"So Android, like every large software product on the planet, infringes numerous Microsoft patents." while that might be true you can't tell until there is a lawsuit. Right now Microsoft is claiming this but no one wants to bet the other way.
One of the things Microsoft has done well is to pick the right pricing plan and the right industry. By making it a per unit fee on Smartphones you make it easy for manufacturers to pass the cost on to the consumer who then subsidizes it through a contract with their provider. The $5 per unit HTC pays Microsoft is only $.20 a month when passed directly on to the consumer and spread out over 2 years.
I just hope the large Android ecosystem starts pushing for patent reform, and soon. This is just fundamentally broken market behavior...Microsoft is getting protection money. They don't even have to provide products people want, and they still make money on every smart phone sold.