Microsoft slaps Samsung with lawsuit over interest due

Brittany A. Roston - Oct 3, 2014, 8:20pm CDT
Microsoft slaps Samsung with lawsuit over interest due

Patent lawsuits are nothing new, but there has been a lull in the legal battles recently, something that has come to a screeching halt with the revelation that Microsoft has sued Samsung. The reason? The company says that Samsung owes it a relatively hefty sum of money in the form of unpaid interest.

The lawsuit came to light today when it was unsealed, and under it Microsoft is looking for Samsung to shell out $6.9 million in interest it was allegedly supposed to pay from 2013. Rather, according to the lawsuit, Samsung paid only $1 billion last year.

According to the lawsuit, Samsung has breached a contract that hails from 2011, when the two companies agreed on patent licensing that would require Samsung to pay patent royalty payments to Microsoft for seven years. The deal fell afoul last year, according to the company, when Samsung stopped paying on time and said no about paying interest on late payments.

Samsung is reportedly threatening to stop payments altogether, the reason revolving around Microsoft’s acquisition of Nokia. Microsoft argues that “the license rights granted by Samsung under the Agreement cover the subsidiaries and assets of the business units” nabbed via the acquisition.

Simplifying it, Microsoft says that the Nokia acquisition in no way lets Samsung off the hook when it comes to royalty payments. Samsung has not officially responded to the lawsuit.

SOURCE: Re/code


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