Samsung May Try to Escape Paying $1Billon to Microsoft

Posted by at 7:53 am on November 3, 2014

Samsung claims that if it honors a 2011 patent-licensing agreement with Microsoft it could be charged with collusion. The argument is the latest from Samsung, which owes Microsoft $1 billion in patent licensing fees, plus another $6.9 million in interest.

Several technologies found in the Android operating system are patented by Microsoft. Nearly all Android device makers pay Microsoft to license those patents in their smartphones. Samsung agreed to do the same in 2011, though Microsoft cut it a bit if a break after Samsung agreed to continue to develop devices running Microsoft’s Windows Phone platform.

Part of the agreement entails Samsung sharing sensitive inside information with Microsoft. Samsung now contends that Microsoft’s acquisition of Nokia’s handset business earlier this year puts them into direct competition. It says if it pays the licensing fees, it could be seen as colluding with Microsoft in violation of the law.

Microsoft sued Samsung over the unpaid licensing fees earlier this year and believes it has a strong case.

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