Microsoft currently is in a legal battle with Samsung. It seems that the famous company decided to sue Samsung over patent royalties. What Microsoft claims at this point is that Samsung refused to make a royalty payment last fall.
According to them, the South Korean smartphone maker refused to make this payment on patent licenses last fall. They did so after Microsoft announced that they will purchase Nokia’s handset business. The lawsuit was already filled by Microsoft in a Manhattan federal court. The company seeks monetary recovery from Samsung.
A statement released by Microsoft indicates that while the company “values and respects our partnership,” with Samsung, the two tech giants have different opinions on how their licensing agreement should be interpreted. “Unfortunately, even partners sometimes disagree,” the same statement added. Samsung also claimed that they have no response for now, but their statement indicated that they will review the complaint in detail and determine an appropriate response.
When it comes to the mobile market, the competition is actually quite impressive. One of the most powerful products on the mobile market is without a doubt Google’s Android operating system. Microsoft cannot be very happy with the success of these devices, so it is claimed that the company is trying to beat the Android by rising costs for Android handset makers. One of the strategies used is to convince them to pay Microsoft patent royalties.
Samsung agreed to pay these royalties, such as LG and HTC also did. The agreement between Samsung and Microsoft was signed back in 2011. During the first year, Samsung made all required payments, but it seems that the company refused to continue to make new payments after the deal that Microsoft has with Nokia has been announced.
The refuse to pay Microsoft in the terms of their deal determined the famous tech giant to take action and file a lawsuit against Samsung. It is yet to see how Samsung will react and if the two tech giants will reach a deal or not. Microsoft seeks monetary recovery from Samsung, but the sum they are willing to obtain has not been revealed to the public.