Microsoft Files Lawsuit Against Samsung For $6.9 Million For Unpaid Interest of $1 Billion
On Oct 3, Microsoft filed a new lawsuit against Samsung for $6.9 million. According to the software giant, this amount is nothing but unpaid interest from Samsung.
According to GSMArena, in 2011, both the companies had agreed upon a cross-licensing patent deal in which it was decided that each Android smartphone manufactured by Samsung would yield royalties to Microsoft for seven years. The 2011 deal even stated that Samsung would help in advertising and development of Windows Phone powered tablets and smartphones.
On the official statement released on Microsoft's blog, it is mentioned that Samsung has suggested that the software giant has violated the licensing pact. However, Microsoft does not agree to it. GSMArena states that everything was going well between Microsoft and Samsung until the former acquired Nokia Devices and Services. When it happened, Samsung voiced that the acquisition of Nokia somehow invalidated their cross-licensing deal with Microsoft.
According to CNet, Samsung paid $1 billion that it was supposed to in 2013, but Microsoft claims that Samsung failed to make payments for two years on time because Samsung owes $6.9 million in damages. GSMArena claims this is the reason why Microsoft is suing Samsung. It adds that Samsung has threatened they will not be making payments and the issue should be resolved in the court.
ZDNet's report from last year states that the Microsoft makes nearly $8 per Android device because of the Android patent agreements made by the company with leading Android OEMs Foxconn, HTC, ZTE and Samsung.
For quite some time, it was not known what these Android OEMs were making payments for. Neither Microsoft nor other companies involved in it revealed what Android patents were violated. ZDNet claims that Microsoft has been making huge profits by Android vendors for violating patents. GSMArena states that even though Microsoft slaps a lawsuit on Samsung for unpaid interest, the software giant states it hopes to maintain partnership with Samsung in the future.