ESSEN Patent & Trademark Office

Microsoft signs Android patent deal with Foxconn’s parent company


Posted by: ESSEN Patent & Trademark Office
Practice Area: Patent    Country: China    Publish Date: 02-May-2013

Microsoft has secured a patent deal with the world'sbiggest consumer electronics manufacturer to receive fees for devices poweredby Google's Android and Chrome operating systems.

Hon Hai - the parent company of Foxconn - said the dealwould help prevent its clients being caught up in an ongoing intellectualproperty dispute.

Microsoft says that Google's code makes use of innovationsit owns.

Google alleges its rival's claims are based on "boguspatents". However, the search giant's Motorola handset division has itselflost a number of legal challenges involving some of the disputed technologieswhich may have encouraged others involved in the smart device sector to settle.

According to the Foss Patents blog, which tracks suchmatters, this is the nineteenth announced patent license deal Microsofthas secured since 2010 from companies whose products use Google's mobile andlaptop operating systems.

Other firms to have agreed to pay royalties include HTC,Samsung, LG, Sharp and Acer.

Although the terms of the deal with Taiwan's Hon Hai havenot been disclosed, patent law dictates that Microsoft cannot"double-dip" by charging both a product's designer and itsmanufacturer a full royalty charge. So, in cases where Hon Hai makes anAndroid-powered smartphone, tablet, camera or television for a customer who hasalready signed a patent deal it will be up to the two parties involved to agreehow the charge should be divided up.

Lawsuit threat

Hon Hai describes itself as the biggest manufacturingservices provider to the computer, communication and consumer electronicsindustries. Forbes estimates the firm assembles about 40% of the sector's products.

"We recognise and respect the importance ofinternational efforts that seek to protect intellectual property," SamuelFu, Hon Hai's intellectual property director, said in a statement. "Thelicensing agreement with Microsoft represents those efforts and our continuedsupport of international trade agreements that facilitate implementation ofeffective patent protection." The firm added that it owned more than54,000 patents of its own.

The agreement comes just over two years after Microsoftannounced it had filed legal action against the Asian firm in the US courts. Itsaid at the time: "The patents at issue cover a range of functionalityembodied in Android devices that are essential to the user experience,including: natural ways of interacting with devices by tabbing through variousscreens to find the information they need; surfing the web more quickly, andinteracting with documents and ebooks."

Had Foxconn lost the case it might have faced an importban.

Last month Microsoft launched a Patent Trackertool to make it easier for rivals to check which technologies it claimsownership to and suggested others introduce similar facilities.

According to the tech consultancy Asymco, Microsoft islikely to earn several times more money through its Android patents than itdoes from licenses for its own Windows Phone system.

(Source: BBC News 2013-04-17)


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