Phone maker HTC is paying Microsoft $5 for every Android smartphone it makes in a legal settlement, according to a Citigroup analyst report on Microsoft.
The report, released today, said the fee was the result of a settlement reached between the Taiwanese phone maker and Microsoft over patent claims. HTC sells phones and tablets that run on Android, as well as Microsoft's mobile operating system Windows Phone.
Microsoft has sued Motorola and Barnes & Noble over patent claims on Google's mobile operating system Android.
Google gives away Android at no charge, and Microsoft is pursuing lawsuits against manufacturers that install the software on devices they sell.
"Our understanding is Microsoft is looking for a $7.50 to $12.50 per unit license to settled alleged infringement of Microsoft patents," the Citi report said.
Update 3:26 p.m.:
Microsoft declined to comment on the Citi report Friday.
The two companies said they had settled the patent dispute on April 27.
"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," said Horacio Gutierrez, a deputy general counsel at Microsoft, in an April statement.
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