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BY EVAN THOMAS

 

You're watching multisource tech video news analysis from Newsy.

 

Google is accusing Microsoft of extorting its Android handset makers. Samsung signed a patent-licensing deal with Microsoft this week, an agreement Google says is unfair.



Samsung’s Android phones use Microsoft patents, so Microsoft will now collect royalties for each Samsung device running Google’s Android OS. Under the terms of the agreement, Samsung will also help Microsoft develop its own Windows Phone platform. (Video: YouTube)

 

TechCrunch has Google’s statement, which called Microsoft out on its licensing practices.



“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 others’ achievements and hinder the pace of innovation.”



Fightin’ words. But it gets better. Microsoft’s legal counsel released a statement of its own -- saying licensing isn’t hurting Google’s handset makers.



“These agreements prove that licensing works. … look at today’s announcement. If industry leaders such as Samsung and HTC can enter into these agreements, doesn’t this provide a clear path forward?“



Microsoft corporate communications lead Frank Shaw makes a slightly more pointed rebuttal on Twitter.



“let me boil down the Google statment ... from 48 words to 1: Waaaah.”



According to PCWorld, this isn’t just about Google’s phones. Now Samsung will be putting more work into Microsoft’s hardware, too.



“With this deal, Samsung's priorities may shift. If you like Windows Phone and want to see it prosper, that's great news. If you're Google, it's a reason to be very, very upset.”


But ZDnet wonders-- why even develop your own phone if you’re making so much off your competition?



“Android is rapidly becoming Microsoft’s favorite cash cow. I really have [to] wonder if Microsoft cares whether Windows Phone lives or dies given how much cash it’s making from Android.”



With Samsung on board, Microsoft now has licensing deals with two of the three largest Android handset manufacturers. Only Motorola hasn’t signed yet -- they’re too busy suing Microsoft for patent infringement.



Transcript by Newsy. 

Business News

Google: Microsoft's Licensing Deal with Samsung 'Extortion'

September 29, 2011
(1:58)
Samsung has signed a patent portfolio deal with Microsoft, which now gets royalties for every Android device Samsung sells. Google is crying foul.
   
TRANSCRIPT

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