Microsoft going to make even more money off Android, signs new deal

Last month, Neowin covered a story in which Microsoft earns $5 for every HTC Android that is sold worldwide. However Microsoft have recently signed a patent deal with rugged computer manufacturer Itronix, over the patents that it uses. This ultimately means that for every Itronix computer that's sold, Microsoft will be paid a certain amount of money in return, which will most likely match what it arranged with HTC earlier this year.

Those in Redmond won't be seeing the same income as it agreed with the lucrative HTC deal, however it will bolster the company's revenue and reputation, as Apple struggles to keep a hold of their market share from competition. Horacio Gutierrez from Microsoft's IP and Licensing department said that "we are pleased to have reached this agreement with General Dynamics Itronix, which is an example of how industry leaders address intellectual property".

Microsoft have been chasing up on certain companies recently due to the software giant's desire to protect its patents, which it feels are being breached by some Android manufacturers. Microsoft has shown a history in the past of seeking alternatives to a lawsuit regarding a patent breach, so this fits in with the company's usual strategy.

Creating a deal in which you are able to charge another company for using a registered patent isn't necessarily a bad idea. According to VentureBeat, they have speculated that Microsoft could have gained $150 million from the HTC licensing deal as of May, which was five times more than what revenue the company was gaining from Windows Phone. It would be no surprise if Microsoft spent the money it was gaining from Android on bettering the Windows Phone platform.

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Dude: Sir, the android users are saying they have complete freedom and they're pointing fingers at WP7.
Horacio: Well, *puts on sunglasses*, the fingers are now pointing at them.
YYYEEEEEEEEEEEEEAAAAAAAAAAAAAAAAHHHHHHHHHHHHHHH!

No one says anything when the antitrust is going on. Now just patent and some ppl just flipped. Besides it's not google fault for being open source and every company start milking android

Between the Java code theft allegations and Google refusing to protect companies legally regarding Android patent infringement suits? I have to say I'm not thrilled. If the lawsuits had merit, why didn't Google protect them and thus other Android handset makers? Microsoft is offering legal protection with its WP7 partners. Has Google even gotten involved with the payment patent suit? Or are they letting Apple handle everything?

I won't say Google is a good guy or bad guy, but I don't think they're as responsible as they should.

This is pure profit, that Microsoft is getting. Only a small lawyers fee, but other than that raw profit.

FMH said,
This is pure profit, that Microsoft is getting. Only a small lawyers fee, but other than that raw profit.
You should be so proud of Microsoft! Getting so much money for so little work! Does it bring a tear to your eye?

MS Lose32 said,
You should be so proud of Microsoft! Getting so much money for so little work! Does it bring a tear to your eye?
" MS Lose", did that make you feel hurt?
Awww, poor you.

Five times more revenue?! It just shows how pathetic MS' phone is... OR that the marketing people are doing a REALLY bad job.

I think it's both

Tpiom said,
Five times more revenue?! It just shows how pathetic MS' phone is... OR that the marketing people are doing a REALLY bad job.

I think it's both

Microsoft doesn't make phones. Fail.

How anybody could think that Microsoft is an honest, respectable company is beyond me! You don't see articles about Google suing its competitors everyday.

MS Lose32 said,
How anybody could think that Microsoft is an honest, respectable company is beyond me! You don't see articles about Google suing its competitors everyday.

And MS is not suing anyone here, it's simply an article about how MS and another company have made a patent deal. That's it. This happens all the time, and it almost never makes the news

Sraf said,

And MS is not suing anyone here, it's simply an article about how MS and another company have made a patent deal. That's it. This happens all the time, and it almost never makes the news

True. It was an agreement, not a lawsuit. But still, why do Microsoft, Apple, and Oracle have to be so lawsuit-hungry?

MS Lose32 said,
How anybody could think that Microsoft is an honest, respectable company is beyond me! You don't see articles about Google suing its competitors everyday.

It's called licensing mate. Lets say that you create something and I want to use it, obviously you'd want to be paid for all that research and development costs.

Billus said,

It's called licensing mate. Lets say that you create something and I want to use it, obviously you'd want to be paid for all that research and development costs.

What if i added a simple feature such as in-app purchases or a virtual PageUp/PageDown key. How would I even know if that has been patented before? Where would I check? Do I just wait until I get sued? That does not sound like a good system to me. I think it could use some improvement, don't you?

Sraf said,

And MS is not suing anyone here, it's simply an article about how MS and another company have made a patent deal. That's it. This happens all the time, and it almost never makes the news

No one , out of his free will , signs an "agreement" to pay Microsoft royalties on open source application. They, like many other companies using Linux/Android, were bullied by lawsuits, which would maybe cost them millions and drag years in court, before agreeing to sigh such an agreement. Motorola didn't surrender, and Microsoft doesn't dare such a move against Google. All remember Microsoft's SCO fiasco.

MS Lose32 said,
How anybody could think that Microsoft is an honest, respectable company is beyond me! You don't see articles about Google suing its competitors everyday.

You are missing what is happening here...

1) Android contains a lot of things that are copies of Microsoft technology. (This is true of Linux as well, Microsoft leaves the OSS community alone as they are not profiting indirectly or directly off of it. However, when they do Microsoft steps in and shows them their cards under a NDA, so it isn't a veiled threat, it is enough evidence that the companies are willing make a deal with Microsoft. This is why companies like HTC and RedHat have made agreements with Microsoft.)

2) Microsoft is also proving a point, Google don't care about its users, and Microsoft does and even offers free assistance if they get sued. If someone stepped in to sue Dell or HP or Sony or Toshiba or etc for a feature of Windows or even a feature of the computer that Windows supports, Microsoft would be there with a team of lawyers to defend them, as they take full responsibility of the licensing in Windows. Google looks the other way, sadly.

