Hon Hai Industries, the parent company of Foxconn, recently signed a deal with Microsoft over the claims their intellectual property is on Google’s Android and Chrome products. According to tech firm Asymco, this deal itself will earn a lot more money than Microsoft does from Windows phone licenses alone.
The Taiwanese electronics manufacturing giant signed this deal in an effort to avoid any legal bashing by Microsoft over intellectual property dispute which Google says that Microsoft’s claims are ‘bogus claims’.
Ever since Motorola’s handset division lost the case with Microsoft involving certain patents from Microsoft which was involved in Google’s mobile and notebook OS made a lot manufacturers unfortunately and therefore agreed to pay a royalties in exchange to escape from any legal issues with Microsoft. Companies like HTC, L.G., Sharp, Acer and even Samsung, the company with the largest share in the smartphone market pay a royalty to Microsoft which alone gives them a lot of money. But with a deal with Foxconn’s parent company, that itself will earn a lot of money for the software company as its the largest consumer electronics manufacturer in the world.
Being the largest manufacturer of consumer electronics itself was the reason why it had to sign the deal with Microsoft. Had they lost the legal battle with Microsoft, they would face import ban, therefore facing huge losses.