Samsung and Microsoft bury the hatchet over Android royalty payments

Samsung and Microsoft have come to an agreement over Samsung's use of the Android operating system and royalties owed to Microsoft. The agreement covers disputes being heard in U.S. Courts and those being heard in arbitration internationally. While there is no dispute about Google's ownership of the Android operating system, Microsoft owns some of the patents used in the production of Android powered handsets. Back in 2013, it was estimated that these patents could earn the company the princely sum of $8.8 billion in royalties a year by 2017. Both Samsung and Microsoft announced today's agreement on their corporate blogs.

Last year, Microsoft accused Samsung of being late with a royalty payment, and demanded interest on the late payment. Microsoft took Samsung to court, seeking payment of $6.9 million which it says was the interest Samsung owed it for being late with the royalty check. A court filing indicated that Samsung felt that Microsoft's purchase of Nokia Devices and Services somehow meant that it wouldn't have to continue with a contract that both signed in 2011 and which runs through 2019.

The terms of the agreement were not disclosed. Microsoft has reached royalty agreements with other Android smartphone producers like contract manufacturer Hon Hai, Dell and ZTE.

source: WSJ