Microsoft (MSFT) Sues Samsung Over Unreceived Android Royalties

Microsoft Corporation (MSFT) filed a lawsuit against Samsung on Friday, claiming the South Korean smartphone maker refused to respect a 2011 signed patent-licensing-deal which relates to Samsung’s use of Microsoft’s IP in its Android smartphones and tablets.

In the lawsuit, filed in a Manhattan federal court, the software giant said that Samsung stopped making royalty payments last fall on patent licenses, and is refusing to pay interest for the delay, as required by their 2011 agreement, after Microsoft announced its intention to acquire Nokia’s Devices and Services business last year.

According to Microsoft, Samsung threatened to violate the agreement because it felt the Nokia deal, which was completed in April, breached its licensing agreement with Microsoft.

The Redmond, Wa.-based company denied the acquisition violated the previous agreement. In a blog post, David Howard, Microsoft’s deputy general counsel and corporate VP said, “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.”

In a statement, Samsung, who claims smartphone products sold by Microsoft after the Nokia deal are not covered by the licensing deal, said it was still reviewing the lawsuit and would “determine the appropriate measures in response.”

The heavily redacted Microsoft lawsuit seeks monetary recovery from Samsung but does not disclose the amount in dispute.

Shares of Microsoft closed at $42.86 on Friday.

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