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Samsung paid Microsoft over $1 billion last year in royalties to use the latter's technology in its Android-powered devices, according to a recent filing in the Microsoft vs. Samsung US District Court patent-royalty case, which was filed this summer.
Back in 2011, Samsung entered into a patent-licensing contract with Microsoft, under which it agreed to make patent royalty payment to the latter for a period of seven fiscal years, in exchange for the right to use patented Microsoft technology in its Android smartphones and tablets.
In August this year, Microsoft dragged Samsung to court for failing to pay its year-two royalty payment on time, as well as interest for the same. On the other hand Samsung, which is one of the many companies paying the software giant Android patent licensing fees, is claiming that Microsoft's acquisition of Nokia's handset business has invalidated the agreement, and is refusing to make any further payments.
Unsurprisingly, Microsoft doesn't agree with the argument, and is seeking $6.9 million in damages, a figure which was calculated based on the $1 billion that the South Korean company owed Microsoft in royalties as of August 29, 2013.
Microsoft hopes that Samsung will pony up the money. "We are confident that our case is strong and that we will be successful", said Deputy General Counsel David Howard, adding that the company values and respects its long partnership with Samsung, is committed to it, and expects it to continue.