HTC to pay Microsoft for selling Google Android based phones

Tuesday, Microsoft announced it signed a licensing deal with HTC. Under this agreement software maker will get royalty payments on HTC phones running Google Android operating system.

Microsoft did not detail what technology in the phones the agreement concerns.

The deal appears as smartphones using Google's new operating system gain in popularity. Microsoft charges handset makers like HTC and others to use its Windows phone software.

The smartphone market is split with legal disputes as software companies and handset makers wrangle over who deserves compensation for technology behind new devices which go well beyond traditional mobile phones.

Earlier, in March Apple prosecuted HTC that produces a number of Android-powered devices, including the Google-branded Nexus One, over its Android phones, accusing it of infringing 20 hardware and software patents related to the iPhone.

Tuesday's deal reflects Microsoft’s unwillingness to start a similar legal patent dispute with HTC over Android handsets.