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Gunzkewl

Samsung paid Microsoft $1 billion in Android patent-licensing royalties in 2013

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Posted · Original PosterOP

 

So we knew Microsoft's Android-patent-licensing business was big. But it's even bigger than many had estimated.

 
Thanks to a filing unsealed on October 3 in the Microsoft vs. Samsung U.S. District Court patent-royalty case filed in early August 2014, we now know that Samsung paid Microsoft $1 billion in 2013 for a single year's worth of patent-licensing royalties.
 
Samsung agreed in 2011 to pay Microsoft a then-undisclosed amount for licensing patents upon which Android allegedly infringed. That agreement was structured as a cross-licensing agreement.
 
According to the unsealed filing, Microsoft is contending that "(U)nder the License Agreement, Samsung agreed to make patent royalty payment to Microsoft for a period of seven fiscal years, in exchange for the right to use patented Microsoft technology in Samsung smartphones and tablets that use the Android operating system."
 
The filing says that Samsung failed to make its year-two royalty payment on time and to pay interest for not doing so. Samsung, for its part, claimed it shouldn't have to make good on the contract because Microsoft bought Nokia's devices and services business.

Microsoft said Samsung owed interest in excess of $6.9 million for its late Android-patent fee, which it still hadn't paid as of the date of the filing. That amount is calculated on the $1 billion that Samsung owed Microsoft in Android patent licensing royalties as of August 29, 2013, according to the unsealed documents.
 
Microsoft announced publicly its plans to acquire Nokia's devices and services business on September 3, 2013. Samsung is claiming that the Nokia acquisition would breach the patent license agreement. But, according to the unsealed court documents, Samsung did pay Microsoft its agreed-upon $1 billion patent royalty amount on November 29, 2013.

Link: http://www.zdnet.com/samsung-paid-microsoft-1-billion-in-android-patent-licensing-royalties-in-2013-7000034342/

Microsoft its making more from Android than Windows Phone OS...

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Yup, it's also one of their main revenue streams. They also make a very healthy sum from Google.

I thought this was common knowledge, but it wouldn't really surprise me if it's not.

 

It's estimated they could be making upwards of 9 billion a year from Android by 2017.


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Posted · Original PosterOP

Yup, it's also one of their main revenue streams. They also make a very healthy sum from Google.

I thought this was common knowledge, but it wouldn't really surprise me if it's not.

 

It's estimated they could be making upwards of 9 billion a year from Android by 2017.

When will this patent license expire?

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When will this patent license expire?

I don't believe it does.


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When will this patent license expire?

 

It won't. 

 

Google shielded itself from a lot of this, but even they have to pay some royalties. Its the OEMs that really got boned with the patents, and MS knows they have them by the balls forever. 

Sure, patents can be bad, and stocking up a war chest full of them can be counter productive to competition, but it doesn't stop it from being hilarious when one companies war chest collectively craps on several others at once AND earns a lot of money for it. 

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Posted · Original PosterOP

It won't. 

 

Google shielded itself from a lot of this, but even they have to pay some royalties. Its the OEMs that really got boned with the patents, and MS knows they have them by the balls forever. 

Sure, patents can be bad, and stocking up a war chest full of them can be counter productive to competition, but it doesn't stop it from being hilarious when one companies war chest collectively craps on several others at once AND earns a lot of money for it. 

I know but patents should expire and be free after XX amount of years.. Some patents are like essential for somethings to work..

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I know but patents should expire and be free after XX amount of years.. Some patents are like essential for somethings to work..

 

I agree, but thats the nature of the beast right now. 

 

Some patents will go kaput (like drug patents), some patents can be invalidated by the courts, but patents remain that required evil at times. 

 

I think every company realizes they are fairly broken, but no one wants to give up what they have. 

 

Especially the companies who are making bank off the system. 

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