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Samsung to Pay Microsoft for Every Android Device Sold

By - Source: The Wall Street Journal | B 40 comments

Samsung and Microsoft attempt to ruin Android for everyone with patent sharing deal. Will this make all Google's base are belong to them?

Google's strategy of making Android available to developers for free has paid off extremely well. The operating system quickly mounted serious competition for Mac OS and Windows and emerged as the world's best-selling smartphone platform by the end of 2010. Naturally, that made Microsoft, still reeling from the end of Windows Mobile, and Apple, unhappy with anything less than Blofeld style world domination, feel somewhat uneasy. Both companies have long claimed that Android 'incorporates' significant aspects from their operating systems and have demanded that Google either pay them or change Android to remove the contested elements. The legality of those claims is still undecided and so far no litigation has resulted, but in a move that the Wall Street Journal notes may move that kind of activity forward, Samsung and Microsoft have reached a huge patent sharing deal.

Samsung will now pay royalties to Microsoft on its Android-based smartphones and tablets, and the two global supercompanies will collaborate to develop new phones and tablets based on Windows rather than Android. Window's stake in the deal is obvious, as it gives them official acknowledgment from the world's second largest smartphone maker that their claim against Android may have merit. It also provides leverage to pressure other cellphone makers to cut similar deals. But Samsung's reasons for pursuing the deal may have to do with more than simply protecting themselves from Microsoft's lawyers. The South Korean company is in the midst of a very bitter worldwide legal battle with Apple involving charges of patent and trademark infringement. Partnering with Apple's chief rival may provide them with an easy out, should they lose that battle and find their current slate of tabs and phones kiboshed.

As of this writing, Google has not made any official comment, but one imagines there are some very loud swear words being exchanged at the top of the company. In a month that has seen them taken to task for alleged anti-trust violations, this is one more headache they don't need.

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Top Comments
  • 13 Hide
    rohitbaran , September 29, 2011 5:18 PM
    Extortion. That sums it up.
  • 11 Hide
    Murissokah , September 29, 2011 5:30 PM
    Did I get it wrong or is Samsung abandoning android and adopting windows for their future devices? If that's really true, it's much bigger news than paying royalties. And very bad news indeed, at least for those who admired samsung android devices.
Other Comments
  • -6 Hide
    back_by_demand , September 29, 2011 5:09 PM
    Have you ever witnessed one of those moments in history, like Ali doing the rope-a-dope?
    ...
    That just happened
    ...
    MS Ali has been on the ropes bobbing back and to while Google Foreman thumps hell out of it, now it seems with this deal Foreman has run out of steam and Ali is going for the knockout
  • 2 Hide
    nebun , September 29, 2011 5:11 PM
    about time...it's time to see some quality phones with a quality OS...i really don't like microsoft, but the desktop version on win7 is one stable OS
  • 8 Hide
    guru_urug , September 29, 2011 5:16 PM
    Oh come on Samsung...grow a pair!!
  • 0 Hide
    sunflier , September 29, 2011 5:16 PM
    Quote:
    ...demanded that Google either pay them or change Android to remove the contested elements.

    I don't know what those 'elements' are but I suppose changing them would put Android way behind??
  • 13 Hide
    rohitbaran , September 29, 2011 5:18 PM
    Extortion. That sums it up.
  • 5 Hide
    Darkerson , September 29, 2011 5:20 PM
    I really wish Microsoft would get their asses handed to them in regards to this royalty crap, when all they have done is *claimed* infringement, and not proven it. Utter bullshit. And dont get me wrong, I like Windows 7 and some of their other stuff, I just hate their business tactics, which amount to bullying other companies around, much like Apple. :/ 
  • 11 Hide
    Murissokah , September 29, 2011 5:30 PM
    Did I get it wrong or is Samsung abandoning android and adopting windows for their future devices? If that's really true, it's much bigger news than paying royalties. And very bad news indeed, at least for those who admired samsung android devices.
  • 0 Hide
    mdillenbeck , September 29, 2011 5:32 PM
    Perhaps Samsung is realizing it is more lucrative to cater to a supported closed system like iOS or Windows Phone 7 rather than an open and easily side-loaded system like Android.

    I also agree we are seeing a moment in history, but it is a larger part of an ongoing battle to gain ownership of ideas and advancements as "value added" products. It is the notion that we are serfs, we don't own what we own but merely "lease" it from out kind landlords - but unlike feudalism, these landlords don't have any obligation towards us peasantry.
  • 2 Hide
    southernshark , September 29, 2011 5:37 PM
    Great day for MS for sure.
  • -1 Hide
    COLGeek , September 29, 2011 5:51 PM
    Making a deal with the devil (MS) often has unintended consequences. Interpret that however you like.
  • 1 Hide
    rhangman , September 29, 2011 5:51 PM
    MurissokahDid I get it wrong or is Samsung abandoning android and adopting windows for their future devices?

