The court battle regarding patent contract rights between the technological giants – Samsung and Microsoft has at last seen the light of the day and has been settled, as confirmed by Microsoft on Monday. However, the terms of settlement has been kept confidential.
The court battle ensued last year at the federal court in New York, when Microsoft accused Samsung of breaching the contract terms of their collaborative agreement by initially refusing to pay their royalty payments. They had refused it even though Microsoft had officially announced their intentions over acquiring Nokia’s handset business in September, 2013.
The lawsuit filed claimed that Samsung was indebted to pay $6.9 million (approximately 42 crores) as interest on the more than $1 billion (approximately 6200 crores) patent loyalties they had, which they delayed in paying up. On the other hand, Samsung had claimed that Microsoft’s Nokia acquisition violated their 2011 collaboration deal.
According to Samsung’s arguments, they had agreed to pay all the remaining loyalties in exchange for a license which would cover all phones running on Google’s Android system and had also gone to the extent of developing phones with Windows and share confidential business information. But once Microsoft acquired Nokia and became their direct market competitor, they backed off. Because of anti-trust issues, Samsung refused to share sensitive information.
In 2011, in accordance to estimated analysis, Microsoft charged $5 per Android-based handset HTC sold according to a patent agreement and that it was considering charging $12.50 per handset from other makers who weren’t under their agreement contract. This data however, hadn’t been confirmed or negated by Microsoft themselves.
From now, if the $5 price per Samsung handset sold gets applied, Samsung will end up paying around $1.6 billion (approximately 9930 crores) every year, in accordance to Samsung’s total sale of 318 million handsets in 2014.