US: Samsung hits back at Microsoft in $1B royalty spat

South Korea-based Samsung is reportedly fighting to avoid paying $1 billion to US-based Microsoft in patent royalty payments after Microsoft sued the company earlier this year to collect funds.

Reports say Samsung wants a federal judge to invalidate a collaboration agreement made between the companies, a contract that included Samsung’s payment of patent royalties to Microsoft.

Microsoft has made several similar agreements with various smartphone makers to collect royalties from the use of its Android operating system on smartphones.

Microsoft filed a lawsuit against Samsung earlier this year accusing Samsung of violating terms of their royalty agreement; among the accusations was that Samsung failed to pay $1 billion in annual patent fees.

Now, Samsung is fighting back and seeking an invalidation of the agreement on grounds that Microsoft’s takeover of Nokia in April violated their initial collaboration agreement made in 2011.

Microsoft acquired the wireless phone assets of Nokia for $9.4 billion. That takeover, Samsung argues, places Microsoft in direct competition with Samsung and the South Korean firm is now allowed to terminate their agreements on collaboration and patent royalty.

According to reports, court documents show Samsung also argues that if it continues to pay royalties to Microsoft following the Nokia takeover, Samsung would be in violation of antitrust law. “The agreements, now between competitors, invite charges of collusion,” Samsung said in its court filing.

Full content: Tech Times

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