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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No, usually it is like this:
- a company creates something and runs into a problem, it finds a simple and beautiful solution,
- then another company comes and say: you know, we had a similar problem, found a similar solution, made it general, wrote a patent, and wait to get money for this.

"then another company comes" .. "we had" : you are mixing present and past tense which is quite clever but also (willingly?) confusing.

The patent holder must first find the simple and beautiful solution and patent it, otherwise the parent is invalid due to prior art.

That being said, I still don't understand the fundamental difference between hardware and software patents which would makes hardware patents acceptable and not software patents. Can anybody quickly explain me?

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