{24} Google's Disappointment, Microsoft's Gain

Microsoft signed it's 20th royalty-bearing Android patent licence deal with Hon Hai, the parent company of Foxconn, which is the manufacturer of more than 40 percent of the world's consumer electronics. The agreement comes at a disappointment to Google's Android and Chrome operating systems. Specifically, this means that any Android or Chrome device made by the Hon Hai group will result in direct royalty payments to Microsoft.

Google has continued to deny the need for a patent license agreement with Microsoft even after the multiple losses by Google's Motorola Mobility. According to Foss Patents, the Hon Hai deal reflects as a huge disappointment for Google as it reflects a respectful approach to intellectual property, unheard of by Google. In a statement by Hon Hai:

"We recognize and respect the importance of international efforts that seek to protect intellectual property. The licensing agreement with Microsoft represents those efforts and our continuous support of international trade agreements that facilitate implementation of effective patent protection."

 While Google announced 1.5 million Android device activations per day, predicting one billion Andorid devices by the end of the year--this is in a large part possible due to the intellectual property belonging to third parties like Apple, Microsoft, Nokia, Oracle, and many more as evidenced by the large number of patent infringements brought towards Google in the last could of years. In answering these infringements, Google will be using a  chunk of the Android revenue which will affect Android's long-term competitiveness.