Samsung and Google fear higher patent fees; raise concerns with Chinese courts about Microsoft's Nokia purchase

Galaxy S5

Google and Samsung have joined Chinese mobile phone manufacturers in expressing concerns to Chinese courts about Microsoft's purchase of Nokia. Redmond is set to absorb Nokia's phone business for 7.2 billion dollars, integrating the division responsible for Lumia, Asha and X device families. The reasons behind this move are fears that the deal will result in higher patent licensing costs.

According to a Bloomberg report, the two parties, alongside Chinese counterparts, are concerned Microsoft will gain the upper hand in the smartphone market and will abuse acquired patents. ZTE and Huawei are two Chinese companies who have urged region regulators to set conditions and restrictions on the deal. While Microsoft is indeed looking to purchase Nokia's hardware division, HERE services will be left in Finland with NSN.

The EU has already approved the deal between Nokia and Microsoft, but it'll be interesting to see if the Chinese Ministry of Commerce will demand guarantees that the agreement doesn't result in higher patent fees for other companies. A twist to the story is ZTE, Huawei and Samsung already make hardware running the Windows Phone OS.

Microsoft is also attempting to woo other Android manufacturers by relaxing some of the requirements that make Windows Phones unique.

Source: Bloomberg


Reader comments

Samsung and Google fear higher patent fees; raise concerns with Chinese courts about Microsoft's Nokia purchase


Although things don't work that way in the corporate world, just imagine Microsoft literally pushing Google to provide support for Windows Phone devices in return

Its win-win.. Android can take over the world, and MS is laughing all the way to the bank with the royalties.

Eating only the scraps your more successful competitors leave you is nothing to laugh about. If, as a tech company, MS is happy extracting only 1% of the profits from the currently largest consumer tech market, they deserve to go out of business. Google earns more with their app store alone.

Here is what Nokia says: What patents is Microsoft acquiring from us? They are licensing them. So that doesn't make sense.

But it was totally cool for Google to buy Motorola they didn't have any patents that google is taking advantage of.

Honestly I would love to see the deal go down in flames. I just do not see an upside here for MS. Foxxcon will build a Surface phone.

The Here services that are not included are all MS really needs and they can license those.

So what would happen if Nokia was free to dump WP and only make android phones? Do you have any doubts that at least half (probably more) of WP users are here because of Nokia?

I think that MS has the experience with Chinese manufacturing to move forward with their own phones. Look at the Surface. Its well designed and manufactured. Nokia's tablet is not in the same class and their cover / keyboard for it is a mess. Bo design chops used on that thing!

One of the biggest things Microsoft is gaining here is Nokia's manufacturing expertise. Nokia has been making hardware for decades where Microsoft has been since the original Xbox (I don't think Keyboards and Mice count). The experience gained from Nokia could help their entire product line from Xbox to Surface to whatever phones they release.

We would all watch as Nokia sunk like the plane crash in bioshock. Then another company would go for it. Nokia needs outside support, but it lives on through MS.

Hopefully this Foxconn surface phone comes into fruition, I'd take a Surface phone over a Lumia any day tbh.

Me too, but Daniel said from what he's been hearing, it probably wont happen. By the way, F*ck'em....Stitches B*tches!

Me too. Will get MS designed phone in the vein of Surface any time. Lumia 'design language' is pathetic: heavy, chunky, massive bezel, plastic unibody.
Results? Barely 5% market share after years of massive investments. Real shame because WP is great OS deserves much more than that. Nokia step aside.

Haha so you want Samsung to be the company that holds the most market share? Nokia has premium products in terms of it's quality, yes they may look bad, but I think everyone would prefer any company over Samsung in terms of quality of their products.

You sir, are out of your mind, my 1520 is gorgeous...Nokia has award winning design...as for the bezel...it's the result of Windows phone hardware requirements...all Windows phones have a 'massive bezel' due to hardware capacitive buttons as a requirement...it is not unique to just Nokia!

The upside is that the Lumia brand represents 90% of the WP market, increased sales YoY by over 100% to 30M, is the only WP brand with name recognition. Also the last phone MS developed internally was the Kin phone. The Lumia phones are arguably the most innovative in the industry.



Nokia has a hardware team with global awareness and expertise. They have retail staff and operator relationships across the entire globe. These things would take years for MS to build on their own if ever.


I sue
You sue
He she it sue
We sue
You sue
They sue
I am tired of this crap
Tech is stucked in patent strikes against each other

You have to take the bad with the good. Without patents, you'd have companies ripping off other companies even more.

American MSFT vs Chinese manufacturers on Chinese court = Chinese Manufacturers Auto Wins. Patents in China is the hell itself.

Apple probably couldn't care less. They still sell more iPhones in a month than Nokia sells Lumias in a year. And since the likely thing to happen is for Lumias to decrease sales the moment the Nokia brand is gone...I highly doubt Apple is concerned.

Yea but I still respect Apple somewhat, mainly because Microsoft and Apple trade pattents almost freely with very rarely any problems since the late 90's... bounce back, pinch to zoom and multi touch are a few in the last few years that Apple attacked everyone for and yet WP had them and never got mentioned and still has bounce while everyone else has had to change... Apple will always get a great price on pattents under Microsofts control and vice versa...

That is not what's going on at all. Apple and Microsoft have a cross licensing deal. They can both use each others patents without much problems.


