Linked by Thom Holwerda on Wed 6th Jul 2011 14:00 UTC
Microsoft Well, paint me red and call me a girl scout, I totally did not see this one coming at all. This is so utterly surprising it made my brain explode. Hold on to your panties, because this will rock your world. After pressuring several smaller Android vendors into submission (and yes, HTC is still relatively small compared to other players), Microsoft is now moving on to the big one: Redmond is demanding $15 for every Samsung Android device sold. Samsung's choices are simple: pay up, or face another epic lawsuit.
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Extortion
by saidge@yahoo.com on Wed 6th Jul 2011 20:38 UTC
saidge@yahoo.com
Member since:
2007-11-06

Could someone please explain when extortion became legal for companies? Surely demanding money under the threat of legal action is criminal extortion. It's not as if a any legal entity has ruled that Android does in fact infringe on Microsoft's patents, nor have many of Microsoft's patents had their validity properly scrutinized in a court of law.

Not that this is necessary under the current legal system, but from a moral and ethics perspective it is most certainly extortion.

I'm surprised no fortune 100 company has tried to patent the wheel in some obscure and complicated language with equally obscure diagrams depicting design, use, and functionality... and then threaten small-time roller skate manufacturers that don't have the financial means to defend themselves with legal action if they don't pay up.

Seriously. What happened to america?

Reply Score: 2

RE: Extortion
by MollyC on Fri 8th Jul 2011 18:48 in reply to "Extortion"
MollyC Member since:
2006-07-04

If "Surely demanding money under the threat of legal action is criminal extortion", then nearly all civil suits would be "criminal extortion".

Most patent disputes are settled out of court (you would call those settlements "extortion", I presume). The problem here is that Google respects no patents, violates them willy-nilly, and laughs because since they don't actually sell the software, they can't be sued. So their hardware partners bear the burden of licensing any and all patents that Google gleefully violates.

Google could enter into licensing deals with the patent holders but that's not their business model; so the patent holders have no choice but to go to Google's hardware partners to get the compensation that SHOULD be coming from Google. The other big companies (Microsoft, Apple, Samsung, Sony, etc) all license patents from other companies. Google does not. It's Google that is creating this particular situation.

Reply Parent Score: 2

RE[2]: Extortion
by Johann Chua on Sat 9th Jul 2011 10:19 in reply to "RE: Extortion"
Johann Chua Member since:
2005-07-22

Wow. So you know for a fact that patents have been violated. Care to show your work?

Reply Parent Score: 2