Every Android and Chrome devices manufactured by Foxconn-including smartphones, tablet devices, and television-now will contribute revenue for Microsoft.
Why, on 17 April giant Chinese manufacturer signed a patent licensing agreement with Microsoft, which claims to have patents on several technologies used two platforms of Google's smart devices.
The value of the agreement were not disclosed. Clearly, Microsoft will get royalties on each Android and Chrome devices crafted by Foxconn.
"We recognize and respect the international efforts to protect intellectual property rights. Agreement reflects our support for international licensing agreements," said the director of the intellectual property department of Hon Hai (Foxconn's parent company) Samuel Fu in a statement, as quoted by AllThingsD enumerated.
Microsoft's patent licensing program launch in December 2003. Through this licensing program, Microsoft can extract payments from those who use patented technology the company.
Since then, a number of major players in the mobile industry have signed a patent licensing agreement with Microsoft, including Samsung, LG, HTC, Acer, Viewsonic, even Nikon.
In the second quarter of last year alone, Microsoft reportedly managed to rake in royalty revenues amounted to 800 million U.S. dollars from Samsung and HTC for Android devices that produced the two companies.
Never Challange Google On Court
Then, why Microsoft did not attract a fee as the developer of Google Android and Chrome?
A number of analysts believe the reason is Google does not sell or charge licensing fees from those who use the homemade software. Thus, it is difficult for Microsoft to win a lawsuit against Google in order to attract a license fee.
Google itself has long been against Microsoft claims that Android and Chrome infringe its patent number.
Google's stock value had been reported to decline in early trading Wednesday, following news of a licensing agreement between Foxconn and Microsoft.
On the other hand, the hardware manufacturer to partner Google seems to prefer to pay royalties to Microsoft in order to avoid future lawsuits.
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