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Google: Microsoft's Samsung licensing deal is 'extortion'

updated 03:05 pm EDT, Wed September 28, 2011

Google says Microsoft-Samsung license bullying

Google in a statement accused Microsoft of effective bullying with its Samsung cross-licensing deal. Consistent with its message but more aggressive than usual, the Android creator likened the strategy to extortion. Because few customers were buying Windows Phones, Microsoft had decided to tax Android instead.

"This is the same tactic we've seen time and again from Microsoft," Google wrote. "Failing to succeed in the smartphone market, they are resorting to legal measures to extort profit from others' achievements and hinder the pace of innovation. We remain focused on building new technology and supporting Android partners."

Samsung is publicly supportive of the Microsoft deal, although it's well-known that the Galaxy S II designer had little choice. Microsoft is quick to sue any company if it contests the need to pay royalties and often counts on the fight and inherent risks being too costly to challenge the validity of its claims. Barnes & Noble, which can't use Windows at all on the Nook Color because of hardware demands and price, claimed Microsoft was charging impossible rates.

Microsoft was already known to be making much more from Android licensing than its own OS.

Arguments from Google have more recently been countered by Microsoft and others of its own unfair practices. Similar to what Microsoft was accused of doing with Internet Explorer in the 1990s, Google has been accused of price dumping, or the strategy of deliberately giving away or underpricing its product to squeeze out competitors. Google gives away Android for free and makes it back on revenue sharing for search ads.

The firm may have condemned itself when it mentioned likely using Sun's Java code without a license, suggesting that it had skimped on payment in the hopes that Sun, and later Oracle, wouldn't mind given the benefits to Java as a whole.



By Electronista Staff
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Comments

  1. Salty

    Professional Poster

    Joined: Jul 2005

    +20

    Bull

    This is Bull from Google, talking about building new technology when what they should be saying is that they're stealing technology from Apple. This is also ironic that Google complains of Samsung being charged unfairly when they're paying $5 a phone when Samsung wanted to charge Apple 2.5% of the iPhone's cost in certain countries to use basic wireless patents which were supposed to be licensed at the same rate to other companies (IE much less than 2.5%) Apple would be paying Samsung approximately $20 for every iPhone.

    I'm genuinely loosing respect for Google, they seem to be run by a bunch of people who wanna appeal to ideologues on the internet who are compensating for their acne and small genitals.

  1. kerryb

    Fresh-Faced Recruit

    Joined: Aug 2001

    +12

    Google for president

    This kind of double talk comes from politicians all the time. Is Google running for office. How can they say this stuff with a straight face, absolutely absurd. Google is the papered princess of the tech world.

  1. lamewing

    Dedicated MacNNer

    Joined: Aug 2004

    +11

    Done with Google

    I have had it with Google. I was an early adopter of Gmail and promoted Google to no end. Now they complain that MS is expecting profits for their patents. Is Google saying that they don't expect payment if someone used their IP? Riiiiight.

    The only thing Google I still use is Google Voice and Gmail. I can cut GV easily. I wonder what I will use instead of Gmail...? Any suggestions...other than yahoo or hotmail? GMX???

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +9

    Google is also saying the same

    thing about Apple. Bullying them with patents. Where there's smoke, there's probably fire. I don't understand why Apple doesn't have the power to get licensing fees from Google. Maybe Apple should hire some of Microsoft's lawyers. I'm surprised that a lot of older cellphone companies never complained about Google's price-dumping of Android OS. It would definitely seem to be an unfair tactic, but nobody really seemed to say anything about it and just got squeezed out.

  1. dliup

    Fresh-Faced Recruit

    Joined: Jan 2006

    +5

    @iphonerulez

    Microsoft just cares about money. Apple's goal is to creates great and unique products.

  1. Tjp

    Fresh-Faced Recruit

    Joined: Jan 2010

    +2

    Surprise, as in color me ...

    Why didn't Samsung just cross license their 3G patents to Microsoft??? Maybe they know they are on shaky ground with them ???

  1. facebook_Justin

    Via Facebook

    Joined: Sep 2011

    0

    comment title

    Shut the h*** up Crapgle. As bad as Microsoft is even WP7 is one h*** of a lot better then your "open" Android will ever be. Now get back to lying and pretending to be the greatest company on the planet but in reality is the exact opposite. You guys surpassed Microsoft in evil a LONG time ago.

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