I don't know what you are blabbering about. Nokia is unquestionably the father of wireless. They developed many of the technologies that made modern wireless service possible. The fact that they were slow to react to touch based smartphones is a completely different issue. Even if Nokia disappears from teh world, they will still be the father of wireless.


He said father. Does father really affiliated with being the king to you? And yes, Nokia is father of mobiles. Unless you didn't count the first generation of cellular phones as mobile phones.
Btw, what with all those caps? Are you mad or your keyboard broken? (-_-)a

There is one problem with this fear...Nokia will retain ALL the patents. Microsoft will not get their hands on a single Nokia patent. So at best, they could fear that Nokia would license the patents at a cheaper price to Microsoft l. But then China wouldn't be the first one to fall upon that behaviour. The EU would as it is a prohibited market behaviour.

Microsoft does get around 8500 patents in the deal, mostly for design and others related to the devices division. However, the majority of the patents (30,000+) do stay with Nokia and part of the signed deal includes a ten year license to those.

I suspect Google doesn't actually care that much about those patents and is mostly doing this to cause trouble and try to keep Microsoft's phone business down. It's a small percentage of the market now, but it will only continue to grow and take some of Android's share. Seems like a dick preventive move on Google's part.


I thought majority of the patents were being kept by Nokia. Side note it seem google is learning how to play the game. This could be a big blow to MS if the purchase is delayed or blocked some how.

So, a company that owns up to 80% of the smartphone market (depending on who you ask) by leaching off the hardware work of partner companies while not actually taking any risk themselves is worried about unfair competition by a duo of companies that have, at best, 6% of the smartphone market?


Well Microsoft collects patent fees from over 60% of android handsets sold and I'm thinking Google doesn't want to let them have any more

While this is true they still are big enough that they don't really need to care because there are limits to how high microkia can hike the licensing fees. It's competition that Scroog.... Ahem I mean Google doesn't want.

Except thos are Microsoft patents and have absolutely nothing to do with the merger. Plus Microsoft isn't getting any technology patents in the deal. Nokia keeps all of those and Microsoft will license them.

What a load of bull shit. They WP is to small so no Youtube app but now they are scared of WP growth .

Do u know google had bribed Indian govt for not banking Android. The govt was banning android here as its not safe and had adult apps.

Nokia Is selling there phone division and multiple patents. Microsoft is not going to shell out billions just for a device itself. Google spent billions on Motorola mainly for patents and then resold the phone to Lenovo with patent leasing

Microsoft is not getting any patent from Nokia.. Just the licencing of them for 10 years.. So all of this fuzz in China is because Nokia owns a big share of the patents necessary to all phone manufacturers..

That's not exactly true. Microsoft will get around 8500 patents related to design and aspects of the phone division. The other 30,000+ related to the technology, infrastructure, etc remain with Nokia and are licensed to MS for ten years as part of the deal.

Look how google stopped Microsoft making the YouTube App. I bet they wished they had treated Microsoft better now. Lol

Microsoft should prevent Samsung from being a manufacturer for windows phone. I mean really, Samsung getting in bed with google is sickening.

Yeah but they also makes laptops and other products that uses MS software. Would just be a stupid move since Samsung is a well known company. Hate them tough.

I said long ago it was Google that was afraid of Windows Phone. Here sit Samsung and Google with nearly 80% of the smartphone market crying they are victims. Rich, ain't it. iPhone has a captive % of the market with tremendously loyal customers. Not likely to go anywhere. It is the soft underbelly of Android that Windows Phone will be picking away at.

Chinese manufacturers will just disregard the patents anyways and the courts will just turn the other cheek and judge in their favor anyways so I dont see how this matters.

They can't ignore import bans won in Austrailian, European, Canadian, Japanese & US courts on those patents. There is a reason HTC caved. Locals like Xiaomi & coolpad are one thing, but global phone sellers like Lenovo, ZTE & Huawei have to pay up or get banned in other more patent friendly jurisdictions.

Thanks google, thanks Samsung, maybe if deal never happens we can keep our Finnish brand in here Finland.

I don't get it. Microsoft are licensing the patents. They did not aquire them. This will get nowhere.

Screw Google they won't even let us have any of their services but one, and that's search. Are they wrong for that. Yep! So Google can kick rocks!

Google has been scared of Windows Phone since the beginning, that's also the reason why there are no Google apps on Windows Phone.

Wasn't there an article that said Windows licensing is going down like 70% for more adoption? I could've sworn I saw that earlier.....making this claim null and void in my eyes...

I think they're referring to patents that Android uses on their Smartphones. MS makes money on every Android phone sold.

That article is probably in reference to WP, W8 stuff.

I guess all these "fees" are really screwing with Google's "we sell your personal info" free Android model.

Fuck both Google and Samsung. Greedy ass sons of bitches. Who stopped google when they wanted to get patents from Motorola? Scroogle

GOOGLE, of all companies, is "concerned" about the potential negative impact of a different tech company acquiring other tech companies? That's just *precious*!

"The reasons behind this move are fears that the deal will result in higher patent licensing costs."

The real reason is that Google and Samsung are shitting themselves with worry that WP will destroy their smartphone marketshare.


Correct me if I'm wrong, but doesn't Android iteself rely on several patents that MS already owns?  So in theory once those licensing agreements are up, MS could kill Android if it so wanted.