Microsoft and Samsung are rarely thought of or mentioned in the same conversation, unless that conversation is happening around this idea of competition. The two primarily fight in competing operating system markets on smart devices.
Microsoft well-known, and well-established for utilizing Windows operating system in their devices, and Samsung for their Android devices that have landed the Galaxy line atop the world of Android.
However, thanks to the court filings of the two in a case that is being pursued by Samsung – it was noted that the company paid $1 billion in patent-licensing royalties last year. The legal battle stems from contracts that were signed in 2011. One a cross-licensing agreement and the second a business collaboration agreement.
Though Microsoft initiated the litigation over the issues due to Samsung’s failure to pay the agreed terms that were made official years ago, Samsung claims that the Nokia acquisition nullifies their agreement. Microsoft is going after $6.9 million in unpaid interest from last year.
There are $1 billion in annual royalties sitting on the table here, and this could be a very big reason why Samsung and Microsoft are both fighting the terms so hard. Microsoft believes that they have enough evidence, and enough grounds to be “confident” that they will win the case that they have brought against Samsung.
However, both sides seem to be equally strong minded in their beliefs that the fight is one that will be won by both sides respectively. The case is a bit strange though. On the Microsoft website David Howard – who is the Deputy General Counsel said that “At the same time, Microsoft values and respects our long partnership with Samsung, is committed to it, and expects it to continue.”
Overall, it’s a bizarre turn of events for two companies that have done a lot of working together in the past on Windows devices, whether they be smartphones, tablets or laptops. It will be interesting to see how these court proceedings impact the future of the brand, and companies that are at odds with each other, yet working with each other as well.
Samsung may have to pay up if they wish to continue their agreement with Microsoft – otherwise, they may have to leave the agreement entirely.