A royalty agreement: Microsoft and Dell lock horns with Google over Android.

March 31, 2014 2:45 PM

The driving force in today’s world is the acquisition of wealth, and Microsoft is seeking retribution. They want to salvage something from the losses has faced ever since they entered late into the cut throat world of smart phones.

MicroDell - new strategy?

Announcing a patent deal with Dell earlier this week, Microsoft is claiming that Google and its million dollar baby Android are ripping their designs. Intellectual property related to Android, the Xbox consoles and Chrome OS, are on the table as far as the patent licensing deal between these two tech giants goes. It is equally hilarious to note that Microsoft has nothing to do with the conception or development of these projects significantly.

In a bid to earn up to $2 billion a year in the royalty game, Microsoft has initiated this deal to get Dell to take up the route that the likes of Samsung, HTC, and LG have already taken. Microsoft earns $5 per Android device sold and this covers a lion’s share of 70% in the market out there.  Google had its eureka moment when they decided to develop Android. The level of acceptance of smart phones is quite remarkable, and thus is a scare to Microsoft.

While this is not entirely a win-win situation for Microsoft, Dell has a little piece of the royalty pie. Microsoft has agreed to pay Dell an undisclosed amount for patents in the design of the Xbox consoles. This really isn’t good for Dell, seeing that it is being scared into paying the price, with little returns.

The official statement from Microsoft reads,

“Through this arrangement, Microsoft and Dell have agreed to license each company’s applicable intellectual property related to Android and Chrome OS devices and Xbox gaming consoles. Under the terms of the agreement, they agreed on royalties for Dell’s products running the Android or Chrome platforms and on consideration to Dell for a license for Xbox gaming consoles.”

Google and Android

Seeing that Microsoft recently acquired Nokia, and is already earning a direct revenue from this deal, the merger with Dell sweetens the pie even more. Can I say the same for Dell? I am unsure at this point. It does not help that Microsoft has no longer got to worry about Android alone. The emergence of low-end smartphones with low specs based Firefox OS and Chrome OS are beginning to pander to the low-end market. Way to go. The emergence of these alternatives is sure to make an impact on the market and the industry themselves. It is no surprise that Microsoft wants to claim these patents as a contingency plan. Do you want to wait and watch how far Microsoft tries to earn their profitable returns with moves like this?

Google has a pretty amazing portfolio, big enough to take on this challenge. The question is, if Google is ready to take on Microsoft any time soon. Sound the alarm! This is going to take some time, but I’m sure it will be a fight to the finish. Whose side are you on? What do you think of this move? Love it? Hate it? Sound off below in the comments.