Samsung has initiated an arbitration proceeding against Microsoft in Hong Kong on Tuesday regarding the patent royalty dispute. Samsung has asked the International Court of Arbitration in Hong Kong “to resolve a dispute concerning the calculation of success credits.” Microsoft, on the other hand, believes that the appropriate venue to interpret business collaboration agreement is New York. This arbitration against Microsoft came just days after they filed an amendment complaint in its New York lawsuit asking the judge to rule that Microsoft didn't violate the terms of agreement of a business collaboration with Samsung. This step from Samsung is being seen as a counter offensive which might complicate the lawsuit case filed in New York.
Back in August, Microsoft had filed a federal lawsuit against Samsung in New York stating that they were refusing to pay the patent royalty after they announced the acquisition of Nokia. Microsoft recently revealed that Samsung paid them $1 billion as patent royalty but failed to pay $6.9 million in interest. Microsoft has successfully argued that Android operating system uses some of its technologies so most of the device vendors, including Samsung, who use Android will have to pay patent fees to Microsoft.
