Patent spending
It's been reported before that Microsoft is possibly making more revenue from Android than from Windows Phone 7, and it if an agreement between Wistron and Microsoft is any indication, that trend could well continue.
The deal will see Microsoft collect royalties in return for allowing Wistron to use Microsoft patents in the process of manufacturing tablets, mobile phones ebook readers and other devices. Although the sums changing hands hasn't been disclosed, it's to be expected that a not insignificant stream of revenue will be heading Microsoft's way.
"We are pleased that Wistron is taking advantage of our industry-wide licensing program, established to help companies address Android's IP issues," said Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft.
Companies including General Dynamics Itronix, Velocity Micro, and Onkyo have formed similar agreements with Microsoft, licensing patents held in return for undisclosed royalties. It's a convenient situation for Microsoft, as it has its 'partners' coming and going - either use Microsoft software and platforms, and pay that way, or use Microsoft's rivals' products, and pay Microsoft for that privilege.
And as if it wasn't already raking in enough money from patent licenses to manufacturers using Android, Reuters reports than Microsoft is asking Samsung for as much as $15 a handset for its use of Microsoft's intellectual property - with Samsung expected to barter than down to $10 a unit, with the promise of close co-operation with Microsoft to make the reduced rate worthwhile.
Any such agreement would closely mimic that which Microsoft reached with HTC last year - although Samsung does not have HTC's advantage of being a major producer of Windows Phone handsets.
Some consolation might be had by the parties paying Microsoft for the use of its patents that at least Microsoft uses the intellectual property it licences - unlike so-called patent trolls, which sit on patents hoping for one of them to strike rich.
