If you have seen the movie Goodfellas then the title this post resonated with you right away. That is pretty much what Google feels is happening. Google issued an irate response to Microsoft’s cross-licensing agreement with Samsung.The deal calls for Samsung to pay royalties to Microsoft for each Android smartphone sold. Microsoft has almost the same agreements with ViewSonic, HTC and Acer. HTC and Samsung were responsible for more than half of all Android phones sold in 2011 in the United States. Analysts estimate Android pulls in a most 5 times the revenue that Windows Phone does for Microsoft.
Google said “This is the same tactic we’ve seen time and again from Microsoft. Failing to succeed in the smartphone market, they are resorting to legal measures to extort profit from others’ achievements and hinder the pace of innovation. We remain focused on building new technology and supporting Android partners.”
Microsoft’s general counsel Brad Smith and deputy general counsel Horacio Gutierrez wrote in the post that “We recognize that some businesses and commentators – Google chief among them – have complained about the potential impact of patents on Android and software innovation; To them, we say this: look at today’s announcement. If industry leaders such as Samsung and HTC can enter into these agreements, doesn’t this provide a clear path forward?” In other words if you use Android you will be paying Microsoft protection money.
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