Linked by Thom Holwerda on Thu 7th Nov 2013 10:04 UTC, submitted by mbpark
Microsoft

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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PieterGen
Member since:
2012-01-13

Can someone please post a link to an article/ analysis that says how much money MS receives for 'Android patents'? I'd also linke to know what these patents are about.

I'm asking this because as far as I know Microsoft only gets money from companies that sell Android-stuff AND Microsoft-stuff or are in "cross licensing deals". Those companies pay one big invoice, and Microsoft says that it is for Android - for whatever reason, possibly to spread FUD in the market.

One of the few companies that only sold Android but no Windows, was Barnes & Nobles. When the received an "Android patents claim" from Microsoft they immediately started a lawsuit. Soon after the (very weak) patents were disclosed, Microsoft ended this embarassement by simply buying Barnes & Noble..... Problem solved.

The only "patent" that might have some value is the xFATx patent. Still doubtful, because there is prior art.

Anyways, could you guys name me ONE company that does not sell Microsoft stuff and is not in "cross licensing deals", but that pays Android patent money to Microsoft?


I'm doubtful because 1)if the patents were strong, why not disclose them? 2)they have never been tested in court 3)MS didn't contribute to Android 4) how likely is it that a company that 's been struggling for years with it's own mobile OS, would hold patents for a different (but highly successful) OS?

Suppose General Motors was struggling to develop a good electric engine & battery management - how likely would it be that they had essential patents in these fields, and forced Toyota, Nissan and Tesla to pay for it? Very unlikely, I'd say. Hey MS, if you're so good at mobile Operating Systems, how come your own OS sucks so hard?

Reply Score: 1

bentoo Member since:
2012-09-21

I'm doubtful because


You just don't like Microsoft?

1)if the patents were strong, why not disclose them?


Patents are public. Details of the license agreements, lawsuits, and settlements are not always.

2)they have never been tested in court


Sure they have.

http://www.geekwire.com/2012/microsoft-invests-300m-barnes-nobles-n...

3)MS didn't contribute to Android


Sure they did.

http://www.linuxfoundation.org/news-media/announcements/2012/04/lin...

4) how likely is it that a company that 's been struggling for years with it's own mobile OS, would hold patents for a different (but highly successful) OS?


Very likely when we're talking about software patents.

Reply Parent Score: 4

Delgarde Member since:
2008-08-19



Microsoft's contributions to Linux don't exactly count as contributing to Android... most of that work involves support for virtual machines and related server-oriented stuff... nothing of interest to Android or other mobile devices...

Reply Parent Score: 5

PieterGen Member since:
2012-01-13

I said "Microsoft's alleged Android patents have never been tested in court". You said "Sure they have" and included a link to an article about Barnes & Noble versus Microsoft SETTLING the dispute. Hey, I knew that all along, that's why I said that the claims have never been tested in court. Microsoft seems to avoids that (and why would that be? heh heh heh....)

Then you say that MS didn contribute to Android, and you link to an article about MS contributions to Linux, which are all about enabling Linux to run on Microsoft's hypervisor...... in other words, not a contribution to Android.

Reply Parent Score: 3