InterDigital Inc (IDCC)

[IDCCfan]

I get a chuckle when I read what Microsoft makes from the Android mobile phone OEM’s? Yes Big Softie, likes to receive but they hate paying. And they are suing IDCC for anti-trust reasons. Go figure?

“Microsoft makes much more money from Android than Windows Phone. Every time you buy an Android smartphone or tablet, Microsoft is likely receiving $5 to $15. They likely make at least $2 billion per year from Android.

This financial agreement is all about patent royalties. Microsoft claims to hold software patents that Android infringes on, and they threaten lawsuits against Android device manufacturers until they settle.


How the Licensing Agreements Work

Microsoft has never officially revealed the details of their licensing agreements with Android device manufacturers. We’re piecing together all the information here from multiple sources.

We do know that Microsoft tells Android device manufacturers that Android infringes on their patents. To make things right, the device manufacturer needs to cut Microsoft in on the devices it sells. If the device manufacturer won’t enter into a patent licensing agreement, Microsoft will likely sue them.

While Microsoft hasn’t given us all the information we need on these licensing agreements, their corporate lawyers did release an interesting blog post about this subject back in 2011. They explain Microsoft’s philosophy when it comes to negotiating patent agreements with Android device manufacturers:

“Amidst continuing clamor about uncertainty and litigation relating to smartphone patents, we’re putting in place a series of agreements that are reasonable and fair to both sides. Our agreements ensure respect and reasonable compensation for Microsoft’s inventions and patent portfolio. Equally important, they enable licensees to make use of our patented innovations on a long-term and stable basis.” Etc…


https://www.howtogeek.com/183766/why-microsoft-makes-5-to-15-from-every-android-device-sold/