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I read here that Microsoft is cashing Android handset ODMs for some patents that are allegedly used in their Android handsets. Why is Microsoft able to do that? Is this a HW or SW-based problem?

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    I'm voting to close this question as off-topic because as per help center legal questions, such as "Will X void my warranty?" are off-topic.
    – Firelord
    Nov 2 '15 at 7:21
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The list includes 73 standard-essential patents, but there’s also 127 patents that Microsoft claims are implemented in Android. Some on the list, as Ars Technica notes, include patents that Microsoft acquired as part of the Rockstar Consortium to bid on patents from Nortel. ... Microsoft is estimated to earn as much as $1 billion a year from Android-related licensing revenue.

ref : http://www.theverge.com/2014/6/16/5813710/microsoft-android-patents-list

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Yes. Microsoft takes a small amount of revenue on OEM's device it has reached an agreement with. This includes Samsung, LG, Sony, etc. They are able to do it because they hold key patents to some of the methods most smartphones use to function. This includes patents related to interaction with user and network operations. Licensing fees for different OEM is different and not all device violate same patents. so it is both a software and a hardware problem.

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