphine-X said,
While those are major cities and would be foolish to state such a thing if it we're to be just a rumor, where as, this is a price tag which was most likely stated from a source who they cannot yet confirm whether its true or not - big difference..

You always take things this serious and literal?

Neobond said,
I must be out of the blast zone in Haarlem

The fallout will get you!

boumboqc said,
Good microsoft.
The only thing I want is Apple back where they from. HELL

What? Apple has nothing to do with this article...

Phil DeLong said,

What? Apple has nothing to do with this article...

Microsoft gets bigger, apple will get crush. Simple as that. Nuff' Said.

boumboqc said,

Microsoft gets bigger, apple will get crush. Simple as that. Nuff' Said.

look at the number. The biggest enemy of Apple is not MS but Android...

I hope Samsung won't give MS anything ...

NesTle said,
I hope Samsung won't give MS anything ...

What good will that do? No matter who you like or hate, a court said one party has the valid claims to a patent and that another is using them without paying.

It is also being reported that if Samsung were to form a deeper alliance with Microsoft, the payment could drop to $10 per handset.
===================
Thats the real reason. They will get them to produce more WP7 devices and W8 tablets.

the better twin said,
It is also being reported that if Samsung were to form a deeper alliance with Microsoft, the payment could drop to $10 per handset.
===================
Thats the real reason. They will get them to produce more WP7 devices and W8 tablets.

As long as Samsung either A) Discloses minor revisions to the builds or B) Makes no minor revisions to their builds so upgrades for WP7+ don't take months and months to troubleshoot and the carriers/Microsoft learn of them at the last second.

flexkeyboard said,
"While we don't know if the $15 per handset is true.."

Way to title this article Sam.

Way to not understand the article flex. The post is citing an article that claims the $15 bounty (which is currently a rumor), then the author of this post added his own commentary to indicate that the rumor is not fact. Don't be a trolling douche.

shamburg said,

Way to not understand the article flex. The post is citing an article that claims the $15 bounty (which is currently a rumor), then the author of this post added his own commentary to indicate that the rumor is not fact. Don't be a trolling douche.

He's not trolling, he's right. The title states a fact that is then dismissed or questioned in the article.

jakem1 said,

He's not trolling, he's right. The title states a fact that is then dismissed or questioned in the article.

Did you read the original article? The author wrote according to what it said. Just saying . . .

Reuters claims that the $15 is true, since I can not confirm this information, I have the believe the source is correct but can not confirm it. Reuters typically does not make up news by the way.

flexkeyboard said,
"While we don't know if the $15 per handset is true.."

Way to title this article Sam.

Who is Sam?

Looks fine here, can't personally confirm it, add doubt?