Android Makers Agree to Pay Royalties to Microsoft

Microsoft, which reportedly demanded as much as $15 per unit, also inked similar deals with smaller companies Wistron, General Dynamics Itronix, Velocity Micro and Onkyo.

"We are pleased that ViewSonic is taking advantage of our industry-wide licensing program established to help companies address Android's IP issues", said Horacio Gutierrez, Microsoft's deputy general counsel. "This agreement is an example of how industry leaders can reach commercially reasonable arrangements that address intellectual property".

Microsoft stands to profit enormously if this settlement resembles its agreement with HTC, which gives $5 for every handset it sells. The lucrative deal gives Microsoft three to five times what it makes in Windows Phone sales.

Microsoft's settlement continues what some call its proxy campaign against Google. In March, the software giant sued Barnes & Noble's Nook e-reader, saying its Android OS violated Microsoft's patents. Last month, Microsoft also sued Motorola and requested the International Trade Commission ban its devices in the U.S.

But now that Google owns Motorola and its 17,000 patents, Microsoft may have more difficulty continuing its proxy war against Android. So far, Google hasn't lent official support to its phone makers in their legal battles over Android, but that may change.