Microsoft has signed a licensing deal with Foxconn's parent Hon Hai Precision Industry as part of its long-running Android licensing scheme.
While Foxconn is perhaps best known for its manufacturing relationship with Apple, the company is also contracted by OEMs to manufacture their Android devices. Under the terms of the deal, Microsoft will get paid a flat fee per Android and Chrome-based device that Foxconn makes. A staggering 40 percent of the world's phones come from the firm's China-based factories.
Microsoft announced on Tuesday that Hon Hai had agreed to pay it undisclosed Android royalties. The arrangement will serve to protect Hon Hai's OEM partners from lawsuits.
According to Ars Technica, the agreement means that Foxconn is now the biggest licensee of Microsoft patents.
While Microsoft already has similar deals with several OEMs such as Acer that use Foxconn for manufacturing, the company will reportedly only collect fees once per device; both licensees will work out who pays the fee as part of their contract, according to the press release.
The two companies have had their legal tussles in the past - Microsoft sued Foxconn in 2011 over the Nook e-readers it makes for Barnes & Noble - but the new alliance should mark a fresh start for both parties.
"We recognise and respect the importance of international efforts that seek to protect intellectual property," Samuel Fu, Hon Hai's intellectual property director, said in a statement.
"The licensing agreement with Microsoft represents those efforts and our continued support of international trade agreements that facilitate implementation of effective patent protection."
