Microsoft has announced through its official blog that they have filed a legal complaint against Samsung in a U.S. District Court, claiming that the Korean giant has violated a patent-licensing contract which was originally signed in September 2011. As per Microsoft, Samsung had breached the contract when it failed to make a recent royalty payment on time, and also refused to pay interest on its late payment starting September 2013.
Microsoft holds patents of certain technologies that are used in Android such as methods for rendering multiple windows in a web browser. Similar to many other Android device manufacturers, Samsung voluntarily entered into this contract with Microsoft to cross-license IP. Microsoft states that this patent deal has been extremely beneficial for both parties. As per this deal, Samsung had to pay Microsoft an undisclosed amount for each Android phone and tablet that it sells. Analysts estimated last year that Microsoft collects around $2 billion annually from patent fees on Android devices.
David Howard, Corporate Vice President & Deputy General Counsel, has further explained in a blog post that Samsung is using Nokia's acquisition by Microsoft as an excuse to dodge this contract. With this complaint, Microsoft is asking a judge to clarify that Nokia's acquisition doesn't disprove its licensing agreement with Samsung.
