Microsoft Inks Patent Licensing Deal with Pegatron

These days, Microsoft is in the news more for its patent purchases and licensing deals than for its products. It recently acquired a boatload of patents from AOL and sold some of them off to Facebook.

It has one of the largest patent portfolios in the world, and generates a significant amount of revenue through patent licensing agreements.

Its most famous target — Android — is expected to generate more than a billion dollars in licensing revenue for it every year. It already has licensing deals with most top Android device manufacturers, which cover more than 70 percent of all Android devices sold in the U.S.

Today, it announced that it had entered a patent agreement with Pegatron, covering its products like eReaders, smartphones and tablets which run the Android or Chrome platforms. Pegatron is one of the largest ODMs, and could generate a sizable amount of licensing fees for Microsoft in the coming years.

While the exact details of the deal haven’t been revealed, Pegatron could be paying Microsoft around $5-$10 for every Android/Chrome device that it ships.

“We are pleased to have reached this agreement with Pegatron and proud of the continued success of our Android licensing program in resolving IP issues surrounding Android and Chrome devices in the marketplace. With this agreement, Microsoft has now licensed four of the top five Taiwanese ODMs,” said Horacio Gutierrez, corporate vice president and deputy general counsel, Intellectual Property Group at Microsoft.

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