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Microsoft takes Samsung to court over delayed royalty payments

On Friday, Microsoft said that it is suing Samsung in a bid to resolve delayed payments of smartphone patent royalties.
August 4, 2014

The mobile industry’s big players seem to be constantly embroiled in various legal challenges against one another. This time it is the turn of Microsoft and Samsung, with the former accusing the latter of delaying royalty payments regarding Android smartphones.

Samsung, along with various other smartphone manufacturers, has an existing contract with Microsoft regarding various patented technologies, whereby the company pays royalties to Microsoft for each handset that they sell. Microsoft and Samsung both signed up to a large patent deal back in 2011.

However, Microsoft is accusing Samsung of delaying these royalty payments since late last year, which is around the same time that Microsoft announced its purchase of smartphone manufacturer Nokia. It seems that Samsung is attempting to argue that Microsoft’s acquisition of Nokia has in some way voided part of, or all of, their existing contract.

After failing to resolve the contract dispute over the past several months, Microsoft has asked the courts to declare the Microsoft-Samsung pact valid and enforceable, and to find that Samsung owes Microsoft interest on the late payments as well.

“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,” David Howard – Microsoft deputy general counsel

This is not the first time that Samsung has been accused of owing payments for patents. Earlier in the year, Apple also demanded royalties from Samsung regarding a number of patented smartphone technologies.

Samsung has stated that it will be reviewing Microsoft’s complaint, and will determine the appropriate response in due course.

Redacted (Public) Complaint