Google Accuses Microsoft of Extorting Profit
Shortly after Microsoft announced a new cross-licensing deal with Samsung on Wednesday, which will result in Microsoft receiving royalties for the sale of Samsung mobile phones and tablets that run the Android mobile platform, a spokesperson for Google accused Microsoft of legal extortion.
“This is the same tactic we've seen time and again from Microsoft,” said the spokesperson in an email sent to the press. The text of the email was posted on the San Francisco Chronicle's website.
“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.” the Google email stated. “”We remain focused on building new technology and supporting Android partners.”
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The conflict between Google and Microsoft surrounds the issue of patents, and an article from technology blog TFTS explains a complicated situation in a simple way.
Microsoft says that Android violates a few of their patents, and therefore argues that they also deserve to be compensated in the form of licensing fees, the article says. Google, however, says Microsoft should receive nothing, arguing that the Android platform is based on standards that are supposed to be free.
Though Google argues that the deal is a hindrance to innovation, Dr. Won-Pyo Hong, executive vice president of global product strategy at Samsung’s mobile communication division, seems to think it will do just the opposite, at least for the two companies involved.
“Through the cross-licensing of our respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry,” he said. “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.”
Not only will Microsoft receive royalties from Android devices, but the company also will use the deal as an opportunity to further promote its Windows Phone mobile operating system.
Last year Microsoft signed a deal with HTC that is similar to its deal with Samsung, which means that the two largest Android handset manufacturers now have licenses to Microsoft's patent portfolio.
“These two companies together accounted for more than half of all Android phones sold in the U.S. over the past year,” write Brad Smith and Horacio Gutierrez, who serve as Microsoft's general counsel and deputy general counsel, in a blog post.
In the post, the duo says the deal proves that “licensing works” and suggests that much can be accomplished by companies that work out intellectual property issues“in a responsible manner.”
“There undoubtedly will be a good deal of additional drama before this new generation of patent issues sorts itself out in its entirety,” they write. “But as all of our agreements illustrate, a solution is increasingly in sight. Put in this context, today’s announcement does not yet represent the beginning of the end for this industry-wide assortment of issues. But to borrow a well-known phrase, perhaps we’ve now reached the end of the beginning.”
