Microsoft Files Suit Against Samsung Over Android Payments

Android puzzleThe legal war relating to patents and copyright claims has been going on for many years in courts across the world but Microsoft and Samsung had entered into a patent licensing deal three years ago in 2011 and since then there have been no reports of issues between the two companies.

However, this peace is no more in place. Microsoft has sued Samsung claiming that it is not honoring  the agreement that was reached between the two tech giants over android royalty payments three years ago.

Microsoft has claimed in the lawsuit that Samsung has started to delay the Android royalty payments since last fall and is not inclined to pay the interest on delayed payments, which was envisaged in the agreement of 2011. Microsoft says that Samsung has also again indicated that it will not honor the agreement because in it’s view the Nokia acquisition by Samsung is a breach of the contract between the two companies.

David Howard, a deputy general counsel at Microsoft, has indicated in a blog post that the real reason for these delaying tactics is the fact that sales of Samsung smartphones have quadrupled over these three years which means royalty payments have increased considerably against Samsung’s liking.

The lawsuit does not detail how much money Samsung owes Microsoft but independent estimates put it at billions of dollars every year for royalty payments.

Mr Howard wrote “Samsung predicted it would be successful, but no one imagined their Android smartphone sales would increase this much.” He also has said that Microsoft has tried to sort out the issue with Microsoft without success. 

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