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Microsoft facing Android patent competition probe

Nook

By Stewart Mitchell

Posted on 10 Nov 2011 at 09:28

Barnes & Noble has asked US antitrust regulators to investigate if Microsoft is abusing its position by demanding royalties from companies making kit running Android software.

The move was revealed in a letter from the book seller to competition regulators and comes in the wake of Microsoft taking legal action earlier this year over five patents that it claims were infringed in the Nook ebook reader.

“Microsoft is embarking on a campaign of asserting trivial and outmoded patents against manufacturers of Android devices,” Barnes & Noble said in a letter to Gene Kimmelman, the Justice Department’s chief counsel for competition policy, according to Bloomberg.

“Microsoft is attempting to raise its rivals’ costs in order to drive out competition and to deter innovation in mobile devices.”

Microsoft has laid claim to several patented inventions that are used in the Google-owned Android operating system, and has been taking royalty payments from other manufactuers, including Samsung and HTC.

“All modern operating systems include many patented technologies,” Microsoft said in a statement sent to Bloomberg.

“Microsoft has taken licenses to patents for Windows and we make our patents available on reasonable terms for other operating systems, like Android," it said. "We would be pleased to extend a license to Barnes & Noble.”

Barnes & Noble contends that the Microsoft and other big companies are buying up patents – as with the Novell patent swoop – in order to restrict competition.

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User comments

Funny...

That a retailer doesn't seem to understand the concept of patents and licensing.

Maybe customers could try walking out of the store without paying for books, after all, they are trivial and there are hundreds of years worth of prior art...

By big_D on 10 Nov 2011

Surely...

If the patents are, as B & N say, 'trivial and outmoded' then they would have no need to use them in a modern and competitive product from which they intend to derive income?

By Tomble2 on 10 Nov 2011

Really Funny

Maybe customers are looking forward to walking into a store and the only book is Merriam Websters dictionary (as they have sued all the other authors off the shelves claiming they own all the words). I hope they don't find out you and I have used some of them without a license.

By Toxmarz on 10 Nov 2011

Hilarious Toxmarz

"I have used some of them without a license."

Or you could invent some new words, as Google should have done with Android, instead of stealing other peoples work.

By chapelgarth on 10 Nov 2011

You say potato I say potata

According to Barnes & Noble \ Google:

“Microsoft is attempting to raise its rivals’ costs in order to drive out competition and to deter innovation in mobile devices.”

An alternative reading is that paying MS royalties actualy LEVELS the metaphorical 'playing field'. It does this by preventing Android makers from having an unfair competitive advantage gained through having a 'free' operating system based on technolgies that MS and others had to spend money on developing.

By wittgenfrog on 10 Nov 2011

Clarification (@big_D, Tomble2, chapelgarth, wittgenfrog)

The issue is not solely about patent rights but licencing costs and terms. B&N is saying that Microsoft is using these patents selectively (and thus anti-competitively) against individual suppliers, thus they want B&N to pay more than Samsung, HTC et al. Microsoft also insist that all licence deals are entered under non-disclosure so that no vendor can compare their deal with Microsoft with others to see if they are comparable and fair.

As an example of Microsoft's selective behaviour, almost every NAS device available runs linux and provides the FAT functionality that Microsoft is asserting against B&N but no NAS vendor has been forced to cross-licence these patents.

Ultimately the courts will decide but almost all the matters on which Microsoft is active are features of Linux and not features specific to Android, which contains a high level of original code provided by Google - almost all the fuctionality specific to mobile use is original rather than borrowed work.

By milliganp on 11 Nov 2011

Patents

Rights holders are continuously asserting that patents encourage innovation through protection. Is it not apparent to everyone that not only is this untrue, it is the polar opposite? I don't disagree that inventors should be compensated for their work, but wouldn't innovation be increased exponentially by mandatory, set-price licensing?

By dubiou on 12 Nov 2011

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