Microsoft May Soon Be Collecting Royalty Fees From Pantech

by: Christine TorralbaJanuary 17, 2012
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On the topic of patent infringement cases, the latest to enter the news is the issue between Microsoft and South Korea’s third largest handset manufacturer, Pantech. According to an earlier report by Yonhap News, camps between the two companies are discussing patent usage issues. However, details have not yet been finalized.

It is highly possible that Pantech will be signing a royalty agreement with Microsoft containing a payment of $5 for every sold Android device. This is the same fee rumored to have been required from other Android OEMs such as Samsung, LG, and HTC.

At CES 2012, Pantech launched their new devices the Pantech Burst 4G LTE smartphone and the Pantech Element 4G LTE tablet.

If ever Pantech will sign to this agreement, Microsoft will already be collecting royalty fees from almost 70% of Android device manufacturers. In fact, many have witnessed the ongoing animosity between them and Google on their public social media pages including blogs and Twitter.

As of this writing, Motorola is being sued by Microsoft for similar Android patent issues. However, Google is in the process of acquiring Motorola. It will be very interesting to see how this develops.