Samsung refuses to pay licenses to Microsoft after Nokia buyout

Samsung has issued a court filing regarding its collaboration with Microsoft on Windows Phone and states that it refuses to fulfill its end of the deal as it now sees the software giant as a direct competitor. The business collaboration agreement between the two companies sees Samsung pay Microsoft north of $1 billion in patent royalties and $6.9 million interest due to payment delays. Microsoft took action in early August in an attempt to collect the cash.

However, that's unlikely to happen if the New York federal court, where the filing is made, decides in favor of Samsung. The company says that because of the Nokia acquisition, Microsoft violated its 2011 deal with Samsung. According to the deal, Samsung had to pay Microsoft royalties in exchange for a patent license on its Android smartphones.

Because Samsung is also making Windows Phone devices and shares confidential business information with Microsoft, the Redmont company agreed to reduce the royalty payments. Acquiring Nokia has made Microsoft a direct hardware competitor to Samsung and the South Koreans claim this will create problems with US antitrust laws for the software giant.

"The agreements, now between competitors, invite charges of collusion," Samsung said in the filing. However, Microsoft won't give up and is "confident" in the strength of its case. We'll continue to cover the development of the court case between the two companies and inform you if Microsoft will get its patent licensing fees or if Samsung will save $1 billion.

Source | Via