Last Friday, Microsoft filed a lawsuit with Southern District Court ( NewYork ) to sue Samsung. The Korean electronics firm is believed to have violated the treaty rules signed three years ago between the two companies.
According to Microsoft, Samsung stopped paying royalties and refused to pay interest to Microsoft since last fall. Under the agreement signed in 2011, Samsung has to pay to use Microsoft intellectual property patents for smartphones and tablets. But ironically, Samsung violates these laws. Samsung felt "betrayed" when US technology firm bought Nokia's mobile business.
Microsoft quickly vetoed this move by Samsung. In a blog post, Microsoft Vice President David Howard said the real reason why Samsung stopped paying was because mobile device revenue had quadrupled since the signing of the treaty. Simply understood, increased device revenue means that the annual royalty fee for Microsoft also increases with the number of products sold by Samsung.
The case did not cover details of Samsung's debt amount. However, according to economic experts, the US technology company has annually collected billions of dollars in royalties thanks to the patent licensing agreement signed with Samsung.
In response to the incident, Samsung said it is still considering complaints. Samsung will implement " corresponding responses ".