Microsoft demanding $6.9m from Samsung

Lawsuit says interest payment due in dispute over patent royalties

Reuters October 04, 2014


Microsoft Corporation is demanding $6.9 million interest from Samsung Electronics in a dispute over smartphone patent royalties, according to a lawsuit unsealed by a New York federal court.

Microsoft is asking the court to rule that it did not breach a business collaboration agreement with Samsung, and that Samsung must pay interest of more than $1 billion in royalty payments, which it delayed in protest at Microsoft’s purchase of rival Nokia’s handset business.

Samsung made royalty payments on time to Microsoft during the first fiscal year after they signed their 2011 agreement, the lawsuit said. However, after Microsoft announced the Nokia deal in September 2013, Samsung initially refused to make another payment. They argued that the Nokia deal breached its licensing agreement with Microsoft.  Samsung eventually paid late without adding interest, according to the lawsuit.

Microsoft successfully argued that Google Inc.’s Android mobile system uses some of its technology, and as a result most hardware makers, including Samsung,  agreed to pay patent royalties on Android handsets.

Motorola is one of the main holdouts, and that company has been in litigation against Microsoft since 2010.

A redacted version of the lawsuit was filed by Microsoft in August. Samsung, however, did not respond to a request for comment.

Published in The Express Tribune, October 5th, 2014.

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