...and then the world
There's a superciliousness bordering on megalomania in Microsoft's pronouncements whenever it secures a new licensing deal with an Android OEM, which invariably calls for a special announcement.
In the context of Microsoft extracting a pound of flesh from the sale of Android devices, this announcement is a biggie. Samsung is the biggest Android OEM by quite a margin and Microsoft has just announced a licensing deal, which has presumably been under negotiation for some time, in which Samsung pays Microsoft unspecified royalties for every Android phone and tablet it sells.
In the same breath Microsoft said the two companies had agreed to cooperate in the development and marketing of Windows Phone, which was already a given. "Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we're investing to make that a reality," purred Andy Lees, Windows Phone boss. "Microsoft believes in a model where all our partners can grow and profit based on our platform."
That's one way of looking at it Andy. Another is that Microsoft is showing Android partners the error of thinking they could exclude mighty Microsoft from the mobile OS party, but is willing to show lenience to the penitent.
"Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry," acquiesced Dr. Won-Pyo Hong of Samsung. "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."
Microsoft already has similar deals with HTC and a few lesser Android partners, and is now possibly getting as much from the sale of Android devices as it does WP7 ones. Of course license revenues are only part of the mobile platform story, with the revenue from the sale of apps, advertising, and other services being the bigger picture. But as well as being a handy source of revenue, Microsoft's claims on Android serve to make its own platform more desirable in comparison.
It's also worth noting that the principal Android antagonist - Apple - has yet to sue Microsoft for some arbitrary transgression, such using the word ‘phone' for its platform. Maybe this is because it knows Microsoft's patent portfolio is too strong to mess with and, if that's the case, maybe licensees such as Samsung could use that to their advantage in the courts. Just a thought.
