Redmond-based software giant Microsoft and Finnish handset manufacturer Nokia recently finalized Windows phone pact, in a deal which is being considered as a win-win partnership for both the companies.

Under the terms of the agreement, Microsoft will receive Windows Phone royalties and will pay Nokia substantial payments for adopting Windows Phone.

The companies will a Nokia-specific Windows Phone marketplace to promote apps to devices running on Windows Phone. In addition, Nokia will offer mapping services to all Windows Phone-based devices via Navteq. Microsoft’s search engine Bing will also be deployed across all Nokia devices.

The deal recognizes the value of intellectual property and puts in place systems for swapping rights to intellectual property.

The world’s leading mobile phone company, Nokia, hopes that the partnership will allow it to regain a large chunk of the smartphone market share that it lost to rivals like apple.

Nokia is still the largest handset supplier in the world, but its growth has stalled in Latin America, China and India, where it has the biggest potential for growth.

While rivals like Google’s Android have been enjoying unprecedented growth in market share, Microsoft has suffered a drop. Now, Microsoft is relying on its Windows Phone 7 to turn around its mobile business.