    Nah, Samsung will continue to make Android, Bada and WP7 devices. No way they would abandon the other OS' since in terms of phone sales it goes Android (by far), Bada and then WP7 (way down at the bottom).

    Samsung also sell Windows laptops and maybe desktops in some markets, so they are definitely somewhat tied to MS.

    I guess expect to see Tizen devices from Samsung in the future as well as Windows 8 tablets.
  • -5 Hide
    epdm2be , September 29, 2011 6:01 PM
    Murissokah And very bad news indeed, at least for those who admired samsung android devices.


    Why would 'admire' Samsung devices at all. They make cheap plastic chinese build subpar quality devices with one (or perhaps 2) outstanding features (usually the screen). Without much support or longevity for these devices at all. They lack any vision or forward thinking and just dumb their shit on the world. They don't care what device you buy or what OS it runs as long as THEY sell it. I loathe Samsung and am glad they finally get their ass kicked!

    As for M$ and Android. It's clear that Google's "linux variant" is quick rehash using more than free/GPL-code. Propably in their own effort to cash in on it. So much for "open source". Appareantly it's so open that M$ has enough cause to retrieve fees.

    A reason enough to steer away from it. If this continues then I hope at least RIM has the guts to stay alive and defend their own OS because that's gonna be the only alternative left.
  • -2 Hide
    epdm2be , September 29, 2011 6:15 PM
    MDillenbeckPerhaps Samsung is realizing it is more lucrative to cater to a supported closed system like iOS or Windows Phone 7 rather than an open and easily side-loaded system like Android....


    eh?! Why would it matter. They pay Microsoft anyway regardless whether Samsung use Android or Windows Phone 7 on their devices. So what's the big deal? It's obvious that both Apple (indirectly) and Microsoft (directly) want Android (and probably Google with it) of this planet.

    Secondly I don't get. Ppl have been complaining about Microsoft for ages. Windows Mobile sucked big time and now suddenly it's all kiss and make up. WTF! Are you folks braindead or what? Microsoft are bad guys remember! THEY enforced the world into DOS/Windows while other much better alternative OS's and computersystems have been totally wiped out.
    Ask any RISC OS user, any Psion Series 5 owner, or even any Amiga/Atari owner which system they prefered. Particularly the demise of RISC OS system is a real SHAME for the European IT world. It was amazingly fast, very simple userfriendly and yet amazingly simple of structure. Unlike ANYTYHING else on the world. They invented low power high performance RISC-based desktop computing and it was British! Yet no one praised it. Now whenever there's a new fucking iPhone all the lemmings stand inline for hours with their glazed eyes waiting to get their paws on yet another hyped up geeky toy. It's disgusting!
  • 2 Hide
    nitrium , September 29, 2011 6:50 PM
    Quote:
    The operating system quickly mounted serious competition for Mac OS and Windows and emerged as the world's best-selling smartphone platform by the end of 2010

    Shouldn't "Mac OS" be "iOS", and shouldn't "Windows" be "Android"???
  • 1 Hide
    nitrium , September 29, 2011 6:54 PM
    Sorry "Windows" should really be "Windows Mobile" or something to make it clear that Android is serious competition for smartphones.
  • 4 Hide
    djridonkulus , September 29, 2011 7:20 PM
    Kudos to author for the '80s "all your base are belong to us" reference. Nerd humour rules!
  • 2 Hide
    killerclick , September 29, 2011 7:21 PM
    MDillenbeckPerhaps Samsung is realizing it is more lucrative to cater to a supported closed system like iOS or Windows Phone 7 rather than an open and easily side-loaded system like Android.


    Samsung is very happy with how its Android phones are selling. They're just hedging their bets (and why shouldn't they?), so no matter what happens with Android or Windows, they'll still have a strong product portfolio left.

    And for like 95% of users out there, Android is as "closed" as any other OS.

    In any case, if HTML5 does what it's supposed to do, the line between sites and apps will blur and it won't really matter that much which OS you're using.
  • 0 Hide
    SneakySnake , September 29, 2011 7:33 PM
    Android quickly proved a lot of competition for Mac OS and Windows ? what?

    you either meant Chrome their instead of android (which isn't providing any competition), or you meant it's competing the iOS and Windows Phone (which wasn't even released when android was, so I think you meant RIM)

    naming fail..
  • 1 Hide
    becherovka , September 29, 2011 7:36 PM
    I wont buy samsung again.. Not because of this but my experience with there products was poor. They are very buggy! I changed to LG and love it, it isnt running the latest version of android but at least everything works as it should! I think there are too many companys producing android products and some have to go for the sake of the others. If samsung go its not that much of a loss. HTC Motorola and LG FTW!
  • -1 Hide
    captaincharisma , September 29, 2011 7:37 PM
    i guess Google may just have to find someone else to make there nexus phones now
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