Microsoft and Samsung Alliance in Smartphone Wars
For a difference, Microsoft and Samsung is doing the opposite of what every big technology companies have been doing. Not suing each other over patents and instead sharing it with each other.
The two technology company agreed to share each other's patent portfolio to take on both Apple and Google for a market share for smartphones and tablets. This alliance was seen by Google as another thing. They claim that Microsoft is extorting money from Samsung.
Samsung is the manufacturer of the Samsung Galaxy S and Galaxy Tab, the most successful of the Android smartphones and tablets. This brings into question on why would Samsung need to partner with Microsoft against Apple and Android which includes many of their products. Apple products contains chips which Samsung produces.
The deal between the Samsung and Microsoft besides from sharing each other's patents include Samsung paying Microsoft royalties over every Android device they produce. Google is clearly unhappy over making the biggest seller of Android devices having to pay Microsoft over an OS they made and gave to everyone for free.
"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 other." a statement from Google said insinuating that Microsoft has extorted Samsung over Android.
Microsoft claims that many patents they owned were infringed in making the Android OS. Many other companies such as HTC, Viewtronic and Acer had the same deal with Microsoft. And the similarity with all those companies is that they also produce Windows 7 phones and tablets. They have ended the patent dispute by cross-licensing patents and paying royalties with Microsoft.
Only one other company has not decided to strike a deal with Microsoft, Motorola Mobility. Last August, Google has agreed to purchase the company for $12.5 billion. The pending acquisition itself might be the reason why it has not agreed with Microsoft's cross-licensing patent agreements.
With the cross-licensing agreements, Microsoft stand to gain more revenue from Android devices than their own Windows 7 phones and tablets. Windows 7 for phones however is still at its infancy and an update Windows 7.5 "Mango" is now available.