Microsoft Gets Money from LG for Android Use

Article by George Norman (Cybersecurity Editor)

on 13 Jan 2012

For using the Google-developed mobile operating system Android on its tablets, mobile phones, and other devices, LG has to give money to Microsoft. The same applies for LG devices that run on the Chrome OS platform.

LG, the second-largest South Korean conglomerate company following Samsung, and Microsoft, the Redmond-based software giant that needs no introduction, announced yesterday that they signed a patent agreement that offers broad coverage under Microsoft’s patent portfolio for LG’s tablets, mobile phones and other consumer devices running the Android or Chrome OS Platform.

Specifics on the patent agreement have not been released to the public, but the gist of it is that for every Android and Chrome OS-powered device LG sells, it has to give a cut to Microsoft. And LG isn’t the only one who has to do that. Microsoft inked a similar patent deal with Samsung, HTC, Acer and ViewSonic. They too have to give Microsoft a cut for the Android and Chrome OS devices they sell. And Casio has to give Microsoft a cut for Linux-powered cameras it sells, but that’s another story.

Getting back to the main topic, Microsoft was quite pleased to ink the abovementioned patent agreement with LG. Corporate VP and Deputy General Counsel, Horatio Gutierrez, touted the fact that Microsoft gets a cut for more than 70% of all Android smartphones sold in the us.

“We are pleased to have built upon our longstanding relationship with LG to reach a mutually beneficial agreement,” said Gutierrez. “Together with our 10 previous agreements with Android and Chrome OS device manufacturers, including HTC, Samsung and Acer, this agreement with LG means that more than 70 percent of all Android smartphones sold in the U.S. are now receiving coverage under Microsoft’s patent portfolio. We are proud of the continued success of our program in resolving the IP [Intellectual Property] issues surrounding Android and Chrome OS.”



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