Microsoft Corporation (NASDAQ:MSFT) has entered into a patent deal with Foxconn Technology Co., Ltd. (TPE:2354) that will allow the former to earn fees for the devices powered by Google Inc (NASDAQ:GOOG) Android and Chrome operating systems.
Hon Hai Precision Industry Co., Ltd. (TPE:2317), the parent company of Foxconn Technology Co., Ltd. (TPE:2354) told the deal will protect its clients from the ongoing intellectual property dispute. According to Forbes estimates, Hon Hai assembles about 40 percent of the sector’s products. As per the Taiwanese firm it owns more than 54,000 patents of its own.
“The licensing agreement with Microsoft represents those efforts and our continued support of international trade agreements that facilitate implementation of effective patent protection,” says Samuel Fu, Hon Hai Precision Industry Co., Ltd. (TPE:2317)’s intellectual property director.
The terms of the deal with the world’s biggest consumer electronics manufacturer has not been revealed yet, but as per the patent law, Microsoft Corporation (NASDAQ:MSFT) cannot “double-dip” by charging both a product’s designer and its manufacturer a full royalty charge. This means that now, the Hon Hai Precision Industry Co., Ltd. (TPE:2317) and partner for which it makes an Android-powered smartphone, tablet, camera or television has to decide on how the charge should be divided up.
The software giant claims that some of the codes used by Google Inc (NASDAQ:GOOG) are owned by Microsoft Corporation (NASDAQ:MSFT) while Google denies such claims calling it as “bogus patents”. However, Google’s Motorola handset division has lost quite a few legal battles related to the disputed technologies. This might have forced some of the parties involved in the disputes to choose settlement. Other companies who entered the deal with Microsoft are HTC Corp (TPE:2498), Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), LG Electronics Inc. (KRX:066570) (KRX:066575), Sharp Corporation (TYO:6753) and Acer Incorporated (TPE:2353).
Since 2010, Microsoft Corporation (NASDAQ:MSFT) has won nineteen such patent license deal from companies whose products use Google Inc (NASDAQ:GOOG)’s mobile and laptop operating systems, according to Foss Patents blog.
The deal with the Hon Hai Precision Industry Co., Ltd. (TPE:2317) comes two years after Microsoft announced filing claims against the Asian firm in the US courts. It is a good deal on the part of Foxconn Technology Co., Ltd. (TPE:2354), had it would have lost the case it might have faced an import ban.
To facilitate the rivals to check on the technologies that are patent protected, last month, Microsoft Corporation (NASDAQ:MSFT) launched a Patent Tracker tool and suggested other companies to come out with similar services. The tool might reduce the earnings of the software giant, as according to tech consultancy Asymco, Microsoft Corporation (NASDAQ:MSFT) could earn more money through its Android patents that from the licenses for its own Windows Phone system.