Microsoft Imposed Royalty Fees on Samsung for Manufacturing Android Based Hardwares
Undeniably, Microsoft has incredible reputation in manufacturing computers and IT industry. The Windows operating system by Microsoft is almost reining the IT industry. However, few of the other giant players such as Google has launched their Smartphone in the market and most of the mobile phone manufacturing companies have started producing Android based devices.
Microsoft has also made its presence felt in Smartphone section with its Windows Mobile phone running on windows operating system. Samsung deals with both the companies respectively, but the sale of the Android OS based Smartphone has increased tremendously, which has made the producer increase the production of phone running on this operating system.
This has come as a setback to Microsoft and they have imposed royalty fees on Samsung. Now let us get some insight on events happening between Microsoft and Samsung, and more:
What’s happening between Microsoft and Samsung?
- Microsoft has taken a decision to impose royalty charge of 15$ on each of the Samsung Android based mobile phones.
- Samsung has requested to cut down or lower down this royalty penalty from 15$ to 10$. It is currently being considered by the Microsoft, but they haven’t gone really public about their reconsideration on the loyalty fees as yet.
- Microsoft has taken this step on the grounds of Patent troll activity or patent infringement. They argue that Samsung has misused its patent by under-manufacturing Windows mobile phone according to the volume as agreed. Samsung has also been accused of misusing the patent rights, in order to get a grip on bigger market shares.
What are the factors and facts behind Microsoft’s BIG decision to charge Samsung ?
- Most of the people believe that Microsoft has wrongly filed a lawsuit against Samsung and used the advantage of being the most reputed company in the industry. People also think that the main reason behind charging a huge amount of royalty fee on each mobile phone is only to get back at the rival company.
- There is another partners of Microsoft such as HTC, who only pay 5 $ as the royalty charge.
- Few market experts argue that Samsung is only manufacturing the android based Smartphone to meet high volume of public demand. However, Microsoft has a valid reason to charge them with the royalty fee or have Samsung completely stop the manufacturing of android be smart phones.
- The experts also conclude that this could be one of the reasons through which Microsoft is trying to win the market by eliminating their competitors.
How right is Microsoft ?
Critics are objecting Microsoft forcing Samsung to pay $15 huge on each android based hardware. They also state that it is unfair to penalize Samsung under the act of Patent Troll. It is very clear that Samsung deals with both companies and manufactures devices having two different operating systems. However, it is fortunate for Samsung that the android based mobile phones are high in demand. Microsoft must review and revise their terms and conditions before they could reasonably file a lawsuit against the partner company.