Microsoft continues to cash in from Android

It has been reported recently that Microsoft is actually making more revenue from Android than from its own Windows Phone 7, let alone before the Wistron and Microsoft deal that has recently been announced.

The deal between Wistron and Microsoft will certainly see Microsoft collecting lots of royalties in return for allowing Wistron to use Microsoft patents in the process of manufacturing tablets, mobiles phones, ebook readers and lots of other similar devices. Although the payments haven’t been disclosed we expect that it will certainly be a fairly significant revenue stream especially at the speed these kind of devices are flying off the shelves currently.

“We are pleased that Wistron is taking advantage of our industry-wide licensing program, established to help companies address Android’s IP issues,” said Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft.

Many other companies have recently made similar deals with Microsoft, such as General Dynamics Itronix, Velocity Micro and Onkyo, all of which will be paying Microsoft royalties. It seems Microsoft now has a share in both sides of the market, whether it selling the Microsoft software and platforms, or using Microsoft’s rivals’ products but getting paid for using that privilege. Certainly seems like they are betting safe as they now can’t lose out if one side of the market turns sour.

The latest report from Reuters is that Microsoft is now asking Samsung for as much as $15 a handset for the use of Microsoft’s intellectual property – $10 is a more likely outcome. Any such agreement would closely mimic that which Microsoft reached with HTC last year – although as Samsung does not produce any Windows Phone handsets it has less leverage.

We are at least glad that Microsoft is making good use of its intellectual property and not just becoming a patent troll.