3) In a way this is all a way of calling out Google, and saying, if you truly believe Android is clear of other technology, then step out and do the right thing. Which won't happen, because if Google does ever step in to protect an Android using OEM, it would be checkmate for Google and Android, and this wouldn't matter if the company suing the Android OEM was Apple or Microsoft, both have the patent and background arsenal to destroy Android completely - especially Microsoft.

4) In the late 80s and early 90s Microsoft was slapped with a lot of lawsuits for technologies in Windows and Windows NT and even freaking networking in Windows 3.11. Microsoft went to the source, found merit in a lot of the cases, and offered them licensing fees or technology swaps, as there were features of NT that some UNIX OS companies wanted access to, etc. Microsoft was more than willing to pay up for access to technology that even 'looked' like technology from various proprietary UNIX and other OSes. The technology 'swaps' that the UNIX companies took, were later used by Linux, and still are as one small example of why Microsoft 'knows' they have code/technology running on Linux.

BTW...
Nobody stepped in back in the late 80s or early 90s to defend Microsoft and nobody then asked, "Why where UNIX vendors such lawsuit trolls in the late 80s early 90s?"

alexalex said,

No one , out of his free will , signs an "agreement" to pay Microsoft royalties on open source application. They, like many other companies using Linux/Android, were bullied by lawsuits, which would maybe cost them millions and drag years in court, before agreeing to sigh such an agreement. Motorola didn't surrender, and Microsoft doesn't dare such a move against Google. All remember Microsoft's SCO fiasco.

If by bullied you mean giving a stack of proof under an NDA, then ya, they are being bullied to do the right thing.

Motorola is hoping for a 'better' deal or kickbacks of other technologies, they really aren't standing up and expect to win anything. The likely outcome of Motorola will be them getting a Nokia type deal with special access to technologies they want, like from the Microsoft Hardware GPU engineers, etc.

Are the payment and WP7 revenue amounts confirmed or is the author just pulling them out of a hat (for want of a better word that begins with ar)?

efjay said,
Are the payment and WP7 revenue amounts confirmed or is the author just pulling them out of a hat (for want of a better word that begins with ar)?

well since no one knows the actual sales im guessing its made up.. i think they did 1.5 millon x $20 but notice that does not cover bing advertising and app sales like xbox live titles.. also sales of their online services like sharepoint and exchange.... remember they are like google making money from things associated with wp7 and not just the direct sale..

Just shows how bad windows phone 7 (windows mobile 7) is actually doing if their making 5X more profit from android than their on windows phone 7 itself.

Biglo said,
Just shows how bad windows phone 7 (windows mobile 7) is actually doing if their making 5X more profit from android than their on windows phone 7 itself.

It is very ironic that you're better off if the competition beats you in the marketplace xD

Biglo said,
Just shows how bad windows phone 7 (windows mobile 7) is actually doing if their making 5X more profit from android than their on windows phone 7 itself.

Windows Phone just came out 6 months ago, Android has been out for a few years. I remember when no one even heard about Android, and only one of my friends had a phone with Android running. The more mature WP7 gets, the better competition it will be for Android.

zombieChan said,

Windows Phone just came out 6 months ago, Android has been out for a few years. I remember when no one even heard about Android, and only one of my friends had a phone with Android running. The more mature WP7 gets, the better competition it will be for Android.

I'm waiting for the Nokia phones and then I'm jumping over from iOS if they're good.

zombieChan said,

Windows Phone just came out 6 months ago, Android has been out for a few years. I remember when no one even heard about Android, and only one of my friends had a phone with Android running. The more mature WP7 gets, the better competition it will be for Android.

Android rolled in to the market with one phone on one of the smaller networks, Windows Phone 7 rolled out with multiple handsets, loads of networks and a huge huge advertising budget, bit of difference between the two launches there.

thealexweb said,

It is very ironic that you're better off if the competition beats you in the marketplace xD


People in forums call it ironic, shareholders call it smart.

thealexweb said,

Android rolled in to the market with one phone on one of the smaller networks, Windows Phone 7 rolled out with multiple handsets, loads of networks and a huge huge advertising budget, bit of difference between the two launches there.

The market was also less competitive with Android vs iOS. The market was smaller.

thealexweb said,

Android rolled in to the market with one phone on one of the smaller networks, Windows Phone 7 rolled out with multiple handsets, loads of networks and a huge huge advertising budget, bit of difference between the two launches there.

ya and wp7 is still on 7 devices and android is on 1000+.. lol who cares about launch day.. it was only important before things were upgradeable

Biglo said,
Just shows how bad windows phone 7 (windows mobile 7) is actually doing if their making 5X more profit from android than their on windows phone 7 itself.

What is Windows Mobile 7?

flexkeyboard said,
doubled...oh well....lol at google...must be p!ssed MS taking burgers from their lunch.

not from Google from HTC and this company.
big difference
and that also prove one thing Android scare MS like hell

NesTle said,

not from Google from HTC and this company.
big difference
and that also prove one thing Android scare MS like hell

Google will be ****ed. they agenda is to push Android as hard as possible and for that they made it free. Now, if HTC wants to use android, they have an added cost of 5 bucks which is going to **** off MS.

windbreaker11 said,
What's with the ****ing laptop? How is this related?

Would it not be one of the models of rugged computers that the company that licensed the patents produces?

windbreaker11 said,
What's with the ****ing laptop? How is this related?
It's Itronix Windows 7 laptop.
But they also make Android phones, so...

FMH said,
It's Itronix Windows 7 laptop.
But they also make Android phones, so...

they make android laptops as well i thought