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#Business

Microsoft Android patent licensing: $1 billion deal with Samsung one of the largest

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It turns out that the Microsoft’s Android-licensing business is way bigger than what has been imagined, according to the lawsuit by the software giant filed against Samsung for breach of payment.

The unsealing of the suit show that Samsung had paid Microsoft $1 billion for royalties for 2013 alone. The licensed technology finds use in Samsung’s smartphone and tablets that use Android OS.

In the lawsuit, Microsoft contends that Samsung was liable to pay licensing fee for 7 years in exchange for using the patent that Microsoft owns. Further it is claimed that Samsung has defaulted in payment and interest for the second year. Samsung has countered saying that Microsoft’s decision to buy Nokia’s device and service business has released it from obligations contained in the contract.

The Korean manufacturer is said to owe Microsoft more than $6.9 million in interest charges alone. Samsung has demanded that the contract be redone and the amount it owes be reduced or eliminated altogether saying that the same patent has been licensed in other countries and is being sold out of Korean territory.

It is widely believed that at least 2 dozen businesses have been granted licenses of which Samsung is but one. Earlier the Korean manufacturer was ordered to shell out $290 million in a patent dispute with Apple and yet another $120 million afterwards.
Microsoft has alleged that Samsung has asked Korean regulators to change royalty terms though already one exits between the parties to the contract.