Google Android phone on display at the Google conference in San Francisco, Thursday, May 20, 2010. (AP Photo/Paul Sakuma)
Microsoft will make $444 million a year fom Android, or about $3 to $5 an Android device, for using its patents, a report said Thursday.
Business Insider reported that an analyst from Goldman Sachs crunched the numbers in a note to investors. However, while $444 million seems high, it's only a fraction of Microsoft's estimated 2012 $75 billion revenue.
Google chairman Eric Schmidt told CNBC that the company bought Motorola in an effort to stop paying out for tech patents, but that is on hold while the tech giant is the focus of a Federal Trade Commission probe on its newest acquisition. From the Google Public Policy Blog:
We know that close scrutiny is part of the process and we've been talking to the U.S. Department of Justice over the past few weeks. Today we received what is called a "second request," which means that the DOJ is asking for more information so that they can continue to review the deal. (This is pretty routine; we’ve gotten these kind of requests before.) . . .While this means we won't be closing right away, we're confident that the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes.
If Google gets the OK for the acquisition it will mean fewer payouts to rival companies. It may also help that Schmidt's former employer, President Barack Obama, just signed a patent reform bill into law.