Samsung is claiming that Microsoft has violated the deal between the two after it completed the Nokia acquisition earlier this year, as per the latest report from Reuters. The South Korean electronic giant is hence defending its action of not paying the royalties to Microsoft as the Nokia deal makes the software giant a direct hardware competitor.
Samsung also claimed that paying the royalties would have further caused antitrust problems. In August this year, Microsoft filed a patent lawsuit against Samsung claiming that the company has stopped making royalty payments on time last fall and is refusing to pay interest for the delay. The software giant then claimed in October that Samsung owes it $6.9 million in unpaid interest.
Samsung said it agreed to pay Microsoft Android patent license royalties in 2011, but the deal also stated that Samsung would develop Windows phones and share confidential business information with Microsoft. If Samsung were to sell a certain number of Windows phones, then Microsoft would reduce the Android royalty payments, added the Reuters report.
Moreover, the company has not only asked the court to dismiss Microsoft’s claims but also to compensate Samsung’s damages for “Microsoft’s breach of the covenant of good faith and fair dealing” after the Nokia acquisition. Meanwhile, Microsoft said in a statement that it is “it confident that our case is strong” and will succeed.