Microsoft alleges that Samsung defaulted on payment last fall, and is resisting to pay up any surcharges. The payment is part of a patent-sharing accord, which the two companies negotiated in 2011.
On his blog, Microsoft’s deputy general counsel David Howard stated they have spent months attempting to resolve the issue though Samsung has made it clear in a series of discussions and letters that the implications of the contract is the absolute bone of contention.
Samsung and Microsoft agreed in September 2011 to permit access to each other’s patents. They however never issued the terms of the deal and Microsoft’s complaint edited all the dollar figures. Rick Sherlund, Nomura Securities’ telecom analyst, approximated that Microsoft makes $2 billion per year on patent royalties related to devices that run on Google’s Android operating system designed by Samsung and other companies.
Samsung’s smartphone sales have quadrupled since the contract was signed as the company grew from shipping 82 million Android-powered handsets in 2011 to shipping 314 million three years later, Microsoft maintained.
Samsung has become a smartphone goliath, and the biggest maker of handsets powered by Google’s free Android software.
After Microsoft made a deal last year to buy Nokia’s smartphone business, Samsung stopped abiding by the cross-licensing contract, the US company says.
Microsoft said in the filing that Samsung used the Nokia business acquisition as grounds to step away from the licensing deal.
So far, Samsung has not responded to the claims.
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