Taiwan tech giant Hon Hai, parent company of FoxConn, will pay royalties to Microsoft to ward off a lawsuit over its production of devices using rival Google's Android and Chrome platforms.
A Microsoft statement late on Tuesday did not reveal the amounts the US company will be paid however.
The licensing agreement protects Hon Hai from claims that the cell phones and televisions it produces and which use Android and Chrome infringe on Microsoft's patented technology.
The Taiwanese company is the world's largest contract electronics maker and assembles products for Apple, Sony and Nokia, among others, in huge plants in China where it employs more than one million workers.
Explore further: Short sellers not to blame for 2008 financial crisis, study finds