Samsung Has Paid Last Year 1 billion to Microsoft for Android Patents

It seems impossible. But last year, Samsung had to pay 1 billion dollars for Microsoft… Patent related to its Android mobile devices. Several of the technologies used in these models had been patented by the company before Windows, and after a trial the two companies agreed to a royalty payment for each of the handsets sold. Given the exceptional growth that the Korean company has had in recent years, the amount reaches dizzying figures. The problem is that after the acquisition of Nokia of Microsoft, Samsung wants to renegotiate the terms of the agreement. Storm coming.

Samsung Has Paid Last Year 1 billion to Microsoft for Android Patents

The business of patents is a market reality that sometimes reaches levels that may seem too surreal. For example, Microsoft earns more money from Android handsets sold in the market for computers running Windows Phone. And that has never produced a terminal directly on this platform. But the company was a pioneer in the development of smart phones (although a concept much poorer than the iPhone came to market) and has many patented technologies that are used today in the Android handsets. That has allowed him to charge a lot of money for almost any smartphone with the platform to hit the market.

What many did not expect is the amount of money you can climb this item. And is that some leaked documents indicate that only phones sold by Samsung last year has had to pay 1 billion to the American company, a really high amount that could rise even more if the Korean company continues to increase its dominance of the terminal Android. This amount arises from an agreement reached between the two companies (through trial) including the payment of money for every Android device Samsung selling for seven years. In 2011 the Korean company came to put 81 million devices with this platform. In 2014 is expected to reach 314 million, according to data from IDC.

So, this agreement was prior to the purchase of Nokia by Microsoft. According to Samsung, this acquisition marks a change in the market situation and therefore should renegotiate the terms of the agreement. Something the American company does not seem willing to accept. So the controversy and the patent war become served. Such confrontations have kept the courts busy for half the world. One of the most famous fighting has been the Samsung vs. Apple itself, which in some cases have led to a temporary ban on the sale of certain models.

It has also led to surreal situations, like the purchase of Motorola by Google three years ago. The search engine company said by active and passive I had plans to develop the business of Motorola (the largest acquisition in the history of Google), but all the specialists explain this purchase by an extensive patent portfolio of the firm. The result: a few months ago Google reached an agreement with Lenovo to sell the manufacturer for 2.910 million dollars when you had purchased 12,500 million. And of course, the patent portfolio remains with Google. It’s just an example of the strange situations that leads this ongoing patent war between technology companies. What will be next?

Albert Palacci is passionate about digital marketing and mobile devices, he is writing for several online magazines and websites, also you can check his personal blog and you can find more about him on his Twitter profile or Pinterest profile.

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I am a professional marketer graduated from London Business School specializing in writing for several online magazines and blogs.

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