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Microsoft Adds ViewSonic, Acer to Android Licensees

- By - Source : Cnet

Android continues to be a gold mine for Microsoft. ViewSonic and Acer are the latest two companies to have signed patent licensing agreements with Microsoft.

It is unclear how much money Microsoft will receive from the deal, but previous agreements, which include HTC, are said to be handing Microsoft somewhere between $7.50 to $12.50 per Android device sold, according to Citi analyst Walter Pritchard. HTC alone may be paying Microsoft about $100 million every quarter, based on shipments of currently about 11 million phones per quarter.

“We are pleased that ViewSonic is taking advantage of our industrywide 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. “This agreement is an example of how industry leaders can reach commercially reasonable arrangements that address intellectual property.” Of course, the licensing agreement takes ViewSonic and Acer out of the legal crosshairs at Microsoft.

According to data just released by Lex Machina, 8 percent (or 24 out of 294) of patent infringement lawsuits filed in August targeted mobile products. Apple is involved in 97 of all open patent cases. It seems that the patent mess is just getting started as all major mobile platform companies have been building their defenses. For example, Google acquired Motorola for $12.5 billion, mainly for its huge patent portfolio.

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rohitbaran 09/12/2011 10:37 PM
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Wow. Talk about free cash!

FlayerSlayer 09/12/2011 10:37 PM
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I think I missed an article recently. How come Microsoft gets a $10 cut of the sale of all Android devices? Is this due to patent suit settlements. I wish the article were clearer on why, so I could know this isn't just another Tom's typo.

DSpider 09/12/2011 10:43 PM
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of the way 09/12/2011 10:47 PM
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Microsoft thinks it can sue over Android use. This is their way of not having to pay (as many) legal fees, and jump straight to a settlement.

jprahman 09/12/2011 10:55 PM
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Basically Acer and Viewsonic pay Microsoft a fee for a license to use mobile technology that Microsoft has patented but is (supposedly) present in Android. This way Acer and Viewsonic don't face lawsuits and Microsoft gets to cash in on Android phone sales.

bobbyp86 09/12/2011 10:58 PM
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I hate all of this legal extortion, I'd boycott the companies that do it but then I'd be living in a cave :/

coldmast 09/12/2011 11:03 PM
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Software should be limited to copyright, not patents, what a joke.

DSpider 09/12/2011 11:07 PM
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That is so messed up. Microsoft making a profit from Android sales (which is basically Linux).

silver565 09/12/2011 11:21 PM
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meh, Nokia have a lot of patents that other companies have to pay to use....
Same thing I guess

junixophobia 09/12/2011 11:25 PM
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what patent exactly is that....?

zorky9 09/12/2011 11:29 PM
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(legal) extortion

silver565 09/12/2011 11:42 PM
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junixophobia :
what patent exactly is that....?



Nokia invented a lot of the things we all use today. Here are some older ones that you may have forgotten about

http://eupat.ffii.org/gasnu/nokia/index.en.html

bourgeoisdude 09/12/2011 11:56 PM
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Didn't know it was that much money. To everyone asking, the only thing I am aware of that must be licenses for every Android device (and iPhone) is Activesync:

http://en.wikipedia.org/wiki/Activesync

back_by_demand 09/13/2011 12:01 PM
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FlayerSlayer :
I think I missed an article recently. How come Microsoft gets a $10 cut of the sale of all Android devices? Is this due to patent suit settlements. I wish the article were clearer on why, so I could know this isn't just another Tom's typo.


This article assumes you read posts from a while ago and/or know something about Android other than it has a cute name based on sweet food.

Android was made by Google, but some of its code is patent property of Microsoft, so instead of suing Google there is more money to be made by licensing. The hardware vendors have already agreed to pay, over 600 of them in fact.

HTC signed a license deal at the same time Apple just went directly to the lawyers, Apple has got nowhere, Microsoft is getting $400 million a year, Apple is pretty good with the whole litigation racket so you have to assume that this is nothing more than very good business.

When MS releases W8 for tablets you will have people in Frys stuck with a choice, buy an Android or a Windows tablet, whichever you buy MS will get cash.

otacon72 09/13/2011 12:18 PM
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Microsoft cashing in on Android...just brilliant. I can just see the Google execs heads exploding.

otacon72 09/13/2011 12:20 PM
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jprahman :
Basically Acer and Viewsonic pay Microsoft a fee for a license to use mobile technology that Microsoft has patented but is (supposedly) present in Android. This way Acer and Viewsonic don't face lawsuits and Microsoft gets to cash in on Android phone sales.



Supposedly? Do you really companies are going to hand over $100M just for the hell of it?...unreal.

back_by_demand 09/13/2011 12:29 PM
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otacon72 :
Microsoft cashing in on Android...just brilliant. I can just see the Google execs heads exploding.


I would actually pay to see that, not that I dislike Google specifically, but Eric Schmidt is a slimy twat and I personally would love to push the detonator.

slabbo 09/13/2011 12:35 PM
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yup, it's truly disgusting. Microsoft has the "alleged" patents but zero code. They did the least amount of work and are raking in millions. But in the end it's the consumers who pay. the phones makers just charge $7-11 more per device. Google doesn't charge a penny for Android too, so they don't even get paid when someone uses it. nice world we live in /sarcasm.

festerovic 09/13/2011 12:55 PM
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Vote with your dollars and don't buy products from companies that are part of the problem.

