Saturday 4 October 2014

Microsoft makes $1B from Google software

Microsoft has a vast number of Android patent licensing
agreements with device makers worldwide, but a
Samsung court case has put a figure on exactly how
much money the software giant makes from Android.
Samsung paid Microsoft $1 billion in patent-licensing
royalties last year, a huge sum that has the pair locked
in a legal battle over contracts. Samsung originally
signed its patent deal with Microsoft in 2011, ahead of
its impressive dominance of Android shipments, but late
last year Samsung decided it was tired of paying on
time, or paying interest when a late payment was finally
made.
TWO TECH GIANTS BATTLE IN COURT
Microsoft has taken Samsung to court over the issues,
and the Korean company insists it wants to walk away
from the original deal because of Microsoft’s purchase of
Nokia’s phone business. Samsung claims the acquisition
invalidates the cross-licensing IP agreement, but
Microsoft doesn’t agree and wants the company to pay
$6.9 million in unpaid interest from last year. It’s clearly
an awkward court case, especially as Samsung
continues to build Windows-based smartphones,
tablets, and PCs.
With $1 billion in annual royalties at stake, Microsoft
seems confident it will force Samsung to pay what is
owed. "We are confident that our case is strong and that
we will be successful," Deputy General Counsel David
Howard said in a statement to Recode . "At the same
time, Microsoft values and respects our long partnership
with Samsung, is committed to it, and expects it to
continue." Microsoft may have convinced Samsung to
switch to Word following a visit from CEO Satya Nadella,
but a court will decide whether Samsung will pay up.

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