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Samsung does not want to pay Microsoft royalties for Android as part of 2011 deal, citing anti-trust issues

Written by Andre Yoskowitz (Google+) @ 01 Nov 2014 17:04 User comments (5)

Samsung does not want to pay Microsoft royalties for Android as part of 2011 deal, citing anti-trust issues In 2011, Samsung and Microsoft signed a licensing deal in which the South Korean giant agreed to collaborate on new Windows Phone products for a discount on the amount it would have to pay Microsoft for Android phone sales.
Last year, with Samsung selling over 300 million devices, those royalties topped $1 billion but allegedly Samsung was late with the payment and Microsoft sued them asking for about $7 million in interest.

Samsung has now filed with the court claiming that the licensing deal should be null and void due to Microsoft's acquisition of Nokia, which in their words makes the company a "direct hardware competitor." In the deal, Samsung had agreed to share confidential business info with Microsoft that it clearly cannot do anymore given that Microsoft is in the smartphone business for themselves. If they continue to share secrets, there could be a violation of U.S. antitrust laws, Samsung added. "[T]he agreements, now between competitors, invite charges of collusion," Samsung concluded.

Microsoft has said their case is strong, and they expect to win in court. The company collects patent royalties from over 75 percent of Android manufacturers, and those figures are usually higher than what they make in Windows Phone sales.

Source:
Reuters

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5 user comments

11.11.2014 23:01

?????????????

Wait a minute what the you collect on android patents patents that are held by google how the heck does that work???

Android is google not microsoft


22.11.2014 8:45

Originally posted by megadunderhead:
?????????????

Wait a minute what the you collect on android patents patents that are held by google how the heck does that work???

Android is google not microsoft



MS has been collecting money almost from the start. How long have you been here at AD and have not read anything about this?? $5-10 per device is roughly the going rate.

http://www.afterdawn.com/news/article.c...android_patents

http://www.afterdawn.com/news/article.c..._acer_viewsonic

http://www.afterdawn.com/news/article.c...ver_patent_riff

34.11.2014 15:16

It's an Antitrust thing and totally outta whack! There is NO WAY to spin this as a fair business deal.

It's simply intended to balance out the loss that MS will incur for having joined the mobile phone market (w/a GOOD OS) way too late if you ask me.

US gov't at its finest..........NOT

45.11.2014 22:53

It is still not too late for the whole Android system to switch base to BSD. Could do away with royalty business altogether. Then it can really kick ass!

56.11.2014 3:18

Why is it that every time anybody accuses Microsoft of anything at all, it's time to pile onto them and make them the villain of the piece again? Samsung are hardly a small independent, and agreed the deal - how do they think anyone will ever trust their word ever again if they decide to renege on an agreement? The furor that would ensue if MS reneged on a legal deal would be something to behold.
And then there is Apple. Everything they do is hailed as some smart idea or some neat thing that will stick it to MS. Yet they abuse their position dreadfully, and nothing is ever done about that.




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