October 25, 2014

HTC to Pay Microsoft Royalties on Android Phones

As we predicted in March, Microsoft has strong-armed HTC into signing a licensing agreement to pay Microsoft royalties for HTC’s Android phones.

The good news here is that an Apple-style lawsuit is unlikely now that HTC has agreed to cough up the money. The bad news is that we’ll all be paying Microsoft a bit for each HTC Android phone we buy.

This is the latest in a string of licensing agreements Microsoft has reached with companies that use Linux-based code, which Microsoft claims to hold patents on. Since no one to date has challenged Microsoft on these claims, it’s unclear whether they would hold up in court.