Anonymous 09/13/2011 1:09 AM
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Companies like Acer and VIewsonic does not handover the cash. They mark up the price of the device and it is the consumers who end up paying Microsoft. Microsoft has talked about "Android is not free" some time back and now we know how it is benefiting from Android. What is more sad about this is when companies start doing this, we shall see "Chrome is not free", "Firefox is not free" and whatever greedy companies and their lawyer cronies can think of in order to cash in on old dodgy inventions that were created more than 10 years ago (USA laws hold software patent for 20 years). Effectively things like this only benefit big corporations as they have plenty of money to employ lawyers to go through other people products. Small companies or open software developers might have similar claims but due to lack of resource they are unable to discover them.

Maybe software patent should be reformed, like making it shorter, such as 5 years. Or make it such that ALL documentations on software MUST clearly list which part of it is under patent and since when so that developers will not fall into such traps. Failure to do so should result in the patent being void or something.

back_by_demand 09/13/2011 1:09 AM
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Anonymous 09/13/2011 1:39 AM
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gone_by_demand: Oh yes, the awesome R&D that went into:

Patent #12343455666:

The use of XML to transmit data between 2 computers.

(and other similarly frivolous and non-patent-worthy M$ patents)


So basically, you're saying that MS should be legally entitled to a monopoly, because it's impossible to write an operating system without infringing on their intellectual property?

Welcome to the world of blind ignorance, fanboy...

PhilFrisbie 09/13/2011 1:56 AM
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The problem is software is math and should NEVER have been allowed to be patented.

Anonymous 09/13/2011 2:11 AM
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Can anybody tell me ANYTHING Microsoft actually invented? Having dominant marketshare is not, in and of itself, patent-worthy. Sure, they have the copyright to basically every technology used in Windows(C#, ASP.NET, NTFS, etc...), but they have roughly zero actual inventions, they've never been the first to do anything. If you take the time to read their patents, it's laughably obvious stuff that only a corrupt Texas judge would consider patent worthy.

Shin-san 09/13/2011 2:31 AM
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Another piece of software that gets licensed out: FAT/FAT32

malmental 09/13/2011 3:18 AM
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big business.
a dog eat dog world.
it's like big bank takes little bank..

Anonymous 09/13/2011 3:32 AM
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Shin-san: Maybe you should check out the wiki page for FAT, here's a snippet of it:


U.S. Patent 5,745,902 - Method and system for accessing a file using file names having different file name formats. Filed July 6, 1992. This covered a means of generating and associating a short, 8.3 filename with long one (for example, "Microsoft.txt" with "MICROS~1.TXT") and a means of enumerating conflicting short filenames (for example, "MICROS~2.TXT" and "MICROS~3.TXT"). It is unclear whether this patent would cover an implementation of FAT without explicit long filename capabilities. Hard links in Unix file systems do not appear to be prior art: deleting a FAT file via its long name will also remove its short name. Renaming a file to a "short" name also updates the long file name for coherency; similarly, renaming a file to a "long" name will allocate a new "short" name. In NTFS, hard links and dual names are separate concepts and each hard link has two names. Finally, at the API level, both names are always provided together when a directory lookup is requested from the system; they do not appear as two separate files and do not have to be "matched" to determine unique files.

U.S. Patent 5,579,517 - Common name space for long and short filenames. Filed for on 1995-04-24. This covers the method of chaining together multiple consecutive 8.3 named directory entries to hold long filenames, with some of the entries specially marked to prevent their confusing older, long filename-unaware FAT implementations.




Yeah, that's some mind blowing stuff there, nobody should be allowed to steal those precious ideas... I mean, FAT32 is soooooooooo advanced, it's not like people would have said f*ck FAT32 and used EXT2/XFS/ZFS/any-other-FS instead had Windows with it's 90%+ marketshare supported it... It's not as if Microsoft bent over the entire industry to force their inferior technology on them, rather than support superior open standards. /sarcasm

balister 09/13/2011 5:11 AM
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The reason is getting all this money is they hold several patents for software aspects used by Linux. Since Android is a flavor of Linux, it's using some of those patented software. What will be scary is what happens in the Oracle/Google case where Oracle is going after Google for including aspects of Java that Oracle holds patents on.

Wish I Was Wealthy 09/13/2011 5:38 AM
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Viewsonic & Acer,not for me! I've never been into those two OEM manufacturers & never will.

ericburnby 09/13/2011 6:52 AM
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Once Apple and Oracle get their cut that "free" OS called Android isn't going to be "free" (or cheap) anymore.

But that's nothing. The biggest threat to Android/Google is not MS, Apple or Oracle. It's Andy Rubin himself. Between stealing IP from Apple (when he worked there) and incorporating it into Android to the e-mail where he basically suggests they use Java without a license and defend their decision later (and make enemies along the way) he's making Apple's and Oracle's cases for them.

CPU666d1 09/13/2011 7:12 AM
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At least acer & viewsonic pay up,they know what the price is of a court battle.