Microsoft Signs Patent-Protection Deal with Compal Electronics, Highlighting Android Patent Disputes

Strategic Insights -

Microsoft's ongoing crusade against Android's patent infringements has taken another turn with the signing of a patent-protection deal with Compal Electronics, a leading original design manufacturing (ODM) industry player. This agreement, which makes Compal the 10th device maker to sign a patent-protection deal with Microsoft, underscores the complex and contentious relationship between Microsoft and Google's Android platform.

Microsoft has been actively pursuing patent licensing agreements with Android manufacturers, pressing them to license its patents that it claims are infringed upon by Google's operating system. The software giant has already inked patent agreements with several prominent hardware makers, including Samsung, HTC, Wistron, Quanta, Acer, and General Dynamics Itronix. Compal Electronics, which generates approximately $28 billion in annual revenues, has agreed to pay undisclosed royalties to Microsoft for the use of Google's Android and Chrome operating systems in its smartphones, tablets, and other consumer electronics.

Key Takeaways:

  • Microsoft has signed a patent-protection deal with Compal Electronics, its 10th such agreement with an Android device maker, further highlighting its aggressive stance on patent licensing.
  • The deal covers the use of Google's Android and Chrome operating systems in Compal's smartphones, tablets, and other consumer electronics, for which the company will pay undisclosed royalties to Microsoft.
  • Compal Electronics, a leading ODM player, has agreed to license Microsoft's patent portfolio, marking a significant development in the software giant's efforts to address patent issues surrounding Android.
  • Horacio Gutierrez, Microsoft's corporate vice president and deputy general counsel, stated that the company is proud of the continued success of its licensing programme in resolving IP issues surrounding Android and Chrome.
  • Microsoft's patent agreements with Android manufacturers, including Samsung, HTC, Wistron, Quanta, Acer, and General Dynamics Itronix, underscore its efforts to profit from Google's open-source Android platform.
  • Google views Microsoft's patent disputes as an attempt to extort royalties from Android device makers, contradicting Microsoft's claims that Android infringes on its patents.

Statistics:

  • $28 billion: Compal Electronics' annual revenues (as of the time of the agreement).
  • 10: The number of patent-protection deals signed by Microsoft with Android device makers.
  • Half of the world's ODM industry for Android and Chrome devices: The portion of the ODM industry now under licence to Microsoft's patent portfolio, according to Horacio Gutierrez.

Sources:

  • EFY News Network, "Microsoft signs patent-protection deal with Compal Electronics" (2011)
  • Contify.com, "Microsoft signs patent-protection deal with Compal Electronics" (2011)