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of the contract, and used Microsoft's purchase of Nokia Devices and Services as a reason to claim that the contract was no longer valid.


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

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103 Comments

1. Jinto

Posts: 436; Member since: Jan 15, 2014

Wow, ms, just wow

5. 87186

Posts: 312; Member since: Aug 01, 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.

7. tedkord

Posts: 17312; Member since: Jun 17, 2009

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

8. 87186

Posts: 312; Member since: Aug 01, 2014

sure.

82. sgodsell

Posts: 7218; Member since: Mar 16, 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.

10. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

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

32. tedkord

Posts: 17312; Member since: Jun 17, 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.

34. elitewolverine

Posts: 5192; Member since: Oct 28, 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.

61. tedkord

Posts: 17312; Member since: Jun 17, 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.

30. jdoee100

Posts: 334; Member since: Jun 04, 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.

38. 0xFFFF

Posts: 3806; Member since: Apr 16, 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.

40. elitewolverine

Posts: 5192; Member since: Oct 28, 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?

48. 0xFFFF

Posts: 3806; Member since: Apr 16, 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.

56. elitewolverine

Posts: 5192; Member since: Oct 28, 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.

76. Ashoaib

Posts: 3276; Member since: Nov 15, 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

49. 87186

Posts: 312; Member since: Aug 01, 2014

hahahah if that helps you sleep at night.

51. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

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

57. elitewolverine

Posts: 5192; Member since: Oct 28, 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.”

58. 0xFFFF

Posts: 3806; Member since: Apr 16, 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.

70. sbw44

Posts: 433; Member since: Dec 04, 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!

78. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

Same applies to you bro. :)

69. gregoryyy3 unregistered

Did you really just use the mafia as an example?

94. wax33

Posts: 45; Member since: Apr 06, 2014

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

6. TheWolfpacker

Posts: 44; Member since: Feb 25, 2014

Why? Why are you wowing Microsoft this time?

14. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

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

21. gazmatic

Posts: 807; Member since: Sep 06, 2012

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

33. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

35. elitewolverine

Posts: 5192; Member since: Oct 28, 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.

75. WahyuWisnu

Posts: 1001; Member since: May 29, 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.

106. elitewolverine

Posts: 5192; Member since: Oct 28, 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'.

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