Barnes & Nobles Faceoff With Microsoft over Patents Issue

In case you are a hardware manufacturer with the Android OS in it, you will soon be contacted by Microsoft. It seems Microsoft for quite some time has been pursuing a model of generating revenue via licensing fees from Android device manufacturers.

Microsoft already has licensing agreements in place with larger players like Samsung and HTC. They are also in talks with Huawei, and a licensing agreement between the two is expected soon as well.

Though, Barnes & Nobles seems to have taken a slightly different stance upon being contacted by Microsoft for the same and have taken up the matter with the Justice Department, sending them a letter on the same. B&N have alleged that Microsoft is trying to drive out the competition by levying heavy licensing fees on Android manufacturers and thereby induce monopoly in the market.

The letter also states that Microsoft is demanding royalties for only outdated design features and have not all proved how their e-readers, the Nook and Nook Color infringe upon any Microsoft patents. They also allege that Microsoft is hindering creativity and innovation by charging such exorbitant licensing fees.

Well the accusation by B&N holds some substance, for the fact that Microsoft generates almost three times revenue by charging royalties to Android manufacturers than what they make by from their own Windows Phone OS.

Seems like, we are up for an interesting patent battle with the case scheduled for hearing in February 2012.

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