Microsoft Sues Samsung in U.S Patent Row

Microsoft Corp has filed a lawsuit against its long time partner Samsung over an alleged breach of a royalty payments contract which was signed in 2011.

This issue has been going on for months and both parties have been trying to solve it out of court. However on Friday Microsoft filed a patent-royalty suit in the US District Court in the Southern District of New York, against Samsung. Microsoft are complaining that Samsung have missed royalty payments and therefore owe them money. The agreement was that Samsung was to pay an undisclosed amount to Microsoft for each Android device it sold as they are using many of Microsoft’s patents in Googles Android OS such as the web browser multiple pages display.

Samsung are arguing that due to Microsoft acquiring Nokia last year, they don’t owe them a penny, alleging that this has already breached the licensing contract and other business agreements, meaning that they are not entitled to pay any further royalties. Microsoft have said acquiring Nokia has no effect on their contract.

Samsung sold 82 million Android smartphones in 2011 when it signed the agreement with Microsoft, according to Microsoft the amount paid per device should have increased with each android device sold. With Samsung having quadrupled their sales to 314 million and with Microsoft earning an estimated $2billion dollars from such agreements, understandably they are looking for their money.

This isn’t the first company Microsoft have had disputes with about royalty payments, they have been engaged in lawsuits with Motorola since 2010 as they too have refused to pay. Microsoft have previously filed lawsuits against other device manufactures such as Inventec and Foxconn, showing they will do battle with just about anyone.

Thanks to Bidness ETC for supplying us with this information.

Image courtesy of Bidness ETC.