Microsoft is currently receiving royalties from almost all major Android tablet manufacturers including Samsung, Buffalo and HTC. You may remember that Barnes and Noble talked their way out of this deal when they turned their Nook spinoff into a Microsoft/Barnes and Noble joint venture. However, two lower end tablet makers who go by the name ‘Coby’ and ‘Aluratek’ have also been able to get by this for a little bit. Unfortunately for them, this all changed today when these companies were both added to Microsoft’s patent licensing list and must pay Microsoft a percentage of each tablet they sell. Microsoft is currently collecting these royalties from all Chrome OS and Android devices as they violate a publicly-unspecified patent. This makes the Android platform increasingly risky for startups looking to develop tablets of their own.
If you’re unaware, Coby is a low-end electronics company who is known for their very low-priced tablets. They also make economical HDTVs, CD Players and headphones. Aluratek also makes low-end Android devices such as tablets, netbooks and eReaders.