Microsoft: Ha, Ha, We Win with Android Royalties

Microsoft (NASDAQ:MSFT) is likely to have scored a coup with its agreement signed with Samsung (SSNLF.PK). The two companies will collaborate on developing and marketing Windows phones. More important, the agreement will entitle Microsoft to earn royalties from Samsung’s Android (NASDAQ:GOOG) sales. Those payments should be significant considering Samsung’s 19% share of the mobile phone market.

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The agreement enables the two companies to cross-license their patent portfolios thus improving the coverage of their products. “Microsoft (NASDAQ:MSFT) and Samsung see the opportunity for dramatic growth in Windows Phone, and we’re investing to make that a reality,” said Andy Lees, president, Windows Phone Division at Microsoft. “Microsoft believes in a model where all our partners can grow and profit based on our platform.”

The stock is trading at $26.14 today, up 1.83%. Shares are up 4.01% in one year. The stock’s trading range for the year is between $23.65 and $29.46.

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