Linked by Thom Holwerda on Thu 7th Nov 2013 10:04 UTC, submitted by mbpark

Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company.

He estimates that the Android revenue has a 95% margin, so it's pretty much all profit.

This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash.

Microsoft has not written a single line of Android code, yet rakes in the profits through scummy software patents. Crime does pay.

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RE: Re:
by dragos.pop on Thu 7th Nov 2013 11:30 UTC in reply to "Re:"
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They know how to pocket the 30% cut from the Play Store, but when an OEM gets patent-trolled, they are all like "we just offer source code, you are on your own".[\q]

Not the same, Play Store is an optional service and the money they make on it don't seem to cover android development cost.

[q] Anyway, this probably won't continue for ever. Motorola hasn't paid MS a dime in extortion fees, and probably won't, so, once the other OEMs realize that making an Android rom free of MS patents is possible (just do what Moto did), they will stop paying the extortion fee, just like companies stopped paying the linux extortion fee to SCO (but if Google had stepped up to protect Android like IBM did with Linux, the Android extortion fee would have already been history, damn!)

They tried to somehow. I am not saying that they cannot do more, but they did try to form a patent pool to help against trolls. This is why they bought Motorola. They should be more aggressive on this.

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