Microsoft and Samsung Enter into Smartphone Partnership

Microsoft has entered into a definitive agreement with Samsung Electronics Co. Ltd., to cross-license the patent portfolios of each company. Basically, Microsoft and Samsung in non-legalese want to make sure their backsides are covered and protected. This is purely a strategic move to maintain a stronghold on the smartphone market.

Microsoft will receive royalties for Samsung's mobile phones and tablets running Google's Android mobile platform. Also, both companies have agreed to cooperate in the development of Windows Phone.

“Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality,” said Andy Lees, president, Windows Phone Division, Microsoft. “Microsoft believes in a model where all our partners can grow and profit based on our platform.”

Basically this whole deal comes down to ownership of patents which have been known to spark huge court battles. A popular belief in business circles has always been, "the man with the gold makes the rules," but today the phrase may better be spoken as, "He who owns the patents owns the world."

Samsung and Microsoft have entered in an agreement to cross-license their patent portfolios to stop potential patent infringement lawsuits and allow them to better be able to corner the smartphone market. Samsung and Microsoft will be working together going forward to ensure Windows Phone aka "Mango" is best positioned to compete against the likes of: Android, Apple and Blackberry.