Tech giants Microsoft and Dell have this week announced a patent licensing agreement that allows the two to license each other’s intellectual property related to Android and Chrome OS devices and Xbox gaming consoles.

They agreed on royalties for Dell to sell products running the Android or Chrome platforms; Microsoft reportedly generates $2bn per year in revenue from Android patent royalties, according to research firm Nomura analyst Rick Sherlund.

The firms also agreed on considerations to Dell for a license for Xbox gaming consoles. Microsoft uses Dell’s intellectual property in its gaming console and the royalties paid between the firms have been adjusted to take this into account.

“Our agreement with Dell shows what can be accomplished when companies share intellectual property,” said Horacio Gutierrez, corporate vice president and deputy general counsel of the Innovation and Intellectual Property Group at Microsoft.

“We have been partnering with technology manufacturers and vendors for many years to craft licensing deals, instead of litigation strategies.”