Microsoft sues Samsung over late payment of Android royalties – update

Microsoft has filed a lawsuit against Samsung for being late in paying royalties for the use of patents. Samsung has been paying royalties to Microsoft for years per Android device sold.

In a statement, Microsoft explains that with the lawsuit, in which the charges have been filed in a New York court, it wants to keep Samsung to its contract. The two parties entered into a contract in 2011 whereby it was agreed that Samsung would pay Microsoft an amount for each Android device sold, in exchange for the use of the latter’s patents.

However, Samsung has been late in paying the royalties since the end of last year, Microsoft said. By going to court, the company wants to force the Korean manufacturer to pay on time again and to pay interest on the delayed payments. Microsoft states that months of negotiations have preceded it, but that Samsung has “changed the interpretation of the contract”. Specifically, Samsung would have seized the opportunity of Microsoft’s acquisition of Nokia’s telephone business to no longer adhere to the contract.

In a response to The Verge, Samsung said it was studying Microsoft’s lawsuit, but no specific comment was made. As a result, it is not yet clear why Samsung thinks the acquisition of Nokia’s telephone branch will change the contract for Android royalties.

Several companies have signed a royalty contract with Microsoft. This allows them to use certain patents in their Android devices and avoid being sued for patent infringement. Samsung is rumored to pay Microsoft about $15 per device sold. In addition to Samsung, companies such as HTC, Dell and LG have entered into agreements with Microsoft. Dozens of manufacturers are said to have concluded deals with the Redmond company regarding patent use.

Update 2:27 PM: Microsoft has informed Android Police in a statement that it concerns Samsung’s late payment of royalties, instead of non-payment. The article has been adapted accordingly.