14 DAY TRIAL // Microsoft’s making a fortune out of its Android patents, and today a new company has signed up to use these technologies and pay the company an undisclosed fee for every sold product.
Star Micronics, maker of Android-based commercial printers and computing devices, has signed a worldwide patent licensing agreement with Microsoft, but terms of the deal and other details have not been disclosed.
“The addition of Star Micronics to our Android licensing program demonstrates the global value this portfolio continues to hold for companies of all sizes,” says Nick Psyhogeos, president of Microsoft Technology Licensing. “Building upon Microsoft innovation allows our partners to deliver state-of-the art technology for customers around the world.”
$2 billion per year off Android patents
Microsoft makes a lot of money out of this Android patents without moving a single finger, as the majority of companies building Android products have signed licensing deals in order to use such technologies. Samsung, LG, Canon, and many others are all paying Microsoft just because they integrated its tech into their products.
According to some estimates, Android patents generate approximately $2 billion (€1.75 million) every year for Microsoft, with some people close to the matter indicating that companies pay between $7.5 and $15 for every device they sell. HTC, for example, is believed to pay only $5 (€3.5) per Android device sold, but generally, Microsoft is asking a little bit more than that, in some cases the fee going up to $15 (€11).
Microsoft isn’t talking too much about its Android patents, but the company surely doesn’t wait too long before suing a firm that uses the technology without paying for it, so such agreements are nothing out of the ordinary.
Of course, more companies will sign similar licensing deals in the coming years, so Microsoft’s really playing the winning card with its Android patents.