14 DAY TRIAL // Microsoft has struck a cross-licensing patent deal with Samsung. Under the threat of litigation, the two companies meet at half way and agreed to license each others' patents. Neither is giving away too many details on the deal, but one thing is clear, Samsung will be paying Microsoft for each Android phone it sells.
While it may not be as bad as it seems, Samsung may be getting more in return than it's losing, it's a great image blow for Android which can't really claim it's free anymore.
Out of the big smartphone makers, HTC had already signed a similar deal. Granted, HTC did not have the patent portfolio Samsung boasts.
Both Microsoft and Samsung are trying to spin this in a positive light. Google on the other hand, as expected, has less kind words about the deal and Microsoft.
To the search giant, the move is simple, Microsoft is extorting successful tech companies after failing to compete in the market on the merits of its own products alone.
"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," Google said in a statement.
"We remain focused on building new technology and supporting Android partners," it added.
Its point of view is not unexpected, what may be, a bit, is the fact that it's not mincing words, it literally uses 'extort' in its response. But Google hasn't been holding back for a while now.
It came out with a post in early August, before the Motorola deal, accusing Microsoft of being a patent troll that threatens innovation. But Google has been doing little other than talking back at Microsoft.
It moved to buy Motorola, but the deal is still pending. It sold HTC several patents to fight off Apple, but that's pretty much it. In fact, Samsung said as much after striking the Microsoft deal, albeit in a more veiled manner.
Microsoft, anticipating Google's comments had a comment of its own to make.
"We recognize that some businesses and commentators—Google chief among them—have complained about the potential impact of patents on Android and software innovation," Brad Smith and Horacio Gutierrez, Microsoft's lead attorneys, said.
"To them, we say this: look at today's announcement. If industry leaders such as Samsung and HTC can enter into these agreements, doesn't this provide a clear path forward?," they added.