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Microsoft, Dell sign patent pact on Android, Chrome

The patent agreement allows Microsoft to collect more royalties on Google software.

Dell Chromebook 11. Chromebooks are covered in the licensing deal. Dell

Microsoft and Dell announced a patent licensing agreement that covers royalty payments for Android, Chrome, and Xbox.

The two companies agreed on royalties for "Dell's products running the Android or Chrome platforms and on consideration to Dell for a license from Microsoft for Xbox gaming consoles," the two companies said in a statement.

Microsoft captures billions of dollars per year from Android royalties, analysts estimate.

"Our agreement with Dell shows what can be accomplished when companies share intellectual property," Horacio Gutierrez, corporate vice president at Microsoft, said in a statement.

He said the aim was to "craft licensing deals, instead of litigation strategies."

Correction: The quote in the original post should read: "Dell will pay the software giant royalties on sales of devices powered by Google ... Android or Chrome software."