Microsoft has been agreeing to patent deals with a number of device manufacturers over the last few months who make smartphones and tablets using Google’s Android OS. The last thing we heard was that Microsoft was looking to get Samsung to pay around $15 for every Android device they produce.
Now Microsoft has announced that it has signed some more deals, this time it is with Acer and also Viewsonic, and the deals are related to smartphones and tablets.
Microsoft Corp. and ViewSonic Corp. have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for ViewSonic’s tablets and mobile phones running the Android or Chrome Platform.
Microsoft Corp. and Acer Inc. have executed a patent license agreement that includes broad coverage under Microsoft’s patent portfolio for Acer’s tablets and smartphones running the Android platform.
Microsoft’s Strategy with Patent Deals
Microsoft’s strategy of securing patent deals with Android device manufacturers is a calculated move to monetize its intellectual property. By leveraging its extensive patent portfolio, Microsoft ensures that it receives a steady stream of revenue from the booming Android market. This approach is particularly significant given the competitive landscape of the mobile operating system market. While Microsoft’s own Windows Phone platform has struggled to gain significant market share, the company has found a lucrative opportunity in licensing its patents to Android manufacturers.
For instance, the deal with Samsung, where Microsoft sought $15 per device, highlights the substantial financial gains Microsoft stands to make. Samsung, being one of the largest Android device manufacturers, would contribute significantly to Microsoft’s revenue through these licensing fees. This strategy not only boosts Microsoft’s income but also reinforces its position as a key player in the tech industry, even if its own mobile OS isn’t leading the market.
Impact on Android Device Manufacturers
For Android device manufacturers like Acer and ViewSonic, these patent deals with Microsoft are a double-edged sword. On one hand, they gain access to Microsoft’s extensive patent portfolio, which can help them avoid potential legal disputes and ensure their devices are compliant with various technological standards. This can be particularly beneficial for companies looking to expand their market presence without the looming threat of patent litigation.
On the other hand, these deals come with financial implications. Licensing fees, such as the $15 per device fee proposed for Samsung, can add up quickly, especially for manufacturers producing millions of devices. These costs may be passed on to consumers, potentially affecting the pricing and competitiveness of Android devices in the market. However, for many manufacturers, the benefits of avoiding legal battles and gaining access to essential patents outweigh the costs.
Microsoft is probably making more money at the moment from its various IP licensing deals on Google’s Android OS than it is from its own Windows Phone 7 platform. This shift in revenue streams underscores the importance of intellectual property in the tech industry and highlights how companies can leverage their patents to generate income, even if their own products aren’t leading the market.
In conclusion, Microsoft’s patent deals with Android device manufacturers like Acer and ViewSonic represent a strategic move to capitalize on the success of the Android platform. By securing licensing agreements, Microsoft not only generates significant revenue but also reinforces its position as a key player in the tech industry. For Android manufacturers, these deals offer both benefits and challenges, balancing the need for patent protection with the financial implications of licensing fees.
Source WP Central
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