updated 12:23 pm EDT, Sat August 2, 2014
Samsung claiming MS/Nokia deal negates 2011 licensing agreement
Microsoft has launched a lawsuit against longtime licensee Samsung, alleging that the Korean company has stopped paying royalties for Android-related patents. According to the court filing and Samsung itself, Samsung stopped making the payments from the 2011 lawsuit-ending agreement after Microsoft entered into a deal to purchase Nokia.
"After becoming the leading player in the worldwide smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft," said Microsoft's deputy counsel David Howard.
The agreement, signed in 2011 to end a patent war between the two companies, works almost uniformly in Microsoft's favor and saw Samsung both pay royalties for allegedly using Microsoft patents in Android, as well as helping to develop and market Windows Phone hardware. Exact terms of the deal weren't discussed, but Google called the deal 'extortion.'
Howard continued the filing, saying "curiously, Samsung did not ask the court to decide whether the Nokia acquisition invalidated its contract with Microsoft, likely because it knew its position was meritless." Microsoft is seeking a restart of the payments, interest on missed payments, and an injunction on Samsung seeking damages or any other relief related to the Nokia acquisition.
Samsung hasn't outright denied the claims, and says that "we will review the complaint in detail and determine appropriate measures in response."