It is Microsoft vs Samsung in the United States Federal Court, Over Patent Royalties

Microsoft has filed a lawsuit against Samsung, claiming that the South Korean electronics manufacturer breached a patent-licensing agreement, made between the two companies earlier.

Microsoft’s lawsuit has been filed in a Federal court in the United States, and the Redmond-based company says that its latest legal suite is to enforce the company’s contract with Samsung.

Microsoft, in its lawsuit, has claimed that Samsung refused to pay patent royalty, as per a 2011 agreement between both the companies, involving Android smartphones.

As per the agreement, Microsoft and Samsung had mutually agreed to share each others’ IP licenses.

Apparently, the Redmond-based company has patented various Android technologies such as mechanisms to display multiple windows within web-browsers that run on Android.

Microsoft has also reportedly inked cross-platform royalty agreements with major technology companies (apart from Samsung), such as HTC and LG, which have agreed to obtain royalty from Microsoft by paying for the same.

However, another technology company Motorola is said to have been involved in a legal process with Microsoft since 2010.

“In 2011, after months of painstaking negotiation, Samsung voluntarily entered into a legally binding contract with Microsoft to cross-license IP – an agreement which has been extremely beneficial for both parties. Samsung had been complying with the contract and paying to use Microsoft’s IP,” states Microsoft, in an official blog post.

The company also adds that post the agreement, Samsung reported a tremendous increase in sales of its Android smartphones.

The South Korean electronics major reportedly shipped 82 million Android smartphone units, across the globe, after its agreement in 2011.

In Q1 2014, Samsung’s Android smartphone shipments are estimated to have touched the 314 million mark, indicating a rapid upward surge in Samsung’s smartphone shipments.

“After becoming the leading player in the worldwide smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft,” Microsoft goes on to state.

Apparently, the main reason behind the breach of agreement is linked to Microsoft’s acquisition of Nokia’s Devices and Services business, which was announced publicly in 2013.

Microsoft says that Samsung used its acquisition process as a justification to breach the mutual agreement.

“Curiously, Samsung did not ask the court to decide whether the Nokia acquisition invalidated its contract with Microsoft, likely because it knew its position was meritless,” adds the Redmond-based company.

However, Microsoft is yet to make public the royalty amount, that it is reportedly entitled to receive from Samsung.

Samsung, on its part, has said that Microsoft’s acquisition of Nokia resulted in breaching the agreement. The company also claims to have issued royalty payments to Microsoft, albeit belatedly, and without interest.

Samsung has also stated that the devices made commercial by Microsoft, after its take-over of Nokia, are not liable to be covered under its agreement with Microsoft.

“Microsoft and Samsung have a long history of collaboration. Microsoft values and respects our partnership with Samsung and expects it to continue. We are simply asking the Court to settle our disagreement, and we are confident the contract will be enforced”, states the Redmond-based company.

It is Microsoft vs Samsung in the United States Federal Court, Over Patent Royalties