Microsoft has announced a partnership with Samsung to cross-license the patent protfolios of both companies. In other words, Samsung will pay Microsoft royalties for selling Android-based mobile phones and tablets. On top of that, Samsung will be working on developing and marketing Microsoft's Windows Phone platform.
"Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we're investing to make that a reality. Microsoft believes in a model where all our partners can grow and profit based on our platform," Microsoft's President of the Windows Phone Division stated in an official press release.
"Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry. 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," Samsung's Executive VP of global product strategy stated.
Lets dig into this a bit further. Samsung, the number two maker of smartphones, pretty much admitted that Microsoft is right for demanding royalties to those manufacturers who make Android-powered hardware. Even though Android is free, manufacturers such as Samsung are scared of potential patent violations.
Back in July, we learned that Microsoft was "demanding" $15 per smartphone. Samsung reportedly countered with $10 per phone in exchange for "a deeper alliance with Microsoft for the U.S. company's Windows platform."
Not that long ago, two high end Android device manufacturers had fallen victim to Microsoft's Android patent license royalty agreement. Both Acer and Viewsonic will pay Microsoft royalties for selling their Android-powered tablets and mobile phones.
Microsoft is still trying to court Motorola in doing the same, but so far, they have not fallen victim.