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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Typically software algorithms research is just looking at things differently, combining dissimilar concepts that hadn't been tried before, etc. Typically when discovered they tend to be forehead slappers because they are so obvious in context.

So yes there is some innovation there but in no way would I consider those to be "intellectual property". More like "trade secrets".

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