Chinese telecom firm ZTE has signed a licensing agreement with Microsoft

Apr 24, 2013 11:28 GMT  ·  By

After Foxconn, Chinese telecom firm ZTE is the second giant of the week to sign a licensing deal with Microsoft to pay the software company royalties for every single Android device it sells.

Since Microsoft has patents that protect technologies used on Android phones, large companies across the world have no other choice than to sign licensing agreements and pay a specific fee to the Redmond-based software firm for the devices it makes.

While no specifics have been provided, ArsTechnica writes that, by signing a deal with ZTE, Microsoft makes sure that approximately 80 percent of all Android devices sold in the United States are licensed, thus generating an important amount of money for the company.

More details about the new licensing agreement are expected to be provided in just a few hours, as Microsoft will most likely formally announce the deal with a press release.