The only thing I could find is HTC supposedly pays them $5 in licensing fees per phone.

I read it asked Samsung up to $15 per phone, but I don't know how much they did settle on. So it looks like MS too asks for quite consiistent sums, if every patent holder asked for similar amounts, a smartphone should cost thousands dollars just to pay royalties. And this is where the system is totally fucked up, smaller companies with little bargaining power can be crushed and put out of business through patent lawsuits.

There are a few differences.  Microsoft's patents are not standards.  The contentious patents in Motorola's case are standards and are meant to be licensed under FRAND terms.  Microsoft has been licensing 50+ patents per unit, it's a patents package.  Motorola is talking about 2 patents, which should have been licensed under FRAND terms.  Microsoft's fee is a flat rate per device, regardless of the cost increase in the phone for any other reasons.  Motorola is levying a flat rate fee for use of the H.264 patent in Windows (50¢), but is licensing the Wi-Fi and H.264 patent on the Xbox 360 at 2.25% of the retail cost (currently $4.50 - $9.00 per unit) despite the fact that the function or importance of neither patent increases.   

You can assume, based on damages awarded in the HTC case that the cost for licensing the package is $5.00, however damages included lawyers fees and court costs, so the actual cost is likely a lot lower than $5.00.  Microsoft doesn't charge $15 to license 50+ patents.  It charges $15 to license Windows Phone 7.  If they charged $15 to license the patent portfolio to Android OEMs, then there would be a huge uproar if not a major legal battle because it would be the same exact price for Windows Phone 7.  It would be both price gauging and unfair and no court would permit it. 

I talked to a guy that said he was there when this happened. He said Motorola was sitting at the table with Microsoft and wrote something on a napkin. Motorola said, "We think you will find this deal satisfactory..." and slid the napkin over to Microsoft. Microsoft took one look at the napkin, flipped the table over and stormed out of the room! It was crazy!!

Motorola has said that when Microsoft came to them their opening offer was 2.25% of retail costs and that Microsoft didn't entertain a negotiation.  But interestingly enough, Motorola still is seeking the 2.25% of retail cost.  It's is also the same amount they have and continued to seek from Apple (that case was dismissed last night with prejudice).  So, I don't see where, with either party, that Motorola is negotiating. 

I made the whole thing up so you guys would think I was cool.  :(

Don't worry d21, I found it quite amusing :p

https://www.google.com/search?q=android+microsoft+samsung

Most of the news this search finds report MS asking Samsung for $15 for patents in Android phones, not for Win Phone.

NOOOOO! I so hoped it were the long awaited sequel of the infamous chair-throwing Ballmer!   

Forgive me if im boiling it down too simply, but is the argument that the technology is so good that its not fair for them to charge what moto thinks it is worth?

Anyhoo, what is a fair price? 5 per unit? Ten?
What do others pay? I would thinl that it would be really unfair to let ms pay less but everyone else had been paying 2.25% from the start. So paying the price upfront is just stupid? Better to steal it and go to court when youre sued? Better yet, sue the company youre stealing from and when brought to court say "but theyre not being fair, your honor".