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The Cost Of Patents

Why all the recent fuss about patents? Well, along with stifling innovation, patents can cost a company millions! Illustrating the point, Goldman Sachs' tech analyst team calculates that Samsung, HTC and other phone manufacturers will have to pay Microsoft about $444 million in Android patent deals for fiscal year 2012 (from July 1, 2011, through June 30, 2012). "Goldman estimates that Microsoft is getting $3-$6 per Android device sold," Business Insider reports. "With settlements from Samsung, HTC and others, Goldman arrives at its estimate."

In this scenario, however, not even Microsoft is a winner, Business Insider insists. "Sounds good for Microsoft, but really, it's an empty victory," it writes, noting that Microsoft's revenue for fiscal 2012 is estimated to be $75 billion. "So, the money it gets from Android is almost nothing, especially when you consider the incredible damage Android is doing to Microsoft's dominance as a computing platform."

Read the whole story at Business Insider »

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