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Microsoft sues Samsung

posted Aug 4, 2014, 7:54 PM by Barny CK
Microsoft is suing Samsung for refusing to pay interest incurred after making a late royalty payment. This is the first time Microsoft has launched legal action against the Korean tech giant. The royalties involved are related to patents held by Microsoft that are being used for Google's Android. Under an agreement entered by the two parties in 2011, Samsung pays Microsoft an undisclosed fee for every gadget using the Android OS. 

According to Microsoft, in 2013, Samsung blocked a second payment to Microsoft, citing possible contract breaches by Microsoft when Microsoft acquired Nokia. Although Samsung eventually paid the royalty fee, it didn't pay for the interest incurred from late payment. Microsoft have licensing fee agreements with more than 25 companies including HTC, Acer, ZTE and Nikon and fears Samsung's refusal to pay may start a precedence for other companies to follow.