WEBVTT

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 Trying to solve the mobile phone problem for Microsoft was the

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 biggest problem, right?

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 We had a Windows Mobile operating system, which we were making,

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 you know, $10 a device for years on.

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 And then all of a sudden, you know, Apple showed up with the

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 iPhone,

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 and then Google showed up with Android, and Android was free.

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 And our whole business model was being questioned.

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 And our software play was our operating system.

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 And again, being undercut by a free Android operating system.

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 And the first thing I did was say, hey, look, why don't we go

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 charge a patent license fee

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 for all the Android, because they're free.

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 And like, how much can we get?

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 And I'm like, let's charge everyone $7 a phone.

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 And people are like, where did that number come from?

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 I'm like, the number came from because someone wants to charge

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 me $7 a DVR box.

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 And so I picked the $7.

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 And it turned into this huge program for Microsoft.

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 That's how damages work.