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[3]: Comment by Nelson
by Valhalla on Fri 8th Nov 2013 02:27 UTC in reply to "RE[2]: Comment by Nelson"
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They are monetizing a competitors product and using it to finance their own product. That's strategic genius.

That you consider the act of patent extortion to be 'genious' says a lot about you, it's a simple form of a shakedown which has been around for ages.

In reality it's nothing genious it at all, it's just a matter of being willing to stoop so low as to use the insanity that is todays software patents to try and attack your competition.

Of course Microsoft is on the forefront of such behaviour, as it's seemingly part of their DNA.

And while Google can put up a defence, that is not something the vast majority of tech companies can, which means that the huge tech companies who amassed these ludicrous 'patents' (and obviously had a huge hand in having software patents made legal to begin with) are now using it to try and destroy competitors that they would otherwise have to compete with in an open market.

Even going so far as to purchasing a bunch of third-party patents all in an effort to attack a competitor with which they can't compete by the value of their own products, -'if we can't create products consumers want, we must instead try to remove the other products!'.

The end result is a very bleak world for developers and entrepreneurs, but even more so for consumers, as when there is no competition to speak of, you are effectively locked to a platform because there are no viable alternatives, with technology stagnation and high prices as the result.

This is what software patents ultimately brings us, a future where the entire software market is controlled by few large tech entities who owns and continously file new broad patents to encompass any possible functionality with which they can easily crush any smaller company through threat of long costly legal battles.

And even if a small company would end up winning, 'there's always another broad software patent to litigate with'.

Again as a developer I can't understand how people who claim they are developers can stand behind this behaviour.

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