Bonum Certa Men Certa

Microsoft's Android Extortion Gets Price Tags

Using software patents, Microsoft turns Linux into its own cash cow whilst also making it more expensive

Case with dollars



Summary: Techrights' fight against 'Linux tax' from Microsoft is getting a lot more attention this Friday

"BOYCOTT NOVELL" was all about stopping Microsoft tax on GNU/Linux. More people are beginning to wake us and realise that our cause was all along on target, as several distributions of GNU/Linux which paid Microsoft for this 'privilege' simply went extinct (Xandros' price was $50 for Microsoft patents). Our goal was to ensure that people/companies do not become dependent on Microsoft-taxed distributions, as that would simply serve Microsoft's goal of making GNU/Linux its own cash cow. SUSE, Turbolinux, and Linspire were also part of this problem and all those companies went into the ashtray of history. There are more such companies, but they sell hardware, not purely software.



Everyone appears to have just 'discovered' that "HTC Pays Microsoft $5 Per Android Phone" and there is already a lot of coverage about it. Quoting The Register:

Buy an HTC smartphone and $5 of what you spent on it goes to Microsoft - even if you've just bought an Android device.

So says Citi analyst Walter Pritchard in a note sent out to investors today, according to Business Insider.

Microsoft announced the royalty payment deal - the result of a legal settlement - last year, but the amount the software giant receives was not made public. MS has alleged Android infringes its intellectual property, and has other smartphone vendors in its sights.

Pritchard reckons Microsoft is pursuing other Android handset makers for a royalty of $7.50-12.50 per device. HTC clearly got of relatively lightly by settling Microsoft's claims out of court.

[...]

Microsoft can't be too forceful. If can't afford to overly annoy those vendors who're also selling phones based on its Windows Phone OS - they might just drop it, in a huff. Or they may trade lower royalties for a stronger commitment to WinPho - something Microsoft needs far more than even a few hundreds of millions of dollars in royalty payments.


Saumsung, LG, and Kyocera Mita also pay Microsoft for Android. There might be more such companies, perhaps not prominent ones though. Faced with a price tag, people act surprised about it even though our site has highlighted this issue since 2007 when Samsung signed the first such deal and in order to discourage similar deals we called for a boycott. The bottom line is, we do have a problem here, but it is not a new problem. We even found one anti-Linux propagandist writing: "This is just fraud. I really like HTC phones with their Sense interface but I have a Galaxy S II on order and I will not buy any HTC phone again while they give in to Microsoft's blackmail."

According to other news from today, Lodsys wants to go after Android developers. "Patent holding company Lodsys caused a stir recently when it demanded money from iOS developers using in-app payments," says this report, "something it holds a patent for. Now it appears that Android developers could be next in line for a stern email from the firm.

"Android Community has spotted one developer who is claiming to have received a request for payment in relation to integrating in-app payments into an Android app. If true, it could stir up another hornet’s nest of anger in the development community."

"Saumsung, LG, and Kyocera Mita also pay Microsoft for Android."This is actually not news and we alluded to it before. Apple, unlike Google, is a patent aggressor, so it is not the same situation for Android and Apple's hypeOS. Interestingly enough, Microsoft's ally Nokia is also giving a hard time to Apple. How long before Microsoft uses Nokia to sue Android distributors too? Nokia has given hints about it. Microsoft's strategy is to tax Linux from as many directions as possible. It's blackmail [1, 2, 3, 4, 5, 6, 7], so regulators should step in to intervene.

“That’s extortion and we should call it what it is. To say, as Ballmer did, that there is undisclosed balance sheet liability, that’s just extortion and we should refuse to get drawn into that game.”

--Mark Shuttleworth



Recent Techrights' Posts

Richard Stallman's Talk at Georgia Tech is Just 2 Days Away
We're still curious to see how malicious people (or trolls) in social control media will try to slant his talk as "bad"
The "Alicante Mafia" - Part VII - The Industrial Actions Began Yesterday, Here's Why
The "Alicante Mafia" might not last much longer
openai.com Traffic Said to Have Fallen 50% in the Past Three Months, Reports Say It Nearly Ran Out of Money to Borrow
After the slop frenzy all we'll have left is environmental destruction
 
