Microsoft and Hon Hai agree on patent licensing deal

Foxconn parent Hon Hai and Microsoft have reached an agreement on a patent licensing deal that covers Microsoft's patents on Android and Chrome OS. Terms of the agreement were not released, but the Redmond based software giant is expected to earn royalties from the pact. Speaking of the deal, it covers Hon Hai and Foxconn for the production of smartphones, tablets and televisions. While the agreement isn't expected to change the course of any lawsuit in progress, it might have been signed to prevent one from being filed by Hon Hai or Microsoft.

Microsoft started its IP licensing program in December 2003 and stated its intention to garner revenue using its mobile patents late in 2010. Since then, it has signed on the dotted line for over 1,100 agreements and continues to seek out customers, competitors and partners interested in using Microsoft owned patents. With its specific Android related IP, Microsoft has signed agreements with some pretty big Android producers such as Samsung, HTC, Acer, LG and Barnes and Noble.

In the second quarter of last year, Microsoft brought in $800 million from royalty payments due it from Samsung and HTC related to Android production. That was higher than Microsoft's Windows Phone revenue in that quarter. HTC is believed to pay Microsoft $10 for each Android phone sold while Samsung allegedly pays $12-13 per Android unit sold.

source: electronista

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