Microsoft technology in Android costs Samsung $1 billion a year

Microsoft technology in Android costs Samsung $1 billion a year

4 October 2014, 16:16
Ronnie Mansolillo
0
158

In a glimpse of the financial stakes in the smartphone-patent wars, Microsoft Corp. said Friday that Samsung Electronics Ltd. paid the software giant more than $1 billion for an annual fee to use Microsoft technology in Samsung phones.

Samsung sells smartphones and tablets powered by Google Inc. GOOG, +0.91%  Android software. But Microsoft has said some of its patents are included in Android technologies, such as methods for displaying multiple windows in a Web browser. Therefore, Samsung and other smartphone makers pay royalty fees to Microsoft for each Android device they sell.

Neither Samsung 005930, -1.30%  nor Microsoft MSFT, +0.72%  have disclosed previously the size of these royalty payments.

An expanded version of this report appears at WSJ.com.