As reported on DigiTimes, Microsoft is planning to entail royalty fees on Taiwan-based vendors of Android handsets for using its patents in e-mail, multimedia and other functions with Acer and Asustek Computer so as to prevent these two vendors from adopting Android and Chrome OS for their netbook and tablet PCs, according to Taiwan-based makers.
According to the sources, there are several Taiwan-based handset vendors of which only HTC has undergone agreement and had got legal license to use Microsoft patents keeping aside Acer and Asustek as being the targets for the royalty charge. Acer’s and Asustek’s handset shipments are in very small volumes, so the reason behind Microsoft planning to impose royalty charge is not an issue of collecting revenues. But it’s all because Microsoft wants Acer and Asustek to stick with Windows. Microsoft is not only targeting Acer and Asustek but indirectly it is a message to rest of the netbook manufacturers to stick with Windows and sidestep Android and Google Chrome OS on netbooks and tablet PC’s.
Android vendors pay a small amount of US $10-15 per handset to Microsoft for apprehensive use of its patent as royalty fees. The reason behind such a low fees might be because Android is an open platform. However since the royalty fees have not been sternly imposed to the Taiwan-based vendors, they will definitely go for taking up the Android as it will significantly cut-down cost in relevant to using Windows Mobile, sources said.
Might be Microsoft is hoping that the threat of significantly increasing the patent licensing fees will lower-down the price gain of Android and other platforms, which in turn will make its Windows 7 come in sight as less costlier in comparison to the other open-source alternatives.
Netbooks are usually cheap and has got fewer features as compared to laptops and desktops, so every end should be taken care off in order to maintain its price. It can’t be compared with laptops or desktops in regards to features because where the features increase there may be probability of price getting increased. So Netbook manufacturers will always go for the cheaper side where they can indulge more features at a minimal cost. This is what the Netbook manufacturers was, in and will always look for. Similar case is that with Acer and Asustek. They want their consumer to give more features without escalating the price. So if they go for Microsoft then obviously they will not be able to go with the same price. Either they have to increase the price or might they will have to go with less profit. So they have chosen the one which is less costly. Likewise other company too will follow the similar path. So as to give an end to this type of complexities, Microsoft finally planned to impose royalty fees to prevent Acer, Asustek from using Android in netbooks, outcome of which will be like other manufacturers will not follow the similar path. This is all, what Microsoft wants.