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Microsoft making a fortune from royalties on Android smartphones

Microsoft have had their claws in the Android market now for some time, and the latest reports we have received show that LG are paying them royalties now to use the Android operating system. The agreement between LG and Microsoft mean that they can use patented technology in their phones and tablets.

LG aren’t alone in being forced to pay Microsoft royalties for sales of Android devices, with ten other companies, such as Acer and HTC in a similar position. Microsoft say that 70% of all Android smartphones sold in America are covered by this royalties agreement.

It is a standing joke that Microsoft are actually making more money from Android patent royalties than they are from sales of their own Windows powered mobile phones. The only major organisation who don’t pay Microsoft under the licensing agreement terms are Motorola Mobility who are in talks with Google regarding a buy over.

Kitguru says: Microsoft are said to be raking in many millions of dollars from these agreements alone.

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