New York federal court unsealed a lawsuit on Friday, which was filed by Microsoft Corp. (NASDAQ: MSFT) against Samsung Electronics (005930.KS) over an unsettled dispute of delayed payments and its interest.
Microsoft is asking for an interest of $6.9 million from Samsung, as they made a $1 billion from South Korean smartphone giant. Samsung is one of the partners that have signed licensing agreements with Microsoft. LG and HTC also signed agreements between 2010 and 2012. The Redmond giant said that Samsung signed their Android licensing deal in 2011, just before drastic rise in Android market share.
However, the smartphone giant failed to deposit the payment on time and also the interest that is applicable on that. Microsoft is claiming an interest of $6.9 million from Samsung, as the company was caught for not paying the required amount on time.
“After months of painstaking negotiations by two of the biggest and most sophisticated companies in the world, in 2011 Microsoft and Samsung agreed on the terms of a patent license agreement and a separate business collaboration agreement, the latter of which is unique to our relationship with Samsung…Samsung has suggested that Microsoft has breached the business collaboration agreement.” David Howard, Deputy General Counsel of Microsoft, said, “We are confident that our case is strong and that we will be successful. At the same time, Microsoft values and respects our long partnership with Samsung, is committed to it and expects it to continue.”
After the announcement of the ‘Nokia deal’ in September 2013, Samsung initially don’t want to make the payments, arguing, “the Nokia deal violated its licensing agreement with Microsoft.” It eventually paid late without adding interest.
The lawsuit in U.S. District Court, Southern District of New York is Microsoft Corp vs. Samsung Electronics Co Ltd, 14-6039.Tags: lawsuit, Microsoft, new york, samsung