Microsoft Says Samsung Owes $6.9 Million In Unpaid Interest

Posted: Oct 4 2014, 1:52pm CDT | by , in News | Other Stuff

 

 Microsoft says Samsung owes $6.9 million in unpaid interest
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Samsung must pay interest on more than $1 billion in royalty payments which it delayed in protest at Microsoft's planned purchase of rival Nokia's handset business.

A lawsuit unsealed by a New York federal court on Friday has revealed that Microsoft Corp (MSFT.O) is demanding $6.9 million interest from Samsung Electronics in what appears to be a dispute over smartphone patent royalties. According to Microsoft, the court should be ruling that the company wasn’t involved in any breach of agreement with Samsung. Not just that but Microsoft is adamant on their demand that Samsung is supposed to pay interest on more than $1 billion in royalty payments which it delayed in protest at Microsoft's planned purchase of rival Nokia's handset business.

The redacted version of the lawsuit which was filed by Microsoft in August stated that Samsung made royalty payments on time to Microsoft during the first fiscal year after they signed their 2011 agreement. However, another payment was due on Samsung’s part and it refused to go ahead with it after Microsoft finalized its deal with Nokia in September. Samsung based its argument stating that Nokia deal breached its licensing agreement with Microsoft and this is why the payment got delayed and it was made without any interest figure.

Samsung was requested to comment on the situation but it didn’t do so immediately. Microsoft has based its stance on the fact that Google Inc's (GOOGL.O) Android mobile system uses some of its technology and because of that many hardware producers such as Samsung have agreed to pay patent royalties on Android handsets.

source: microsoft, via

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<a href="/latest_stories/all/all/32" rel="author">Ahmed Humayun</a>
Ahmed Humayun is a technology journalist bringing you the hottest tech stories of the day.

 

 

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