China based mobile-phone equipment maker, ZTE has signed a patent license deal with Microsoft, under which ZTE will pay royalty to Microsoft for the devices it manufactures based on Android and Chrome operating systems (OS).
According to the company, 80% of Android based smartphones sold in the US and a large share sold worldwide are covered under agreements with Microsoft.
In the last week, Foxconn’s parent company, Hon Hai had signed an agreement similar to that of the ZTE.
Microsoft has paid over $4bn in the past ten years to secure the patent rights of the products.
According to a blog post by Microsoft Legal & Corporate Affairs corporate vice president and deputy general counsel Horacio Gutierrez, the technology companies recognise licensing is an effective way to share technology.
"This balanced approach to intellectual property licensing explains why, while others continue to pursue litigation around the world as the primary means of addressing their differences, we have successfully entered into license agreements with nearly all companies on the list of the world’s largest Android smartphone vendors and their manufacturers," Gutierrez said.
Google’s Motorola is one of the notable Android maker who has so far resisted to sign a deal with Microsoft.
