Microsoft and Onkyo Corporation have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for certain Onkyo tablets running the Android Platform,” reported the Microsoft News Center on Thursday.
On this agreement with Onkyo, Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft said, “We are pleased that Onkyo has taken advantage of our patent licensing program for Android devices and has signed this agreement. This agreement and similar agreements recently announced evidence the momentum and success of our licensing program.”
Earlier this week General Dynamics and Velocity Micro – Android vendors signed patent-protection deals with Microsoft.
Onkyo, headquartered in Japan, sells a variety of Windows PCs, audio components and home-theater peripherals and systems.
ZDNet opines, “Microsoft is definitely trying to make a point by trickling out the patent-licensing agreements one after another. And Microsoft’s point is that Android violates Microsoft patents and companies that are betting on Android are making a risky bet.
Microsoft has convinced a number of Android and Linux-based device makers that it’s better and cheaper to pay than fight. Among those companies with Android- and Linux-based devices that have capitulated, besides General Dynamics, Velocity and Onkyo, are HTC, Amazon, TomTom, Buffalo and others.
Barnes & Noble, so far, is not backing down, and is taking its fight public with Microsoft over its Android-based Nook.
According to B&N’s response to Microsoft’s legal complaint, Microsoft told B&N officials that the Nook infringed six patents that Microsoft claimed to own. However, B&N said that Microsoft officials said they’d share details only if B&N officials signed a non-disclosure agreement. B&N refused to sign an NDA, claiming the patents were public, as was the Nook product.
“Microsoft demanded an exorbitant royalty (on a per device basis) for a license to its patent portfolio for the Nook device and at the end of the meeting Microsoft stated that it would demand an even higher per device royalty for any device that acted ‘more like a computer’ as opposed to an eReader,” B&N said in its response.
Mary-Jo Foley of ZDNet says, “Microsoft is believed to be collecting $5 per user for each Android phone sold from those companies which have signed Microsoft’s patent agreement. I asked Microsoft officials earlier this month if that figure was correct and was told the company had no comment. I am wondering if the Microsoft toll is higher for Android tablets. Based on the B&N comment above, I’d expect it might be.”
On their commitment to licensing intellectual property, Microsoft News Center said, “The patent agreement is another example of the important role intellectual property (IP) plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 700 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open access to Microsoft’s significant R&D investments and its growing, broad patent and IP portfolio.”
Android Community commented on the Microsoft-Onkyo patent agreement, “It appears the floodgates are now open and companies are pouring in to license the patents to keep the Microsoft legal team from beating down their doors. Reports already claim Microsoft is making more from licensing these Android related patents than from Windows Phone. Talk about a case of if you can’t beat them, license them.”