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Amazon launches YouTube-like ‘Video Direct’ service for content creators

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Amazon today announced Amazon Video Direct, a new service that will see it go head to head with YouTube as it allows independent content creators to upload content and get paid.

The service is similar to Amazon’s model with Kindle Direct Publishing for e-books, allowing independent content creators to upload their own content for consumption by users alongside Amazon’s other video content.

And creators will get to choose how they are paid, either from advertising and royalties based on the popularity of the content, or by making videos available to buy or rent through Amazon. Creators will also have the option of making the content available to all Amazon customers under the ad-supported model, or to collect royalties by making it available just to Prime subscribers or in a Prime video add-on subscription.

Amazon also has a fund for creators that will see it hand out a million dollars per month to the 100 top titles, a little bit of incentive for content creators:


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Motorola may go after other Android handset manufacturers for royalties

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So the war continues… Motorola has been around for quite a long time, so it’s no secret they have a pretty big patent portfolio. During a keynote at the Oppenhimer Technology & Commmunications conference Motorola’s CEO Sanjay Jha had this to say regarding their pool of patents:

I would bring up IP as a very important for differentiation (among Android vendors). We have a very large IP portfolio, and I think in the long term, as things settle down, you will see a meaningful difference in positions of many different Android players. Both, in terms of avoidance of royalties, as well as potentially being able to collect royalties. And that will make a big difference to people who have very strong IP positions.

To sum it up Jha and company may plan to collect royalties from other Android handset manufacturers like HTC, Samsung, etc.

Houston, we have a problem.

(TechCrunch, via Unwired View)

Microsoft seeking royalties from Samsung potentially worth $200 million a year on Galaxy S smartphone alone

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It’s interesting how Microsoft is becoming an intellectual property vendor these days. This is all thanks to Google’s Linux-based Android operating system which incorporate Microsoft’s many patents, allowing the Redmond firm to seek royalties from handset vendors. Microsoft first forced HTC to pony up five bucks in royalties per each handset sold. The revelation has prompted pundits to note that the HTC deal earns Microsoft more money then licensing fees collected from Windows Phone partners.

Microsoft has signed a similar pact with General Dynamics Itronix and their licensing division took cash from component maker Wistron Corp., in addition to Android backers Veloicty Micro and Onkyo Corp. And now, we learn that Microsoft’s legal rottweilers are after Samsung, the leading Android handset maker, reports Reuters based on local media. Note that Microsoft already has licensing agreements in place with Samsung and LG.

Microsoft Corp has demanded that Samsung Electronics Co Ltd pay $15 for each smartphone handset it makes based on Google Inc’s Android operating system as the software giant has a wide range of patents used in the mobile platform, local media reported on Wednesday. Samsung would likely seek to lower the payment to about $10 in exchange for a deeper alliance with Microsoft for the U.S. company’s Windows platform, the Maeil Business Newspaper quoted unnamed industry officials as saying.

Let’s put it this way: Microsoft is set to make $30 million in Galaxy S 2 royalties alone based on sales of three million Galaxy S II smartphones. That’s a run-rate of twenty million handsets a year, meaning the Samsung deal could be potentially worth a cool $200 million in annual licensing fees on the Galaxy S II smartphone alone. And what happens if an Android vendor does not sign with Microsoft for patent protection?


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Another Android backer signs with Microsoft for patent protection

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A month ago we learned that Microsoft signed a patent-protection pact with Android handset maker HTC, with the Windows maker taking an estimated five bucks in royalties for every Android handset HTC makes. Some even calculated that Microsoft makes more money from Android than Windows Phone 7 licenses. Today, Microsoft confirms that it has talked another Android backer,  General Dynamics Itronix (GDI), into signing a patent-protection deal.

The agreement “provides broad coverage” for GDI’s Android devices and Microsoft confirmed it will receive royalties from the company. GDI is the maker of rugged mobile computing devices and even though they’re irrelevant in the smartphone space, first-tier handset vendors like Motorola and Samsung could find it increasingly difficult not to pay royalties to the Redmond giant. Apple could indirectly benefit as well…

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Citi: Microsoft takes $5 in royalties for every Android device HTC makes

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A report from Citi analyst Walter Pritchard made headlines this morning with claims that HTC agreed to paying five bucks per every Android handset sold. The basis for this is Microsoft’s patent settlement with the Taiwanese handset maker over intellectual property infringement, the analyst has found out. The fact that HTC makes Windows Phones obviously didn’t help dodge that patent hit.

Microsoft’s boss Steve Ballmer argued last October that Android wasn’t free just because it’s open-sourced. Some watchers are calling the Android platform a patent bomb waiting to explode. HTC is also being sued by Apple over alleged breach of iPhone patents and Oracle is suing Google over use of Java in Android. Pritchard warns other Android vendors can expect to pay royalties to Microsoft between $7.50 to $12.50 per device, which is troubling and here’s why.


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