Friday, September 30, 2011

The Android Tax And The Microsoft Rip-off; MSFT Loves Android

While consumers embraced Android devices, the OS provided for free by Google, did you know that from pretty much every Android device sold a bew bucks go to Microsoft?

Whle the many companies that get Android software free from Google Inc., more and more of them are forking over millions to Microsoft Corp. as an 'Android tax.'

Microsoft has just signed a deal with Google's largest manufacturing partner, Samsung Electronics Corp, this after signing patent licensing agreements with seven other large Android makers in the past three months,  including Acer Inc. and HTC Corp.

Brad Smith, Microsoft general counsel: "our most important Android patent licence to date," said on Twitter.

Twitter does not pay royalties to Microsoft, yet
RBC Capital Markets estimates the royalties to be between US$5 and US$15 per device sold.

If only half of the 19 million smartphones Samsung sold during its most recent quarter were running Android, Microsoft would have made between US$50-million and US$150million..

Not bad for MSFT. Very bad for eevryone else.

Motorola Mobility Holdings Inc. is the only U.S.-based Android maker without a Microsoft licence. Microsoft just won a motion last month to have an ongoing patent lawsuit moved to its home turf in Seattle

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