Microsoft announced on Thursday that it has signed a patent agreement with Quanta Computer.
The deal will cover Quanta under Microsoft’s patent portfolio for the company’s tablets, smartphones and other devices running on Android or Chrome. Microsoft will receive royalties from Quanta under the agreement. Quanta Computer is a Taiwan-based manufacturer of notebook computers and electronics. Quantra’s customers include Apple, HP, Sony and others. The company was the original design manufacturer for the One Laptop per Child project and has an estimated 31% worldwide market share of notebook computers.
“We are pleased to have reached this agreement with Quanta, and proud of the continued success of our Android licensing program in resolving IP issues surrounding Android and Chrome devices in the marketplace,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft.
Microsoft has previously inked patent protection deals with Wistron, General Dynamics Itronix,Velocity Micro, Onkyo, Acer, Viewsonic and Samsung. The agreements are all similar and provide cash royalties to Microsoft. Samsung’s deal also includes a Windows Phone marketing aspect that will see the companies work closer on Microsoft’s mobile platform. The deals follow a HTC and Microsoft patent agreement signed last year relating to HTC’s mobile phones running Android. Although the terms of the deal were undisclosed, it was recently reported that Microsoft receives $5 for every HTC device sold. Microsoft is widely believed to generate more revenue from Android patents than its own Windows Phone licences. Analysts believe Microsoft generates $444 million each year from Android patents.
Microsoft is also chasing Motorola for a similar Android patent deal. Google announced in August that it plans to acquire Motorola Mobility for $12.5 billion. Google CEO Larry Page noted at the time of the deal announcement that Microsoft and Apple are “banding together in anti-competitive patent attacks on Android.” Google hopes its move to purchase Motorola Mobility will better protect Android in the future. Microsoft kicked off its trial at the International Trade Commission (ITC) in late August by seeking to block imports of the Droid 2, Droid X, Cliq XT, Devour, Blackflip and Charm. Microsoft’s Motorola ITC case is ongoing and the administrative law judge, Theodore Essex, will release his initial findings in the case on November 4. The commission will complete its full investigation by March 5.