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Microsoft takes Samsung to court for refusing to pay patent royalty

Posted on 2 August 2014

Microsoft on Friday filed a lawsuit against Samsung for violating a patent cross-licensing agreement the duo had reached in 2011.

The agreement required Samsung to pay patent royalties to Microsoft for the use of its technology in each smartphone and tablet running the Android operating system it sells. The Redmond had inked similar deals with other Android device vendors as well.

However, Samsung’s failure to pay second-year royalties on time and then refusal to pay interest on late payment forced Microsoft to file a lawsuit against the Korean Electronics giant in a U.S. District Court in the Southern District of New York on August 1 seeking monetary claim.

Microsoft Deputy General Counsel David Howard in a blog post, wrote that Microsoft always values and respects its partnership with Samsung, but do not agree with the smartphone maker over its interpretation of the licensing agreement.

Howard said that Samsung stopped complying with its agreement with Microsoft after becoming one of the leading world-wide smartphone market contenders.

The Redmond officials, citing IDC data, said that Samsung is currently shipping smartphones close to 314 million as compared to 82 million Android smartphones shipped in 2011.

According to the lawsuit, Samsung refused to pay patent fees arguing that the Microsoft’s acquisition of Nokia breached its licensing agreement with the company. It’s however unclear for what reasons the Korean smartphone maker believed the acquisition invalidated the contract.

Howard said the company is confident that the Court will settle the disagreement and enforce the contract back.

Samsung, in response, said in a statement that it will review the complaint in detail and determine appropriate measures.

Megha
Megha

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