Microsoft Licenses IP for Android Devices

Intellectual property (IP) or patent licensing agreements between Microsoft and most Android device manufacturers mean revenue for Microsoft and may also positively affect the market for Windows Phones. The agreements mean that the top Android handset and device manufacturers are licensing Microsoft IP, and that those without agreements may find themselves involved in costly patent infringement lawsuits.

Microsoft claims certain features of devices using the Android OS infringe on Microsoft patents. Although details of the agreements are not public, and individual agreements may differ substantially, the agreements typically provide “broad coverage” of Microsoft IP for the Android platform in tablets, smartphones, and consumer devices. The agreements involve the payment of royalties to Microsoft and may include requirements that the manufacturer cooperate in the development and marketing of Windows Phone—based handsets.

HTC was one of the first companies to license Microsoft’s IP in Apr. 2010, and since Aug. 2011, Acer, General Dynamics, Itronix, Onkyo, Quanta, Samsung, Velocity Micro, ViewSonic, and Wistron have also signed licensing agreements. At least one of the agreements, with Samsung, involves cross-licensing of patents so that Samsung is assured its products will not infringe on Microsoft patents, and Microsoft is assured its products will not infringe on related Samsung patents.