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April 15, 2015

Microsoft slashes patent licensing fees for OEMs that pre-install its apps and services

by John_A

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Despite having its own mobile operating system to foster, Microsoft cares very much about other platforms. The company invests heavily in supporting users of Android and iOS devices in addition to Windows. Late last month, Microosft had signed deals with eleven hardware manufacturers to pre-install select apps and services. The deals put Office, OneDrive, and Skype onto a multitude of Android devices that are available now and on the way. For example, the Galaxy S6 and Galaxy S6 Edge feature the aforementioned Microsoft software products.

So what is it that these companies get in return for having Microsoft apps and services pre-installed? Discounted patent licensing fees. Companies such as Samsung and Dell have access to Microsoft’s patent portfolio at a discounted price. It costs them less to implement the patents into their products and all that is required is bundling a few items. The decision to slash patent licensing fees has reportedly helped Microsoft as hardware manufacturers are always seeking to expand gross margins.

Source: Digitimes

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