Foxconn Electronics (Hon Hai Precision Industry) on April 17 signed contracts with Microsoft to acquire authorization for patents used in the production of Android- and Chrome-based devices such as smartphones, tablets and TVs.
Although fees were not disclosed during the event, as demand for Android products continues to rise, Microsoft is expected to remain the biggest winner in the mobile competition, some market watchers pointed out.
As for the reason Microsoft is demanding fees from downstream ODMs instead of Google, the developer of Android and Chrome, the market watchers pointed out that since Google is not selling or charging licensing fees for its software, it would be difficult for Microsoft to win a lawsuit against Google and therefore Microsoft has turned to target the downstream players for the extra cash.
In addition to Foxconn, Samsung Electronics, LG, High Tech Computer (HTC), Acer, ViewSonic, Nikon, Compal Electronics, Wistron and Quanta Computer have all signed contracts with Microsoft for patent authorization.