http://technorati.com/technology/article/the-ghost-in-the-machine-microsoft/
Published: May 31, 2011 at 12:29 pm
That's a snazzy slick super cool new Android device you have there! Most likely, you chose it because Android is a new open source OS based on Linux, and you wanted some independence from the usual iPhone / Blackberry / Microsoft Windows Phone options. Not so fast.
Microsoft actually has their hand in your pocket. Welcome to "Microsoft Android".
Impossible you say? Android is from Google, and has nothing to do with Microsoft? Just like Voldermort, it seems Microsoft has gone over to the dark side, the "Ghost In The Machine", haunting the success of Android.
For those who aren't well versed about Android, allow me a moment to fill in a few quick details. You see, Android was a relatively new OS. Android is actually a software stack for mobile devices that includes an operating system, middleware and key applications. Google Inc. purchased the initial developer of the software, Android Inc., in 2005. Android's mobile operating system is based on the Linux kernel. Google and other members of the Open Handset Alliance collaborated on Android's development and release, and the Android Open Source Project (AOSP) is tasked with the maintenance and further development of Android. The Android operating system is the world's best-selling Smartphone platform.
STOP RIGHT THERE. The last sentence above is the only excuse Microsoft needs for an all out attack. In an effort to delay the success of Android, and profit from it at the same time, Microsoft decided to get a "FEE" for every Android device sold.
How is this all even possible? How does a company, any company, up and decide they are going to get a fee? Simple.
Either an Android device manufacturer pay Microsoft a "patent fee", or Microsoft will sue them. Whether valid or not, just the prospect of a massive company like Microsoft with infinitely deep pockets taking you to court... smaller companies simply roll over and pay the fee. That's protection money. Some are saying that this is basically mafia behavior. Can you say Mafiasoft?
Most people have no idea, but behind the curtain, Microsoft actually is making more money from Android than they are on their own Windows Phone OS. Mr. Walter Pritchard, a Citi analyst, revealed that Microsoft extracts a $5 "patent fee" from HTC for every Android device they sell. Microsoft is also suing other Android makers, and is seeking $7.50-$12.50 per device.
Going back to almost since Linux was created, Microsoft has argued that it infringes on Microsoft Intellectual Property, and as a result, Microsoft has often sought, some say bullied, royalties from businesses who base their products on Linux.
Because Microsoft is upping their offensive with Android, there are whispers and rumors that Microsoft and Apple may tussle a bit in new court action as well.
The problem, is that large tech companies, such as Microsoft, have purposely vague, huge patent portfolios. This vagueness overlaps with some other large company's vague portfolio, and BAM. You have the decision to go to court, threaten to go to court, or... extract a fee and label it "licensing fee" or "patent fee".
As an Android device owner, I can just hear you now... "Just when I thought I was out, they pull me back in."
I would love to know what you think. Please leave comments and share this post with your friends.
How is this all even possible? How does a company, any company, up and decide they are going to get a fee? Simple.
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