Android royalties lead to a Microsoft and Samsung court battle

Scorpus

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Microsoft currently holds numerous licensing deals with Android manufacturers, which allow the use of their intellectual property in exchange for a small fee for each device sold. Samsung has held such an agreement with Microsoft since 2011, but recently stopped making royalty payments, according to Microsoft's legal team. As a result, the two companies are going to court.

Late last year Samsung decided that it didn't want to pay royalties on-time, or pay interest for late payments, alleging that Microsoft's recent acquisition of Nokia's phone business invalidated their agreement. Microsoft states that this is not only a breach of contract, but Samsung failed to even check with a court as to whether the acquisition made the contract invalid.

Microsoft's corporate VP and deputy general counsel, David Howard, said that after "spending months trying to resolve our disagreement, Samsung has made clear in a series of letters and discussions that we have a fundamental disagreement as to the meaning of our contract."

As the agreement dictates royalties are to be paid on a per-device basis, Samsung has a strong incentive to avoid making payments, especially as their Android device shipments have risen considerably since 2011.

Microsoft is confident that the contract will be enforced by the court, despite Samsung's claims of invalidation, without harming the relationship between the two companies. Meanwhile, Samsung will "review the complaint in detail and determine appropriate measures in response".

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Its sickening that we don't build high-tech devices in the countries where 99% of the technology is actually invented. Although it would probably be done by robots so it still wouldn't create any jobs.
 
Entire Apple must be rubbing its sweaty palms, while Mr Cook doing mad scientist laugh.
 
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Its sickening that we don't build high-tech devices in the countries where 99% of the technology is actually invented. Although it would probably be done by robots so it still wouldn't create any jobs.

A consequence of free markets and government policies. However, don't despair over the absence of jobs. Not only are there jobs, on-going increases to the U.S. labor supply will make our borders much more attractive to businesses moving forward.
 
Money makes the world go round so the players are fighting over it.
I call the outcome of the court case in favor of microsoft.

samsung should have gone to court for ruling on the invalidation of its contract with microsoft during the time when microsoft's nokia acqusition is still needing clearance from different regulating bodies of some 'super nations'.
 
Money makes the world go round so the players are fighting over it.
I call the outcome of the court case in favor of microsoft.

samsung should have gone to court for ruling on the invalidation of its contract with microsoft during the time when microsoft's nokia acqusition is still needing clearance from different regulating bodies of some 'super nations'.
Why would Samsung go to court if there was a clause in the contract that does what they say it does? Why would they spend the money or effort? They would just cite the condition and cease payment and it is in MS's court to chase in court. MSFT goes to court to dispute that the contract is being adhered to. Seems fair enough to me.
 
Its sickening that we don't build high-tech devices in the countries where 99% of the technology is actually invented. Although it would probably be done by robots so it still wouldn't create any jobs.

Just because it is built by robots doesn't mean it wouldn't bring jobs back. They'll still need people to build the robots, program the robots for each different product being created, maintain the robots, ship and organize the products, etc etc.
 
So let me ask this, why hasn't Google being as big as they are create tech that makes it so those specific patents don't apply to android? Its like they don't want to go away from Microsoft's patent trolling so instead of making ways to make those patents invalid to android they would rather pony up and pay Microsoft billions...
 
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