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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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Why does everyone give a sh!te?
By petrosy on 7/6/2011 7:40:21 PM , Rating: 2
... I wish there was more "copying" of ideas. The more competition the better the end result for me.

Andriod is not gaining ground because of copying iOS, they gaining ground because of a better all round product / eco-system.

Google has not really played the suing game... they have just up their game. Maybe crApple should try innovate again as that is what got them where they are... suing will not keep them there.

So why while you all stick to your camps... I say why bother do you really want to live in such a sterile tech world?

The only reason I can see peole feverishly defending one or the other is because no one wants to admit they bought into the wrong side which ever side that may be. So stop being drones and let the tech companies wow us with the best hardware, software, service and what ever else they can to get my hard earned dollars!




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