06.19.15
It’s Official: Microsoft Turned Nokia Into Patent Aggressor Against Android/Linux for Royalty Stacking
Microsoft uses patent/royalty stacking strategy to abuse and game the market
Summary: Nokia is now gunning down or picking on Linux-centric (and/or Android-focused) companies, extracting patent tax from at least some of them after Microsoft left this dead company with many of its patents, scattering the rest to strategic (Microsoft-leaning) patent trolls
WE ARE truly troubled to have just found out that Nokia, which was destroyed by Microsoft’s Elop (now outside of Microsoft again), is officially extracting money from LG. LG uses only Android for its phones (WebOS for other products and this too is Linux-powered) and since Nokia is Microsoft’s proxy and LG already pays Microsoft, this is a bit like double-dipping; this is patent stacking (the official term for this practice is sometimes “royalty stacking”, as this paper from Mark Lemley explains). According to CBS, “Nokia Technologies and LG have agreed to a smartphone patent licensing agreement, the companies announced on Tuesday. Under the terms of the deal, LG will pay royalties to Nokia for use of its patents on mobile communications.”
“Microsoft is quickly becoming more and more like patent troll and its sidekick, Nokia, sure works hard to ensure that Microsoft’s rivals cannot get a breath of fresh air.”So it’s not so much of a deal. It is hardly mutual because it’s LG which is said to be paying Nokia, the company which was already warned by European officials about becoming a troll like this (after Microsoft practically took over). Microsoft is now an almost non-practising firm, just a troll, directly and by proxy, attacking Android from many directions in an effort to increase its cost. According to this one new roundup of articles (relating to Nokia and Microsoft) “Microsoft Lumia phones are DEAD”, leaving Microsoft and Nokia in more of a “patent troll” status (but big trolls, not the stigma thereof). They hardly have any market share, but they sure attack the market’s winners.
To quote IDG: “Microsoft CEO Satya Nadella’s reorganization of the company is causing some serious head-scratching. Commentators — including this Humble Blogwatcher — are reaching the inescapable conclusion that the ex-Nokia Lumia business is dead (or, at least, mortally wounded).
“Redmond certainly seems to be sidelining the perpetually loss-making Windows phone devices group. And the departure of two notable scapegoats seems to confirm the view: Yes, Stephen Elop is out, along with one of his trusted lieutenants, Jo Harlow. Do you hear echoes of the KIN débâcle?”
Microsoft is quickly becoming more and more like patent troll and its sidekick, Nokia, sure works hard to ensure that Microsoft’s rivals cannot get a breath of fresh air. Free and fair competition is apparently not an option because Microsoft cannot cope with real competition. If “Microsoft loves Linux”, then it’s equally reasonable to say that I love Microsoft. █
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