On Friday Microsoft filed a lawsuit against Samsung for backing on the patent licensing deal the two signed back in 2011. It was agreed that Microsoft would receive royalties for Samsung’s mobile phones and tablets running the Android mobile platform. They had also agreed to jointly develop and market Windows Phone. Vendors like Microsoft insisted that the Android operating system incorporates some of their design features and despite Google’s disinterest in showing any sort of reaction, Samsung agreed to it and hence reached a patent sharing deal with Microsoft.
But then, according to Microsoft, Samsung stopped making the royalty payments on time last fall and now it is also refusing to pay the interest accruing due to the delays. Samsung on its part, has threatened to strike the deal because it thinks that with the acquisition of the Nokia Mobile business Microsoft has already breached its contract with Samsung.
Microsoft cites another reason. Aside from claiming that the deal with Nokia hasn’t breached its deal with Samsung, the only reason the South Korean electronics company isn’t paying the royalty is because its sales have quadrupled after partnering with Microsoft.
Samsung seems to have stopped making the payments in the second year but then resumed, without paying the interest for the delay. Here is the Reuters link to the whole news.