x PhoneArena is hiring! Reviewer in the USA
  • Hidden picShow menu
  • Home
  • News
  • Microsoft sues Samsung for not living up to terms of a cross-licensing pact

Microsoft sues Samsung for not living up to terms of a cross-licensing pact

Microsoft sues Samsung for not living up to terms of a cross-licensing pact
Today, Microsoft filed a lawsuit against Samsung in the U.S. District Court, Southern District of New York. Microsoft is seeking legal help in getting Samsung to pay Microsoft as per the terms of a contract between them. Ironically, Microsoft owns a number of patents related to the production of Android devices, and both companies entered into a cross-licensing agreement in 2011, to share each others' IP.

As Microsoft has pointed out, in the years since that contract was signed, Samsung has quadrupled its smartphone sales, and now is the world's leading supplier of these devices. The year that both sides signed the pact, Samsung had sold 82 million intelligent handsets. Three short years later, Samsung is on pace to sell 314 million units. As a result of this increase, Samsung's financial obligations to Microsoft from the contract, had increased sharply.

According to  David Howard, Corporate Vice President & Deputy General Counsel for Microsoft, Samsung was looking for a way out of the contract, and used Microsoft's purchase of Nokia Devices and Services as a reason to claim that the contract was no longer valid.

"We don’t take lightly filing a legal action, especially against a company with which we’ve enjoyed a long and productive partnership. Unfortunately, even partners sometimes disagree. After spending months trying to resolve our disagreement, Samsung has made clear in a series of letters and discussions that we have a fundamental disagreement as to the meaning of our contract."-David Howard, Corporate Vice President & Deputy General Counsel, Microsoft

Samsung has yet to make public its side of the story, something we will no doubt hear about as this case slowly, but surely, makes its way to a courtroom. First Apple, and now Microsoft. Could it be that Samsung has a problem getting along with others?

source: Microsoft via AndroidCentral

112 Comments
  • Options
    Close






posted on 01 Aug 2014, 19:43 5

1. Jinto (Posts: 436; Member since: 15 Jan 2014)


Wow, ms, just wow

posted on 01 Aug 2014, 20:09 19

5. 87186 (Posts: 274; Member since: 01 Aug 2014)


what are you "wowing" MS for? they have a contractual agreement with a company, and that said company is not living up to their end of the agreement. yet, you're "wowing" MS? hahaah makes sense.

posted on 01 Aug 2014, 20:16 10

7. tedkord (Posts: 12221; Member since: 17 Jun 2009)


Possibly, but we don't know that Samsung hasn't lived up to its contractual obligation. The court will decide that.

posted on 01 Aug 2014, 20:18

8. 87186 (Posts: 274; Member since: 01 Aug 2014)


sure.

posted on 02 Aug 2014, 09:43 1

82. sgodsell (Posts: 3890; Member since: 16 Mar 2013)


If I was Samsung. I would help Microsoft right now with the components they need. Start by adding special fees onto the components for the Good customers like Microsoft. Add a FY fee onto every part that Microsoft's purchases. Deliver sub-par components. What ever it takes to screw with Microsoft.

posted on 01 Aug 2014, 20:21 8

10. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


Actually we do, they paid late, and then didn't pay the penalties on the late payment. This is not rocket science here.

posted on 01 Aug 2014, 22:24 1

32. tedkord (Posts: 12221; Member since: 17 Jun 2009)


We don't know the terms of the contract. It's possible that MS voided the terms by their actions. All we know is MS side of the story so far. We don't even know if they actually were late.

posted on 01 Aug 2014, 22:35 4

34. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


I highly doubt MS would go to court with a fake late payment. That is tin-foil hat stuff right there.

If it turns out they lied, I will reference this post and say you were right.

This is not patent trial type of stuff, this is them going to the court with papers, with those papers all they have to do is show that they paid late to file. Samsung will 'try' to find the 'void' like you stated. But in the end. They paid late.

posted on 02 Aug 2014, 00:37 1

61. tedkord (Posts: 12221; Member since: 17 Jun 2009)


They may well have. The point is neither of us knows. Companies do to court all the time with disagreements over the terms of contracts. You and I have no idea which side is right.

posted on 01 Aug 2014, 22:00 10

30. jdoee100 (Posts: 334; Member since: 04 Jun 2013)


It seems PA already has decided even before the court. "First Apple, and now Microsoft. Could it be that Samsung has a problem getting along with others?" LOL, classic Alan. I'm surprised Alan didn't mention HTC here.

posted on 01 Aug 2014, 22:53 4

38. 0xFFFF (Posts: 3806; Member since: 16 Apr 2014)


"what are you "wowing" MS for? they have a contractual agreement with a company, and that said company is not living up to their end of the agreement. yet, you're "wowing" MS? hahaah makes sense."

I suppose you root for the mafia breaking the kneecaps of shop owners who don't pay their protection money -- even though they have an "agreement" with the mafia?

Microsoft is just a blight on the world -- nothing more than patent troll mafia.

posted on 01 Aug 2014, 23:10 6

40. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


Yes a tech company that has existed for 3 decades is patent trolling a company that is using patents and technology from that said company...please....mafia. If MS is the mafia, then google is the Nazi's?

posted on 01 Aug 2014, 23:27 9

48. 0xFFFF (Posts: 3806; Member since: 16 Apr 2014)


Microsoft is legendary for being a patent troll. They make more money off of Android phones than nearly all companies making Android phones, by parasitical taxation of the Android device market. That includes every single person who buys an Android phone/tablet/watch/etc.

