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The Almighty Buck Android Businesses Cellphones Google Handhelds Microsoft Operating Systems

Microsoft's Most Profitable Mobile Operating System: Android 309

puddingebola writes "Steven J. Vaughan-Nichols has a piece of commentary discussing Microsoft's profit from their patent claims on Android. From the article, 'To some, Windows 8 is a marketplace failure. But its flop has been nothing compared to Microsoft's problems in getting anyone to use its Windows Phone operating systems. You don't need to worry about Microsoft's bottom line though. Thanks to its Android patent agreements, Microsoft may be making as much as $8 per Android device. This could give Microsoft as much as $3.4 billion in 2013 from Android sales.'"
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Microsoft's Most Profitable Mobile Operating System: Android

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  • Linux (Score:4, Interesting)

    by Jacek Poplawski ( 223457 ) on Thursday May 09, 2013 @10:19AM (#43674497)

    So after all... Microsoft is making money on Linux.

  • The Solution (Score:5, Interesting)

    by TrueSpeed ( 576528 ) on Thursday May 09, 2013 @10:35AM (#43674657)

    All Google needs to do is offer a commercial licence, for a small fee, to all Android OEM's that indemnifies them. This way if Microsoft has an issue with Android or Linux they can take on Google directly. But, we all know that would never happen because Microsoft clearly knows that Google would single handily invalidate all of their obvious, worthless and prior art ridden patents one by one.

    • Comment removed (Score:4, Insightful)

      by account_deleted ( 4530225 ) on Thursday May 09, 2013 @10:46AM (#43674787)
      Comment removed based on user account deletion
      • Re:The Solution (Score:5, Insightful)

        by Jah-Wren Ryel ( 80510 ) on Thursday May 09, 2013 @10:58AM (#43674925)

        Microsoft isn't really being much of a problem here.

        You seem to be confusing form for content. Yes, MS is following the form of "FRAND" but what they are FRANDing is itself not reasonable. If MS had a legitimate set of patents, they wouldn't keep them a secret. FFS patents are public documents.

        • Re:The Solution (Score:2, Insightful)

          by Anonymous Coward on Thursday May 09, 2013 @11:45AM (#43675489)

          Samsung and HTC are massive multi-billion dollar companies. They can stand up for themselves and enter into business agreements as it suits them. They know exactly what's in these patents and why it is worth licensing them. They don't need a bunch of pathetic "open source advocates" (aka M$ haters) making up paranoid conspiracy theories.

          • Re:The Solution (Score:3, Insightful)

            by inode_buddha ( 576844 ) on Thursday May 09, 2013 @01:07PM (#43676629) Journal
            Wrong. (I can't believe I'm replying to an AC) Think about it: Barnes and Noble called them out on it *and won* since they have a good argument for the Doctrine of Laches (regarding the NDA's). Which estopped MS from collecting anything on the patents in question. Barnes and Noble were able to do this because they don't offer any other MS products. Samsung et al *do* offer other products with MS, and to call them out may have impacted their other licensing agreements in an unfavorable way. Hence they folded to the racket.
    • Re:The Solution (Score:3, Insightful)

      by howardd21 ( 1001567 ) on Thursday May 09, 2013 @10:55AM (#43674885) Homepage
      If Google could "single handily invalidate all of their obvious, worthless and prior art ridden patents one by one" and just charged $5 for the Android license every Mfg would save $3 per device. So why not just do it? It's money on the table for the whole ecosystem. Maybe they can't do it as easily as you think.
      • Re:The Solution (Score:5, Insightful)

        by Jah-Wren Ryel ( 80510 ) on Thursday May 09, 2013 @11:10AM (#43675045)

        So why not just do it? It's money on the table for the whole ecosystem.

        If one company stands up to MS and loses, MS will certainly charge them more for the licensing. But if they win, all the manufacturers will benefit equally as the patents will be invalidated for everyone. So the risk of failing in a challenge is not proportional to the benefit of wining the challenge.

        As it is now, each manufacturer can just pass the licensing fees through to the end customer and since all the major android manufacturers (presumably) have roughly the same licensing costs there is no competitive disadvantage to paying the microsoft tax.

  • It's Too Long Ago (Score:3, Insightful)

    by mk1004 ( 2488060 ) on Thursday May 09, 2013 @10:36AM (#43674669)
    From the Constitution: "...by securing for limited Times to Authors and Inventors the exclusive Right to their..." The patents are from the Jurassic age, in software years.
  • by Anonymous Coward on Thursday May 09, 2013 @10:38AM (#43674687)

    So if Windows Phone were shutdown.

    There would be no barrier to native Office for Android, or Office for Apple iOS devices. [Just like the old days, competing with Wordstar and Lotus or Borland]

    Even better they could shift the developers for Windows Phone over to developing Mobile versions of all their Apps and tools to Android and iOS versions.

    They should "own" the Mobile App market on Android and iOS, and stop loosing money on Windows Phone.

    The current mindset of tossing good money after bad.. is just plain stupidity and stubborness.. its a culture of "we can't be wrong".

  • by account_deleted ( 4530225 ) on Thursday May 09, 2013 @10:53AM (#43674869)
    Comment removed based on user account deletion
  • by fisted ( 2295862 ) on Thursday May 09, 2013 @10:58AM (#43674941)
    ..in my ivory tower built from free software and dumbphones.
    I don't share your pain.
  • I just don't get it? (Score:5, Interesting)

    by NormAtHome ( 99305 ) on Thursday May 09, 2013 @11:15AM (#43675123)

    Why are manufacturers paying this extortion rather than banding together and trying to fight it like any other patent troll?

    What is Google's position on this and why aren't they indemnifying manufacturers that use Android or fighting this themselves?

    • by kthreadd ( 1558445 ) on Thursday May 09, 2013 @11:44AM (#43675475)

      Because the legal system that we have created is designed to let companies like Microsoft do exactly what they are doing. This is completely normal.

      • by NormAtHome ( 99305 ) on Thursday May 09, 2013 @11:58AM (#43675679)

        I realize that this whole patent troll thing has been going on for a while but haven't a large number of high profile patent cases eventually gotten shot down as either prior art, unpatentable things or too vague and the claims have been dismissed?

        Are Microsoft's patents that strong where everyone feels they will loose in court?

        Is it really so much easier and cost efficient to pay extortion rather than all the company's co-operating and banding together in a lawsuit to challenge the validity of Microsoft's patent claims?

    • by tlhIngan ( 30335 ) <slashdot.worf@net> on Thursday May 09, 2013 @12:43PM (#43676341)

      Why are manufacturers paying this extortion rather than banding together and trying to fight it like any other patent troll?

      What is Google's position on this and why aren't they indemnifying manufacturers that use Android or fighting this themselves?

      Because the extortion is cheaper than fighting it out in court. $5/device isn't a lot of money - even if your device sold in SGS3 quantities (over 50M) that's $250M. A good patent lawsuit on the patents Microsoft asserts would run way bigger than that (I think Samsung spent at least that much on the Apple lawsuit).

      Thus, it's cheaper overall than to fight it. As for other manufacturers - well, considering Samsung would benefit the most as they own practically 80% of the Android market (while the SGS3 may be a bestseller in Samsung's lineup by selling 50M units, Samsung shipped tons more Android phones - so much that the SGS3 is barely 10-12% of the entire lineup - the rest are all the other Android phones Samsung sells - SGS2, the freebies, the crappies, etc). So the primary beneficiary would be Samsung, something which I think HTC, LG, etc., might be opposed to. Google as well, since I'm not so sure they like how Samsung is starting to dictate how Android should work (or the whole separate ecosystem Samsung is building with their app store).

      As for why Google isn't doing it? Well, what's in it for Google? They make no money off Android other than ads sold by showing them in apps. Heck, recent surveys have shown that iOS data traffic still beats Android traffic by 2 to 1, despite Android outselling iOS by 3 to 1 or more. Thus iOS uses are more likely to see ads and Google STILL makes more money from iOS that way. (And it seems advertisers value an iOS user more - they will pay more for an ad impression to an iOS user than Android, apparently 2 to 3 times as much money). Google only does Android to prevent themselves being shut out of a revenue stream (ads on mobiles).

    • by westlake ( 615356 ) on Thursday May 09, 2013 @01:36PM (#43677015)

      Why are manufacturers paying this extortion rather than banding together and trying to fight it like any other patent troll?

      It could never be that their lawyers and engineers are telling them the patents are significant and valid. It could never be that they routinely cross-license patents with Microsoft.

  • than actually making products that don't suck. Implication? Corporate leeches and legal parasites have changed the legal environment to favor their existence by purchasing laws via bribes labeled as "campaign contributions." Tell me again how, as an individual ISV or inventor, I could *ever* be successful in the USA's current legal environment?

  • by ThatsNotPudding ( 1045640 ) on Thursday May 09, 2013 @01:15PM (#43676751)
    Blackmail for instance.

    Brinksmanship would be another.

I have hardly ever known a mathematician who was capable of reasoning. -- Plato

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