Microsoft reportedly originally wanted $15 per device, however, agreed to $10 with the promise of Samsung becoming more closely aligned with the Windows Phone OS. Microsoft already has a deal with HTC, and receives royalties each time an HTC-branded Android device hits the streets.
In a statement, Andy Lees, president, Windows Phone Division said “Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality…Microsoft believes in a model where all our partners can grow and profit based on our platform.”
“Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” said Dr. Won-Pyo Hong, executive vice president of global product strategy at Samsung’s mobile communication division. “We are pleased to build upon our long history of working together to open a new chapter of collaboration beginning with our Windows Phone “Mango” launch this fall.”
Samsung and HTC accounted for more than half of the Android handsets sold in the U.S. Last year, making Google-owned Motorola the largest Android handset maker who has not agreed to pay licensing fees to Microsoft. Microsoft has filed several patent suits related to Android, including one against Motorola.
It’s nice to see at least a few companies striking licensing deals rather than filing an endless sea of lawsuits to try and work out their patent issues. It also looks like Microsoft may be making more money off of Android now than it is off its own Windows Phone platform. When you think about Microsoft getting $10 for every Samsung Android device that’s sold, that’s a huge pile of cash for an operating system that isn’t really their own.