Microsoft claims that Samsung threatened to withhold royalty payments related to the Android operating system and is suing them over it according to a report from the AP. It's the end of a deal that Microsoft and Samsung made back in 2011 where Samsung would pay royalties on Android patents and allow cross-licensing of patents.
Microsoft's patents are used by tech companies all over the world and its a steady stream of income that helps keep Microsoft the giant it is. It's not too surprising therefore that it is willing to go to court over it. There's far too much money at stake for for the company to let it go. $2 billion a year according to AP, and probably set to grow as that Android system takes up a bigger and bigger share of the mobile market. Right now, there are over 25 companies using the patents.
"We don’t take lightly filing a legal action, especially against a company with which we’ve enjoyed a long and productive partnership," wrote David Howard, Microsoft's deputy general counsel in a blog post on Friday. "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."
According to Howard, it all started after Microsoft acquired Nokia. Apparently the royalty payments came later and then just stopped. Despite discussions and efforts to resolve things out of court, Microsoft apparently feels it has to turn to the justice system to get it all worked out.
"Microsoft and Samsung have a long history of collaboration," Howard wrote. "Microsoft values and respects our partnership with Samsung and expects it to continue. We are simply asking the Court to settle our disagreement, and we are confident the contract will be enforced."
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