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 Tractor on Thu 7th Nov 2013 11:31 UTC in reply to "Re:"
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[QUOTE] 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, [/QUOTE]

I would love this story to be true.

But unfortunately, those "other" Android players must take into consideration that they are "foreign asiatic" companies, being brought into a US-based jurisdiction against a US-based company.
They are not stupid, they know they will lose, for "valid reasons" which will be essentially "invented on the ground"; they won't get a fair fight, as Motorola would get against Microsoft.

And Microsoft knows that too.

Edited 2013-11-07 11:33 UTC

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