Microsoft and Foxconn sign patent agreement for Chrome devices

Microsoft to receive automatic royalties on patents in future

Microsoft and Hon Hai Precision Industry Co Ltd - Apple's largest manufacturing partner, which trades as Foxconn - have signed a patent deal to protect Foxconn clients from patent claims that could arise from the use of Google's Android and Chrome platforms in their devices.

The agreement effectively makes Foxconn Microsoft's largest licensee for the patents it holds on Android and Chrome, and makes its customers effectively immune from being pursued separately for Google OS-related patent violations in the future.

"Foxconn's clients don't need to worry about infringing Microsoft's patents anymore, because Foxconn has signed the agreement for them," said Vincent Shih, chief legal officer of Microsoft Taiwan Corp.

Foxconn reportedly manufactures more than 40 per cent of consumer electronics devices in the world, so the agreement can be considered a coup for the company, as well as Microsoft, which will automatically be paid royalties on every device created.

According to Foxconn, the deal covers patents for phones, tablets and even televisions.

Microsoft's decision to pursue a long-term agreement can be seen as a result of the loose-ends the company is still trying to tie up with other technology companies, including Motorola Mobility, the US-based mobile phone maker that Google bought last year.

Having settled with Samsung, LG and HTC, the agreement should reduce the competitive friction between Microsoft and these major mobile phone makers for the foreseeable future.

Furthermore, it raises the possibility that Microsoft could make more money from Android than it does from its own Windows Phone operating system.