As for Samsung:

"For over 70 years, Samsung has been dedicated to making a better world through diverse businesses that today span advanced technology, semiconductors, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Our flagship company, Samsung Electronics, leads the global market in high-tech electronics manufacturing and digital media."

Note that 70 years part. Note the breadth of industries of Samsung. This is a company that has been making things for a long time. If they had started filing US patents when Microsoft did, things would be very different.

posted on 01 Aug 2014, 23:50 6

56. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


If you think Samsung has not filed patents for years....you sir are wearing a tin foil hat.

Parasitical taxation?

You do know that without some of the ip's that MS holds, your android wouldn't even be able to do some basic functions right?

If anything android has been parasitic, android has stuck the bill to the OEM's. Google bought Moto thinking it would bolster its ip for fight, but there is just some things you cannot get around. Google is smart, sell the name Android, not the OS, so if our OS violates ip's etc, then the OEM has to deal with it. Even now Moto lost its battle and is paying MS, and the new Motorola Solutions is paying MS to use Android.

Oh by the way, the troll you keep wanting to call people that are on the side of patents that have been around before android was born, is under that bridge I have to sell you.

posted on 02 Aug 2014, 08:53 3

76. Ashoaib (Posts: 3229; Member since: 15 Nov 2013)


thats true... samsung came to realise the importance of patents very late... if they had started filling US patents long before others were filling, they might be the biggest patent holders

posted on 01 Aug 2014, 23:28 4

49. 87186 (Posts: 274; Member since: 01 Aug 2014)


hahahah if that helps you sleep at night.

posted on 01 Aug 2014, 23:37 2

51. 0xFFFF (Posts: 3806; Member since: 16 Apr 2014)


Using facts and helping keep BS at bay does help me sleep at night.

posted on 01 Aug 2014, 23:52 4

57. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


If you had facts to use...how about use some of samsungs facts:

“The fact that Nokia does not manufacture mobile phones any longer signifies that we cannot file a countersuit against it and we have to pay royalties to it. Besides, we are in no position to circumvent, because Nokia owns a large number of basic and standard patents.”

posted on 01 Aug 2014, 23:59 6

58. 0xFFFF (Posts: 3806; Member since: 16 Apr 2014)


Yes, the patent system is thoroughly screwed up and should be completely scrapped.

Patents produce no benefits for most of the people in the world. In fact, patents impose costs on people who should not have to bear those costs.

Microsoft as one of the world's biggest patent trolls, actively harms many people in the world who have nothing to do with Microsoft.

It's sad to see you throw in with Microsoft. They are a rotten company, a blight upon the world.

posted on 02 Aug 2014, 03:36 7

70. sbw44 (Posts: 433; Member since: 04 Dec 2012)


hahahahaaa, the patent system is screwed up just because its your favorite platform that's being sued! If Google/Samsung was suing MS/Nokia then you be all hail the patent system!

posted on 02 Aug 2014, 08:56 2

78. StraightEdgeNexus (Posts: 3689; Member since: 14 Feb 2014)


Same applies to you bro. :)

posted on 02 Aug 2014, 02:45 2

69. gregoryyy3 (unregistered)


Did you really just use the mafia as an example?

posted on 02 Aug 2014, 11:17 1

94. wax33 (Posts: 45; Member since: 06 Apr 2014)


MS broke contracts too when it felt the other part was getting a better deal because of changing economics. For example, with Nvidia.

posted on 01 Aug 2014, 20:12 1

6. TheWolfpacker (Posts: 44; Member since: 25 Feb 2014)


Why? Why are you wowing Microsoft this time?

posted on 01 Aug 2014, 20:30 3

14. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


I'm wondering what patent and legislation to they hold, that every Android Oems pay Ms...?

posted on 01 Aug 2014, 21:27 1

21. gazmatic (Posts: 795; Member since: 06 Sep 2012)


when the words are blue.... click on them... they are there for a reason... to answer questions like this

posted on 01 Aug 2014, 22:27 3

33. joey_sfb (Posts: 6003; Member since: 29 Mar 2012)


I don't give a horse s**t about patent and rights. My stand is always open competitions and consumer benefits.

Works for the past few centuries, why should this one any different.

posted on 01 Aug 2014, 22:41 2

35. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


Easy, there is software patents for file system types like fat16 and fat32, there is patents on how things actually run.

There is more, including the patent for your device to even hook up to a pc and be seen.

Also this is not new either, this has been going on before Samsung even was #1 in droid. Heck this is since 2010 and before type stuff.

And if you think android coming late to the game hasn't needed to license tech/ip/etc then I got a bridge to sell you.

posted on 02 Aug 2014, 08:27 1

75. WahyuWisnu (Posts: 1001; Member since: 29 May 2014)


The problem for MS were, once they FREE the price of WP, they can't charge samsung, HTC, etc for android, for the patent that were FREE in WP. This is called DUMPING / unfair business practice.

Samsung is smart, and understand this law. So, when microsoft keep asking samsung to pay, samsung say NO. Microsoft can take samsung to court, and MIGHT win this battle. But if microsoft do that, then, others android manufacture can also sue microsoft for UNFAIR BUSINESS PRACTICE.

So, by freeing WP, microsoft open a pandora box that will bring down their income.

posted on 02 Aug 2014, 23:45

106. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


You are misunderstanding patents and OS.

MS can give the OS free, and charge patent fees. Just like google does.

Also if you have the patent, you don't have to charge for it and can lawfully charge others to use it. So if the winos and ms holds the patents to say, filesystems that android uses, they don't have to charge for it. Because android is a 3rd party, they can charge all they want as long as it is 'fair'.

Want to comment? Please login or register.

Latest stories