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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"Microsoft spends billions in R&D, they are among the biggest spenders worldwide - all type of activities included.
If their patents and R&D work is valid they should be paid for it, it's just natural.
I've said it before, MS must be receiving $2 to $3 for each android being sold, way below some reports that go to the insanity value of over $10!!
While $2B sounds like a lot of money, $2 or $3 for each device don't seem to be braking the bank.

So you spend a lot of time on making the perfect burger for your restaurant. You patent it. I live on the other side of the planet and have never heard of your recipe or restaurant. I make a burger that I like for my restaurant and it is very similar to yours. Now I have to pay you 50 cent per burger I sell.

Am I understanding you correctly? If not, please tell me.

Doesn't matter that [you] live on the other side of the planet. [We] both sell burgers where [you] live and where *I* live. So, yes [you] would have to pay 50c per burger. Not [my] fault that [you] didn't perform due diligence of what patents were in place before selling that burger.

Of course, you could just not pay or not make that particular burger and sell a different one, and then finally patent it to protect yourself so that this doesn't happen again.

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