Microsoft Patent Licensing Deals are Extortion – Google [Google Reportedly Calls Microsoft's Charging for Android License as Extortion; Microsoft Says Google Should Stop Whining & Start Paying]

Posted on TFTS by J. Angelo Racoma on Wednesday, 28. September 2011 under: Computers & Computing, Mobile/Cell Phones, PCs, Notebooks, Netbooks & Tablets

Folks, we’re seeing another patent drama unfolding right before our eyes. We earlier reported that Samsung and Microsoft have inked a cross-licensing deal in which Samsung pays Microsoft royalties for each and every Android smartphone and tablet sold. Now, Google and Microsoft have reportedly engaged in word wars over the issue.

We say “reportedly” because we’re still checking out the facts and conversations as they happen. TechCrunch’s MG Siegler cites Google as having called Microsoft’s tactics as a measure to “extort” profit from the Android platform. Google reportedly says:

This is the same tactic we’ve seen time and again from Microsoft. Failing to succeed in the smartphone market, they are resorting to legal measures to extort profit from others’ achievements and hinder the pace of innovation. We remain focused on building new technology and supporting Android partners.

And in response, Microsoft’s corporate VP for corporate communications Frank X. Shaw tweeted what seems to be a hit at Google.

let me boil down the Google statment they gave to @parislemon, from 48 words to 1: Waaaah.

As a brief backgrounder, Samsung and Microsoft have recently signed a patent licensing agreement similar to the deal Microsoft had with HTC. That is, Samsung will pay Microsoft a licensing fee for Android smartphones and tablets sold. Microsoft argues that Android violates a few technology patents that they own, and are therefore liable to pay a licensing fee.

Google cries foul, though, as they are claiming the Android platform is based on standards which are supposedly “free.” And with Microsoft attempting to squeeze out revenue from what is supposedly free, they are effectively extorting the money, if not from manufacturers, then from users (on which cost is eventually passed).

This is a long-debated issue, dating back to when Android first took off in the market. Microsoft has always claimed that Android is not free, and has worked out licensing deals with mobile manufacturers in what the company considers as intellectual property “driving innovation.” So far, they have had a deal with HTC and a few smaller companies. Samsung’s joining the fold comes as a big blow to Google, as it’s tantamount to the biggest Android OEM admitting that Google’s technology holdings are weak. Even with the Motorola Mobility acquisition, Google still doesn’t have enough legal ammo to defend Android from patent litigation.

Microsoft is currently a small player in the smartphone and tablet market, but it seems its strategy of working out licensing deals with Android manufacturers is getting them better returns than Apple’s direct, no-holds barred approach in patent litigation. Microsoft’s mobile thrust seems to be if you can’t beat ‘em, ask them to pay.