Microsoft and HTC have signed a patent agreement that provides coverage under Microsoft?s patent portfolio for HTC?s mobile phones running the Android mobile platform. Under the terms of the agreement, Microsoft will receive royalties from HTC, the companies said.

The agreement expands HTC?s long-standing business relationship with Microsoft.

"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, corporate vice president and deputy general counsel of Intellectual Property and Licensing at Microsoft. "We are pleased to continue our collaboration with HTC."

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

In March, Apple Inc sued HTC over its Android phones, accusing it of infringing hardware and software patents related to the iPhone.

Tuesday's deal signals that Microsoft is not likely to start a similar legal patent dispute with HTC over Android phones.