Microsoft and Samsung today announced a new agreement that will see the two companies cross-license their patent portfolios. Microsoft seems to have the upper hand in the deal though as the agreement also sees Samsung paying it royalties for smartphones and tablets running Google Android. Samsung also agreed to cooperate in the development and marketing of Windows Phone.
“Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality,” said Andy Lees, president, Windows Phone Division, Microsoft. “Microsoft believes in a model where all our partners can grow and profit based on our platform.”
“Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” said Dr. Won-Pyo Hong, executive vice president of global product strategy at Samsung’s mobile communication division. “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.”
Some rumours have suggested that Samsung will pay royalties up to US $15 per Android phone.
Needless to say, Google is not too impressed with the move, going as far as calling it extortion in a statement:
“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.”
I’m guessing that this one is far from over…