It may come as a surprise, but Microsoft owns a lot of patents used in Android devices. In 2011 after a dispute over licensing fees, the tech behemoth entered a cross-licensing agreement with Samsung, allowing the allies to share one another’s intellectual property at a cost. Today, Microsoft has filed a lawsuit in an attempt to force Samsung to hold up their end of the bargain.
While the exact details of the lawsuit haven’t been revealed (and we have yet to hear Samsung’s rebuttal), Microsoft’s stance is that in the years since the agreement, Samsung’s wireless division has grown significantly and Samsung aren’t paying their proper due. In 2014 Samsung is on the way to selling 314 million intelligent devices, up from 82 million units the year the pact was signed. As a result, Samsung is obligated under contract to pay a larger sum to Microsoft.
David Howard, Corporate Vice President & Deputy General Counsel for Microsoft, claims that Samsung is using Microsoft’s acquisition of Nokia’s wireless division as leverage to nullify the contract. He goes on to say,
“We don’t take lightly filing a legal action, especially against a company with which we’ve enjoyed a long and productive partnership. Unfortunately, even partners sometimes disagree. After spending months trying to resolve our disagreement, Samsung has made clear in a series of letters and discussions that we have a fundamental disagreement as to the meaning of our contract.”
While Samsung’s side of the story has yet to come out, this isn’t the first time they’ve been taken to court for patent disagreements. It will be interesting to see how this one plays out in the coming weeks. Sound off in the comments with your thoughts on the matter.
Via: Phone Arena
Source: Microsoft
Come comment on this article: Microsoft files lawsuit against Samsung for Android royalty payments
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