Microsoft already has licensing agreements with HTC, Samsung, Acer, and with the addition of LG, the Redmond giant now covers 70% of all Android devices sold in the US. In the past, HTC has been rumoured to pay $5 per Android device to Microsoft in royalties. Many reported that in 2011, Microsoft made more money by collecting royalties than actually selling windows phones. Well, this is what happens when you have a strong patent portfolio. On January 12, 2012, LG has also signed an agreement with Microsoft for Android devices and Chrome OS devices. The exact details of the agreement are not known for obvious reasons.
“Microsoft Corp. and LG Electronics have signed a patent agreement that provides broad coverage under Microsoft’s patent portfolio for LG’s tablets, mobile phones and other consumer devices running the Android or Chrome OS Platform.”
New rumours suggest that Microsoft is also going after Pantech, which is the third biggest phone manufacturer in Korea after Samsung and LG. It will be interesting to see how the windows phone sales compare to royalties collected from Android phone sales. Microsoft might be actually start rooting for more Android sales if windows phone doesn’t go as planned.