Microsoft has reached a legal agreement with Taiwanese smartphone manufacturer HTC where the latter must pay the software giant $5 for each Android handset that it makes, even if they don't make it to the market.
A report published by a Citigroup analyst revealed the special settlement between HTC and Microsoft over a dispute involving Microsoft patents, which was reached on the 27th of April and shields HTC from any expensive and damaging lawsuit.
Horacio Gutierrez, Corporate Vice President and Deputy General Counsel at Microsoft, said in a statement, "HTC and Microsoft have a long history of technical and commercial collaboration, and today’s agreement is an example of how industry leaders can reach commercial arrangements that address intellectual property".
Microsoft has already sued both Motorola and Barnes & Noble over alleged patent infringements for the use of Google's Android operating system. Motorola now exclusively builds Android smartphones and tablets while B&N uses Android in its Nook Ebook Reader.
The Citigroup report also mentions that Microsoft is seeking between $7.50 and $12.50 per unit license to "settle alleged infringement of Microsoft patents" according to the Seattle Times.