Microsoft (MS) has offered to cut annual patent fees for Samsung and LG Electronics, sources said Monday. "MS approached Samsung and LG Electronics to provide them with sizable discounts to the licensing fees in an attempt to sell more of its cloud computing and software products," a source said.
"MS also has a competitive Google Android patent portfolio. MS is trying to crack down on Google's dominance by promoting its software to be used in companies and consumers to leading smartphone manufacturers. MS exactly knows what its clients want and I believe this company is really smart," said another source.
In the case of Samsung, the world's biggest smartphone vendor decided to install MS's office programs such as OneDrive on its Galaxy S6 and S6 Edge devices. Both of them are powered by the Google Android system.
Samsung said it paid about 1 trillion won to MS for patent fees in 2013. Samsung paid between $2.6 and $2.7 to MS for fees on every Samsung tablet and smartphone that are sold.