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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 vaelyan on 7/6/2011 7:49:27 PM , Rating: 1
I love it when the iApple fanbois get all upset about people copying stuff from the almighty apple when back in the 70s apple commited the exact same "crime" that all the fanbois are whining about. If Jobs and his boys hadn't taken a tour of Xerox's PARC they wouldn't have had the idea to start working on the Lisa and later the almighty Mac. They're all so quick to point out how similar Android is to iOS although they would probably never admit that Apple has done the exact same thing and that all tech companies do it. Of course the fanbois would have to stop whining long enough to read a bit of history first.

Apple has very few inventions to their credit(that they truely invented, not bought the company that did the inventing), most of what they do is improve upon existing technology. The mouse and GUI weren't originally their ideas, however they do deserve credit for bringing them to the masses. The first computer I ever used with a GUI was a Mac Classic. My favorite computer of all time was my Commodore 64.

Apple is extremely annoying with all their damn lawsuits, however they are mostly just posturing and ways of acquiring patent agreements. I absolutely HATE apple as a company, however I do like their products. The only apple product I own and use is my Apple TV. I admit I'm a PC and don't use OSX at all. Apple products look good and are well made. I don't like iOS anymore since I started using Andriod, I like the ability to customize Android and I like using widgets on my screen.


"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer














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