Links 21/01/2026: "Snap Settles Lawsuit on Social Media Addiction" and Attempts in the US to Revive Software Patents
Links for the day
Links 21/01/2026: Microsoft 'Open' 'Hey Hi' in More Trouble, US Has "Brown Shirts" Problem
Links for the day
Yesterday Afternoon The Register MS Published Paid Microsoft SPAM Disguised as an Article About "AI PCs"
The Register MS cannot help itself, can it? [...] Follow the money.
Microsoft's XBox is in Effect Dead Already, Now It's a Streaming and Advertising Platform
Expect many layoffs soon
EPO's Web Site Misused for Propaganda About Illegal Kangaroo Courts to Distract From EPO Scandals and Judicial Crisis in Europe
UPC is illegal and unconstitutional
Gemini Links 21/01/2026: Edible Circuits and "Sayonara HTTP"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, January 20, 2026
IRC logs for Tuesday, January 20, 2026
IBM Hides Its Own Destruction (and Red Hat's)
It's like scenes out of '1984', which is what a now-famous advertisement from Apple compared IBM to
LLM Slop Not Dead Yet, Examples of Slop About "Linux"
We wish to see the totals down to zero
Links 20/01/2026: Cheeto Blackmails France Into 'Peace' While Looking to Annex EU, Mass Layoffs in Capgemini (Microsoft Reseller/Promoter) in France
Links for the day
Gemini Links 20/01/2026: Boxing and "Inbox Zero" Success
Links for the day
Windows and Slop Declining While Microsoft Silences Critics
Microsoft tries to suppress facts while faking 'demand' by imposing slop on everybody, everywhere
IBM Kills OzLabs, Signalling An Attack on Free Software (a Sign for Red Hat)
ibiblio also appears to have died (or experiences critical issues)
Red Hat Vice President Leaving After Nearly Two Decades
IBM's culture of secrecy is not compatible with Free software
Links 20/01/2026: "ChatGPT Health" (Latest Distraction From Being Insolvent) Flops and Raises Concerns, "The U.S. Military Faces a Reckoning on Greenland"
Links for the day
Rudeness and Vulgarity Won't Stop Journalism About Free Software
we seem to be on the right path
Readers Pleased With Layout Changes
Two days ago we began improving clarity and accessibility in the site
IBM Plans for Layoffs Becoming Clearer With "Employee Reviews"
Of course this impacts Red Hat as well
IBM is Outsourcing Red Hat's Fedora to Slop to 'Save Money'
If IBM cared about quality rather than alleged "cost savings" (cutting corners), it would assign more IBM staff to Fedora, but instead the exact opposite happened, with the likes of Cotton and Miller removed from the project
European Patent Office (EPO) Industrial Actions Formally Start in Two Hours
As per the latest (revised) action plan, today workers will slow down their work and limit patent grants
Microsoft Under Fresh Investigation by the Italian Competition Authority
In 2025 we kept a running tally of 30,000+ Microsoft layoffs, so 40k this year would not be unthinkable
The "Alicante Mafia" - Part VI - More Strikes Planned at the EPO, Starting This Month
Yesterday we said that friends of Berenguer or inside Berenguer's circle may have left
Gemini Links 20/01/2026: New Tea, Using a Roku at a Hotel, and "Voltage-Based Power Management for Any Raspberry Pi"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, January 19, 2026
IRC logs for Monday, January 19, 2026
If You Don't Want "Linux" to Become "Windows", Then Follow GNU
GAFAM isn't a friend of Linux; it's only a user in the same sense clients are "users" of a brothel
Links 19/01/2026: National Broadcasters on World or Local Affairs Up to a Week Ago
Links for the day
Gemini Links 19/01/2026: Game Boy and "The Lounge" (IRC) for the Elderly
Links for the day
Slopfarms in Google News (at Least Three Today) With Fake 'Articles' About "Linux"
Google itself is trying to promote its own slop ("Overview") at the expense of original and credible sources
Links 19/01/2026: ChatGPT’s Defects and The Guardian on Why So-called "AI Companies Will Fail"
Links for the day
This is What the Slop Bubble Popping Can Look Like
Maybe not an overnight collapse, but getting there gradually
IBM Quiet About Its Plan for Red Hat Amid Accelerated Bluewashing
Something is going on at Red Hat
The "Alicante Mafia" - Part V - It Seems Like Some People Are Already Leaving "The Mafia"
they have a rough idea of what's coming
Microsoft Means War, Microsoft is on the Side of ICE
Microsoft, people-ready
More Confirmatory Rumours Regarding "Massive" Red Hat Layoffs
Ecosystem and sales said to be targeted
Proprietary UNIX is What We'll Have If IBM Red Hat Gets Its Way
IBM Red Hat wants to control everything, even if that means killing everybody
Free Software in Times of Peace (and Times of War, Too)
GAFAM and IBM are war companies
Founder of GNU/Linux (RMS) Speaks in US University (College) This Week
The auditorium has very high capacity and this is his "college comeback" talk in the United States
Office Meetings Are Most Useful to the Least Productive Workers
In my "office life" days I really didn't like meetings
LinuxSecurity and Linuxiac Are Still Slopfarms, Even Anthony Pell Does It
We suppose waiting another month or another year won't change a thing
Claim That the Board of Directors at IBM Isn't Happy With How the Company is Run
IBM tries to project an image of strength to the whole world, especially to its clients
Links 18/01/2026: Legal Trouble for xAI, Climate Concerns, Data Breaches and More
Links for the day
'Vibe Coding', Chatbots, and Other Bots (e.g. "Agents" Disguised as "Superintelligence") Aren't Saving You Time
False marketing, FOMO marketing tactics
Gemini Links 19/01/2026: Analog Cameras and Plucker in 2026, US Losing Acceptability in Europe
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, January 18, 2026
IRC logs for Sunday, January 18, 2026