Microsoft has announced a new patent partnership with Luna Mobile which will extent to smartphones and other telecommunications services.

While details of the agreement have not been released to date, the announcement did state Microsoft would receive royalties, suggesting this could be a ploy for the tech giant to recoup some of its investment during its varied venture into the world of mobile devices.

Microsoft’s previous undertaking in the mobile devices market segment was largely deemed a failure, as the team has been working to sell off the remaining valuable assets from the $7.9 billion Nokia acquisition in 2014. Last month, Microsoft announced it would be selling the feature phone part of the Nokia acquisition to FIH Mobile, however almost twelve months ago Microsoft announced it would accept impairment charge of $7.6 billion, effectively writing off the entire value of the original acquisition.

“Microsoft is committed to empowering people all over the world to increase their productivity, and that’s what this new collaboration with Luna Mobile is all about,” said Nick Psyhogeos, President of Microsoft Technology Licensing. “Luna Mobile is at an exciting place right now, and its partnership with Microsoft on patents will usher in the kind of innovation needed to deliver enhanced features and user experiences for customers all over the world.”

Although the specifics of the new partnership have not been released it would appear Luna Mobile will be aiming to undercut competitors with its offering as it claims to offer premium smartphones at 50% of the cost of competitors. Currently, its most expensive model is priced at $399, though what IP the company will be licencing from Microsoft is unknown for the moment.

“When we launch later this year, we look forward to providing distributors and consumers with the best and most cost-effective mobile devices and technology currently available,” said Todd Walker, CEO of Luna Mobile. “Collaboration with companies like Microsoft has helped tum our vision into a reality.”