Velocity Micro next pushed into Microsoft deal

Velocity Micro on Wednesday was the second in as many days to be pushed into signing a patent deal with Microsoft over Android. The deal will see royalties paid on every Cruz tablet sold. Company chief Randy Copeland spun the loss by arguing that it would help lead to "exciting new Cruz tablets" later on.

The deal immediately follows one with General Dynamics and shows Microsoft now turning most of its attention to smaller Android device makers located inside the US. Most of its early focus on royalty collection was on larger phone designers like HTC.

Microsoft believes it owns technology inherent to Android. Most, however, see the company as simply trying to give Android an arbitrary price and encourage companies to pay for Windows Phone 7 instead. Frequently, Microsoft either waives or reduces royalties for those making Windows Phone hardware but charges very high amounts for those that are only depending on Google's OS.

By Electronista Staff