The mobile phone wars became more interesting late on Tuesday when Microsoft publicly claimed for the first time that Google's Android operating system infringes on its intellectual property.
According to sources close to the company, Microsoft believes that Android infringes on its patented technology. This infringement spans areas from the user interface to the underlying operating system.
In a statement to CNET, Microsoft's deputy general counsel, Horacio Gutierrez, said that while Microsoft prefers to resolve intellectual property licensing issues without lawsuits, it must ensure that "competitors do not free ride on our innovations."
Gutierrez's comments came as Microsoft and HTC announced a new patent deal. This agreement specifically allows the Taiwanese cell phone maker to use Microsoft's patented technologies in phones running Google's Android operating system. Microsoft mentioned ongoing discussions with other phone manufacturers.
"We have consistently taken a proactive approach to licensing to resolve IP infringement by other companies and have been talking with several device manufacturers to address our concerns relative to the Android mobile platform," Gutierrez added.
Although the financial terms of the Microsoft-HTC agreement were not disclosed, it was noted that "Microsoft will receive royalties from HTC." This deal covers all Android-based phones made by HTC, including the Nexus One, which Google sells directly.
"HTC and Microsoft have a long history of technical and commercial collaboration, and today's agreement is an example of how industry leaders can reach commercial arrangements that address intellectual property," Gutierrez stated in a press release announcing the deal. "We are pleased to continue our collaboration with HTC."
For years, Microsoft has claimed that Linux-based products infringe on its patents and has sought licensing deals with companies making devices based on the open-source operating system. The company has signed numerous such deals, but this is the first one covering Android.
Android is based on Linux but also includes other mobile-specific interfaces and programs that might be among the areas where Microsoft sees infringement. Microsoft declined to comment on the specific areas of infringement by Android.
This pact comes as the patent battle in the cell phone space has intensified. Last month, Apple announced it was suing HTC for patent infringement. HTC is in an interesting position, being a leading maker of both Windows Mobile and Android-based devices.
Apple's suit mentions HTC's Android and Windows Mobile phones, though some observers believe Android is the primary focus of the suit.
"Google is really unable to protect HTC because they don't have any portfolio of patents in this area," said Gartner analyst Ken Dulaney. In contrast, Microsoft has a broad portfolio and a patent cross-licensing deal with Apple that likely covers HTC's use of Windows Mobile, though perhaps not other technologies HTC has implemented in its Windows Mobile-based phones.
Dulaney suggested that Apple may have targeted HTC because it lacks a strong patent portfolio to counter Apple's claims. "Motorola could probably be a different story because they have more patents to bring to the table," he added.
It's unclear to what extent, if any, the Microsoft agreement will aid HTC in its battle against Apple. However, Dulaney emphasized that this is the key battle for HTC.
"If this doesn't help HTC against Apple in some way, frankly, I don't think they gain much," Dulaney concluded.
