We've long been amused by the fact that Microsoft is able to collect royalties from numerous vendors who use Android and, more recently, Chrome. Why this is so has to do with almost ancient Microsoft ownership of various operating system IP pieces that have nothing to do with today's Android as we know it but upon which Android itself, at its core, nevertheless sort of sits on and uses.
These vendors -- a growing list of contract manufacturers and OEMs that include Samsung, LG, HTC, Acer and Barnes & Noble -- have simply made the decision that it is better to pay a bit of licensing money to Microsoft up front than possibly to be caught at some later point in some IP infringing lawsuit that would cost considerably more either in legal fees or if Microsoft became less charitable in its demands, dragging the infringer into court to get its ounce (not pound) of Android flesh.
We're also amused for the simple reason that one day long ago (five years, more or less), when Windows Mobile 5 and 6 were still considered viable (and it's worth noting that even today there are -- if you can possibly believe it -- some old school ruggedized devices out there that still run Windows Mobile 6.5) Steve Ballmer looked some media people in the eye at a press conference and without laughing, said "Android is just words on paper…all Google has is a press release."
That was one of his early mobile mistakes, and yet here he is collecting royalties on what he claimed was a mere press release. What, you don't believe us when we say he said that? Here's the video:
VIDEO
So yesterday we were further amused that Microsoft has now added Hon Hai (the parent of Foxconn) to its collection of Android -- and in this case also Chrome -- licensees. The two signed a worldwide patent licensing agreement that, as Microsoft has done with the others it has in hand, provides broad coverage under Microsoft’s patent portfolio for devices running Android and Chrome. The deal will cover all such devices, including smartphones, tablets and TVs. The terms of the agreement are confidential but it is clear that Microsoft will collect royalties from Hon Hai under the agreement.
Horacio Gutierrez, corporate vice president and deputy general counsel of the Intellectual Property Group at Microsoft, is certainly happy about it and notes that, “We are pleased that the list of companies benefitting from Microsoft’s Android licensing program now includes the world’s largest contract manufacturer, Hon Hai. By licensing both brand name companies and their contract manufacturers we have successfully increased the overall effectiveness and global reach of the program.” And of course it has added some "loose mobile change" to Microsoft's otherwise still not very deep mobile pockets.
Hon Hai itself is certainly no slouch when it comes to intellectual property. Samuel Fu, director of the Intellectual Property Department at Hon Hai certainly makes this clear: "Hon Hai is the world’s largest contract electronics manufacturer that holds more than 54,000 patents worldwide. We recognize and respect the importance of international efforts that seek to protect intellectual property. The licensing agreement with Microsoft represents those efforts and our continued support of international trade agreements that facilitate implementation of effective patent protection.” Amen to that.
Since Microsoft launched its IP licensing program in December 2003 it has entered into more than 1,100 licensing agreements and continues to develop programs that open Microsoft’s IP portfolio for customers, partners and competitors. The program was developed to provide access to Microsoft’s own significant R&D investments and its growing, broad patent and IP portfolio.
That Android and Chrome have somehow managed to fall under this collection of IP remains amusing to us; after all, Android was just a press release…
Edited by
Rich Steeves
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