Microsoft Scares Two More Android Makers Into Paying Up Over Patents

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Microsoft loves them some Android. Google’s mobile OS is turning into a major cash source as Microsoft convinces more Android OEM makers to hand over royalties concerning some of Microsoft’s patents. A recent report states that Microsoft has made five times more from Android than their own Windows Phone 7 — without building, supporting, or developing a single Android device.

Both Velocity Micro and General Dynamics just entered into such an agreement where both will pay an undisclosed royalty to Microsoft. HTC signed one of these patent-protection deals with Microsoft back in 2010 and reportedly pays Microsoft $5 for each handset it sells.

Velocity Micro is a Richmond, Virgina-based OEM that sells custom gaming PCs and Android tablets. Randy Copeland, CEO of Velocity Micro, Inc., said, “By entering into this agreement with Microsoft, Velocity Micro, Inc., will be able to better meet the needs of our customers with the introduction of exciting new Cruz tablets having increased performance and functionality.”

General Dynamic’s Itronix brand signed a similar deal on July 27th  concerning its line of rugged Android tablets.

Microsoft is targeting Android makers big and small over patents. HTC gave in where others like Motorola and Barnes & Noble have not. Those two companies are separately fighting Microsoft’s claims that the Droid X, Droid 2 and Nook infringe on Microsoft’s patents. Clearly the odds are in Microsoft’s favor as companies slowly follow suit and sign their profits away.