Microsoft Getting Fees on 50% of Android Devices

This week Nokia is set to reveal its first batch of Windows Phones. Unless they're remarkable it's unlikely that they will dramatically alter the positions of either Nokia or Microsoft. However Microsoft has built a powerful "insurance policy" on the back of Android's success: patent licensing. The company continues to line up licensing partners in the Android ecosystem.

Yesterday Microsoft announced yet another company had licensed its patent portfolio, Taiwan-based Compal. More significantly, Microsoft also said that with this deal "over half of all Android devices have now entered into patent license agreements with Microsoft."

Google has reported that 550,000 Android handsets are activated daily. If Microsoft makes an estimated $5 per handset from 53% of all Android devices now being activated would mean Redmond is poised to take in roughly $501 million from Android on an annualized basis. As Android sales increase that number will only go up.