Velocity Micro Next in Line to Pay Microsoft for Android-toting Hardware Licensing Fees

June 29, 2011
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Just a couple of days ago we let you know of the then-latest group to sign a deal with Microsoft for their patent licenses including their latest Android-carrying hardware. This company goes by the name General Dynamics Itronix and of the deal Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft, said “[it] is an example of how industry leaders address intellectual property.” Smug indeed - next comes Velocity Micro.

The deal signed with Microsoft today includes unspecified mobile patents including those related to Velocity Micro's Cruz android tablets including those revealed back at CES 2011. The amount nor the terms of the agreement have not yet been made public, but based on what we're to understand on what Microsoft is receiving from hardware giant HTC, we'd expect at least a few USD per piece of hardware sold. This will add to Microsoft's ever-mounting stack of cash coming in from Android-based hardware being pumped out into the mobile landscape today.

Incase you're unaware, the deal with HTC gives Microsoft a total of $5 per piece of hardware sold by HTC, that being each piece of hardware that falls in under Microsoft's patent collection, this bringing in much more cash for Microsoft than the total amount of revenue made from their own mobile OS Windows Phone 7. This entire epic is recounted back in the post Microsoft Receives $5 per phone HTC sells. Legally Microsoft is making quite a killing, if you know what I mean.

Then there's a bit of a quote from Velocity Micro CEO Randy Copeland that relates to this deal. Have at it, Randy, and realize what you're doing:  ”By entering into this agreement with Microsoft,” he says, “Velocity Micro, Inc., will be able to better meet the needs of our customers with the introduction of exciting new Cruz tablets having increased performance and functionality.”

Android may be free, but the boats it floats in on sure the heck are not. Remember that.

[via SlashGear]


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  • Anonymous

    So, is this issue a hardware issue or a software issue?  (why those companies have to pay microsoft for android powered phones)

  • http://twitter.com/jakcrow Jak Crow

    Why the hell are these companies caving so quickly to patents that microsoft has yet to prove? This is getting ridiculous. Hopefully one of the larger companies ms threatens takes it to court and has these patent claims thrown out and all those previous deals voided.