Microsoft Adds Huawei to Growing List of Cash Cows

November 9, 2011

Why is it that when Microsoft runs after other companies for patent issues, it does not surprise us at all? Microsoft recently went after Huawei demanding royalty payments for every Android handset sold by the manufacturer.

Huawei is a fast-growing company and is among the many OEM (original equipment manufacturer) partners of Microsoft,.  Huawei has confirmed that indeed Microsoft has contacted the company regarding patent infringement issues.

For months now, Microsoft has been chasing OEM companies who have been selling phones and tablet PC’s utilizing the Android operating system. According to Microsoft, companies selling such gadgets are misusing Microsoft’s licensed or patented technologies.

Microsoft has started with smaller companies, asking them to pay a royalty fee of at least US$5 per handset or tablet sold. However, Microsoft is starting to chase down Huawei and Samsung who have been making Android phones and are gaining popularity really fast.

Aside from the patent issues and royalty payments per handset sold, it is speculated that Microsoft might make a move to disentangle Google from Android phones. Microsoft could potentially demand that Android handsets should utilize Bing and Bing Maps instead of Google’s own services. If this happens, Microsoft would definitely make more money without even relying on their own Microsoft smartphones sales. Great move for Microsoft, right?

Comments

  • Anonymous

    This article highlights perfectly the absolutely dire need for the patent system to be overhauled. Microsoft doesn’t deserve a single cent that they are currently allowed to extort from the manufacturers of Android devices.