Microsoft and Samsung will now share patents for their products. This sharing came as the result of a cross-licensing patent agreement that was signed between the two companies — that means Samsung could be paying as much as 15$ patent fee for each Android smartphone handset it sells.
According to a press statement from Microsoft:
Microsoft announced today that it has signed a definitive agreement with Samsung Electronics Co. Ltd., to cross-license the patent portfolios of both companies, providing broad coverage for each company’s products. Under the terms of the agreement, Microsoft will receive royalties for Samsung’s mobile phones and tablets running the Android mobile platform. In addition, the companies agreed to cooperate in the development and marketing of Windows Phone.
According to the deal, Microsoft will get some part of the actual price on every smartphone (one whose manufacturer has signed an agreement with Microsoft) sold, as part of the licensing fees.
Microsoft already holds deals with other Android powered smartphone manufacturers such as HTC and Acer and some reports have suggested that Microsoft is now seeking to strike a same-kind-of-deal with Motorola.
However, Microsoft seems to have a soft spot for fellow rivals Apple as they have never tried to sign such deals with them. There could be many aspects of this restrain. One could be that Microsoft might be doing this intentionally because they are running an organized campaign against Android OS. Well it is just another one of the huge lists of possibilities.
Earlier this year, it was reported that Microsoft actually makes about 5 times the money from Android patent fees than it does from its very own Windows Phone 7.