Microsoft Moves To Gain Licensing Royalties From Android

The clever folks in Redmond (aided by their attorneys) appear to have found a way to gain “licensing revenue” from Android phones. That’s right. Android the OS is “free,” and that was seen, early on, as a competitive advantage vs. Windows Mobile, which had exacted a price of up to $15 dollars per unit from handset makers.

Yesterday, however, Microsoft announced it had reached a licensing agreement with longtime partner HTC regarding its patent portfolio and Android phones:

Microsoft Corp. and HTC Corp. have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for HTC’s mobile phones running the Android mobile platform. Under the terms of the agreement, Microsoft will receive royalties from HTC.

The agreement expands HTC’s long-standing business relationship with Microsoft.

I’m unfamiliar with the customary terms of these agreements and so I can’t project the revenues that might flow to Microsoft from HTC and potentially other Android OEMs that Microsoft’s attorneys will undoubtedly be calling (Motorola, Samsung, Dell, etc).

One semi-ironic question to consider is whether the total revenues that might come from IP licensing vis-a-vis Android could replace potential lost Windows Mobile sales to that very same OS.

Related Topics: Channel: Mobile | Google: Mobile | Legal: Patents | Microsoft: Business Issues


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn


Get all the top search stories emailed daily!  


Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.
  • Michael Martin PMP

    I agree – a smart & almost Goldman Sachs like move by Microsoft

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest


Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States


Australia & China

Learn more about: SMX | MarTech

Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!



Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide