Samsung paid US$ 1 billion to Microsoft as a part of patent-licensing royalties

The Microsoft vs Samsung patent royalty lawsuit filed in a US District court in August 2014 reveals the Korean giant – Samsung paid US$ 1 billion to Microsoft as a part of patent-licensing royalties. As all know, Samsung sells smartphones and tablet devices powered by Google’s Android software. Microsoft said that some of its patents, like patents for displaying multiple windows in a web browser were included in Android technologies. Samsung, therefore, along with other manufacturers had to pay royalty fees to Microsoft for each Android device they sold.

Microsoft vs Samsung

Microsoft vs Samsung Patent Royalty Lawsuit

By virtue of the Android licensing program, approximately 80 percent of the Android-based smartphones sold in the U.S. are licensed to use Microsoft’s patents, Microsoft complained.

The company added, that under the License Agreement, Samsung agreed to make patent royalty payment for a period of seven fiscal years and in exchange acquire rights of using patented Microsoft technology in Samsung smartphones and tablets that use the Android operating system. For the first year, the payments were made without any hassles. However, in the later years Samsung dragged its feet and funds were not forthcoming.

Samsung failed to make its year-two royalty payment on time and to pay interest for not doing so, reports the filing.

The interest value itself amounts to over $6.9 million. Samsung, in its defence says Microsoft’s acquisition of Nokia voids the license agreement in its entirety. Patent disputes have become common in the smartphone dominated world and have often taken a firm course (court cases). The disputes include high-profile tussles between Samsung and Apple that generated strong reactions from the duo in the recent past.

The latest case shows intellectual property remains a flash point among bigwigs of technology.

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The author Hemant Saxena is a post-graduate in technology and has an immense interest in following Microsoft and other technology developments around the world. Quiet by nature, he is an avid Lacrosse player.