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

'Cancel Culture' Doesn't Work (in the Long Run)
Despite all the attacks, I'm enjoying life, I'm keeping productive, and our audience continues to grow
GNU/Linux Still up (statCounter Says to 6%) in Bosnia And Herzegovina
Let's see where it is at year's end
Making Layout Changes
Feedback can be sent to us
Behind an Economy of Fake 'Worths' and Fictional 'Valuations' or 'Market Caps'
They normalise white-collar crime and say "everyone is doing it!"
Links 18/01/2026: "South Africa is Running Out of Software Developers", Companies Spooked to Find Slop is a Major Liability
Links for the day
Place Your Bets: Who Will Die First? Microsoft or IBM?
Not even joking; make a guess
 
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
'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
Links 18/01/2026: The "Deepfake Porn Site Formerly Known as Twitter" and Turkey to Block Kids' Access to Social Control Media
Links for the day
Gemini Links 18/01/2026: Against English as Language of the Net, "Symposium of Destruction"
Links for the day
You Would Expect This Kind of Misleading Narrative Shortly Before Microsoft (or GAFAM) Mass Layoffs
misleading PR
FOSDEM 2026: democracy panel, GNOME & Sonny Piers modern slavery experiment
Reprinted with permission from Daniel Pocock
Pump-and-Dump With IBM Shares, Courtesy of People Who Stand to Gain From the 'Pump'
"3 Reasons to Buy IBM Stock Right Now"
IBM: Spying on Staff Like Never Before and Implementing Silent Layoffs This Month, Say Insiders
what we heard from whistleblowers seems to corroborate
IBM is Not a Free Software Company (It Never Was)
Red Hat's main product, RHEL, is full of secret sauce and has 'secret recipes' (it is basically proprietary)
IBM Turning Up the 'RTO' (Stress) and 'PIP' (Fear) Heat on Workers, Rebellion May be Brewing
Sometimes it feels like today's executives at IBM view IBM workers as a liability
Links 18/01/2026: Indonesia Against Comedy, Media-Hostile (Censors Comedians) Convicted Felon in White House Defecting to Opponents of NATO
Links for the day
Eventually the Joke (and Financial Fraud) is on Microsoft, Stigmatised for Slop
Is Microsoft trying to commit suicide?
GNU/Linux Leaps to All-time Highs in Virgin Islands
it seems to have started around the "end of 10"
Making and Keeping the Sites Accessible
Sometimes less does mean "more" (or "MOAR")
The "Alicante Mafia" - Part IV - How Europe's Largest Patent Office Recruited Drug Addicts, Antisemites, and People Who Absolutely Cannot Do the Job (But Know the 'Right' People)
To better overlap industrial actions we might delay/postpone/pause this series for a bit
Restoring Professional Pride in the Tech Sector
Rejecting slop isn't being a Luddite
Benefiting by Adding Presence in Geminispace
As the Web gets worse, not limited to bloat as a factor, people seek alternatives
Google News Recently Started Syndicating Another Slopfarm, Linuxiac
Even if Google is aware that there is slop there, it's hard to believe that Google will mind
Slop Bubble "Is Worse Than The Dot Com Bubble"
Edward Zitron Says It like it is
Software Patents and USMCA (or NAFTA)
We recently pondered going back to issuing 2-3 articles per day about patents and common issues with them
IBM Sued Over PIPs
PIPs are "performance improvement plans"
Sites With "Linux" in Their Name That Are in Effect Slopfarms and Issue Fake Articles
We try to name some of the prolific culprits
Gemini Links 18/01/2026: Raising Notifications From Terminal and Environmental Sanity
Links for the day
IRC Proceedings: Saturday, January 17, 2026
IRC logs for Saturday, January 17, 2026
Over at Tux Machines...
GNU/Linux news for the past day
Links 17/01/2026: Internet Blackout Normalised, Russian Attacks Civilians by Causing Massive Blackouts
Links for the day
Microsoft Lunduke Keeps Distracting From the Real Problems With Rust
Microsoft Lunduke is stigmatising critics
Linuxiac Has Become a Slopfarm, Calling Them Out Isn't Fixing That
What a shame. A once-decent site about "Linux" bites the dust.
Luzern Lion Monument, Albanian Female Whistleblowers: Swiss jurists were cowards
Reprinted with permission from Daniel Pocock
The Splinternet is Already Here, Owing to the Militarisation of Technology (Slop, Social Control Media, Back Doors, and More)
you know what's gonna happen next...
Stack Ranking Against IBM/Red Hat Staff and a Signal of Mass Layoffs (RAs) Justified by Red Hat and IBM as Poor Performance/Misconduct/Other
Working in an atmosphere like this sounds like a nightmare
Gemini Links 17/01/2026: Slow computing and Environment Leak
Links for the day
Links 17/01/2026: US Censorship and Violence Crisis, Growing Anger Levels Against Slop Sold as "Intelligence"
Links for the day
Microsoft's "valuation depends on infrastructure that does not exist."
Indeed
The Typical Trajectory: Datamation Began Experimenting With LLM Slop for Fake Articles. Then Datamation Died. (Last Month)
It's always ending up this way
Accounts or Devices (e.g. Phones) That Get 'Burnt' Have Many Pitfalls
Embassies and consulates habitually fail at this
Avoiding the Spooks (Nobody Watches the Watchers, They're Practically Unaccountable)
If more people adopt encryption, it'll be easier for us to deal with whistleblowers
Protecting Whistleblowers Requires Technical Knowledge/Skills
even the highest media judges aren't aware of how to protect sources
At Least 5 Women Quit Brett Wilson LLP in Recent Months. It's the Firm That Attacked My Wife and I on Behalf of Americans (One of Them Strangled Women).
It seems like good news that the women escape this workplace
Slop About Slop and Slop About "Linux"
In short, avoid slopfarms
Report/Benchmark Says 'Vibe Coding' Results in Security Holes
There are risks they don't like talking about
EPO Abuses Covered in Spanish
Knowing what we know (and heard/saw), the sinister silence of the media is perceived by some to be complicity of the lower order.
Richard Stallman Encourages "ICE Out For Good" Protests, His Opponents Do Not (Passive and Uncaring About Human Rights)
He has done a lot philosophically, politically, and so on
Record Traffic in Geminispace or Over Gemini Protocol
it's never too late to join
The "Alicante Mafia" - Part III - Europe's Second-Largest Organisation on Strike, Protests, Other Industrial Actions to Come Impacting Over 95% of the Workforce
The EPO's management is highly evasive, weak, and vulnerable
Claim That IBM Marked 15% of its Workforce for Potential Layoffs
No wonder we keep hearing from Red Hat people who say they hate IBM
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, January 16, 2026
IRC logs for Friday, January 16, 2026