LG is the latest in a string of Android phone manufacturers to strike a patent deal with Microsoft over portions of the Chrome and Android OS. With this agreement in place, Microsoft now profits from 70 percent of all Google-based smartphones sold in the United States. Other manufacturers paying Microsoft for their Android phone sales include HTC, Samsung and Acer. One might inquire as to the specifics of these patents, but Microsoft requires the accused to file a non-disclosure agreement with them before they’ll reveal those details. Barnes & Noble is one of the few to reject Microsoft’s patent claims, saying “Instead of focusing on innovation and the development of new products for consumers, Microsoft has decided to invest its efforts into driving open source developers from the mobile operation systems market. Through the use of offensive licensing agreements and the demand for unreasonable licensing fees, Microsoft is hindering creativity in the mobile operation systems market.”
Not a bad profit-maker for a company whose own mobile phone operating system has a market-share of less than two percent, by Gartner Group estimates. The fact is, with most of these companies (Barnes & Noble being an exception), they stand to benefit in the long-haul from keeping up good relations with Microsoft. Manufacturers like Samsung or LG build an awful lot of electronic devices, and there’s a good chance they’ll cross paths with Microsoft again with some of them. Regardless of the validity of the patents themselves, these businesses are caving in to Microsoft’s demands to avoid lengthy court battles and in a gamble to earn Microsoft’s favor for future projects.
As RIM Blackberry fades from popularity, this really begins framing things as a rehash of “Mac vs. PC”. Either you buy an iOS device and Apple profits or you buy Android or Windows Phone and Microsoft profits. Either way, some large company profits off of your choice. They thank you.
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