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Samsung may pay as much as $10 per Android handset sold to Microsoft, in order to protect itself against Apple.  (Source: Cell Phone Blog)
Licensing fee could give Samsung extra legal ammo against Apple

Microsoft (MSFT) and South Korea's Samsung Electronics (SEO:005930) are reportedly engrossed in intense intellectual property licensing negotiations.  The talks bring to mind the old adage "the enemy of my enemy is my friend."

While Microsoft's Windows Phone 7 platform competes with Android, both platforms share a common enemy -- Apple, Inc. (AAPL).  As Apple tries to fend off Android, it has turned to multiple lawsuits, first suing [1][2] Taiwan's HTC Corp. (TPE:2498) (the top Android phone maker at the time) and then suing Samsung (currently the top Android phone maker).

As both Samsung and HTC are also WP7 handset makers, it behooves Microsoft on multiple levels to defend these quasi-rivals.  To that end, Microsoft entered into a patent licensing agreement with HTC last year.  HTC agreed to give Microsoft a fee for every Android handset sold.  In exchange it received the use of Microsoft's IP, which has proved a useful shield to hold back Apple's legal harassment.

Samsung, which has a sizable IP catalog of its own, may opt for a similar deal.  The current sticking point is the licensing fee.  Microsoft wants $15 USD per Android handset sold.  Samsung, reportedly, is willing to agree to around $10 USD per handset.

If the pair can reach an agreement, Samsung could use its new resources to further defend itself against Apple in court.  That would be good news for U.S. customers, who could lose access to Samsung's Android lineup if Apple succeeds in blocking imports from the Asian gadget maker.

Samsung will soon become the world's largest phone maker, passing Microsoft's Finnish ally, Nokia Oyj. (HEL:NOK1V).  The company is expected by analysts to have sold 3 million units of the Galaxy S II since its late April debut, helping propel the company to total estimated sales of 19 million units in calendar Q2 2011.

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RE: Who's suing whom?
By Smilin on 7/6/2011 1:14:26 PM , Rating: 4
Exactly, Google has admitted this before. Microsoft too. They're both copying iOS.

It wouldn't surprise me if Apple eventually sues Google and Microsoft for making knockoff operating systems.

iOS is *nix based, steals the interface from Windows 3.1, and the multitouch from the Prada. You realize the entire computing industry copies each other right?

Obviously that would be a big case, so it's probably just taking some time to prepare.

A comedian who hasn't stolen from Richard Prior at some point probably isn't funny.
A mobile phone maker who hasn't licensed or stolen from Motorolla and Nokia probably can't connect to any networks.

Microsoft has been making operating systems for almost 35 years and has filed a bajillion patents (IBM was the only that had more I believe). The reason Apple hasn't sued them is because they would get their butt handed to them in court.

"taking some time to prepare". Oh man that was a good one. I didn't do a true LOL but there was indeed an audible chuckle.

RE: Who's suing whom?
By Tony Swash on 7/6/11, Rating: -1
RE: Who's suing whom?
By Smilin on 7/12/2011 3:05:19 PM , Rating: 1
Tell me about it. Heck it pulls down my average just doing a reply to you.

Tony Swash has posted a total of 969 comments at DailyTech, the average comment rating was 0.63.

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