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Microsoft Extracts Royalties from Linux User

As far as is known this is the first time anybody will be paying Microsoft for using Linux on their servers

Ahead of making a clean sweep of the Android device makers, Microsoft this week changed tack and nailed Dublin-based Amdocs Software Systems Ltd, the software contracting side of giant Amdoc Ltd, which supplies billing and CRM widgetry to big telecom carriers, for royalties on its Linux claims.

As far as is known this is the first time anybody will be paying Microsoft for using Linux on their servers, a worrisome novelty for the Linux crowd.

Microsoft is also getting IP rights out of the deal since it's a patent cross-license that it says "provides mutual access to each company's patent portfolio, including a license under Microsoft's patent portfolio covering Amdocs' use of Linux-based servers in its data centers."

Microsoft made it clear it would be on the receiving end of the check.

Linux defenders refuse to recognize that Microsoft has any IP rights invested in Linux and prefer to couch the latest development as simply the cost of doing business with Redmond or claim it's really about other rights.

Microsoft in January said it's getting paid for 70% of all Android phone sold in the US.

Goldman estimated that Microsoft would make $44 million this year from Android licenses. It thinks Microsoft is seeing $3-$6 per dingus.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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