The computer giant Microsoft took legal action against Samsung on the 1st of August 2014. The American company accuses Samsung of not respecting the terms of the patent licensing contract which was signed in 2011. The deal refers to Samsung being allowed to use the Microsoft IP for its smart phones and tablets running on the Android operating system.
The legal action was taken at the Manhattan federal court. Microsoft claims that the Korean manufacturer ceased the royalty payments for the patent license in the autumn of 2013. Moreover, Samsung does not want to pay interest rates for this delay, although this issue was stipulated in the 2011 contract. All these problems appeared after Microsoft had announced its intention to buy the Devices and Services division belonging to Nokia.
The American company said that Samsung issued threats regarding the violation of the contract because it had considered that the Nokia takeover was in fact a breach in the agreement signed with Microsoft.
However, Microsoft does not consider that the acquisition violates any previous contract and agreement. David Howard, the deputy general counsel of Microsoft declared that after months spend on trying to find a proper solution for the disagreement, Samsung had made it clear that the two companies had totally different views on the meaning of the contract they signed.
On the other hand, Samsung says that the smart phones which have been commercialized by Microsoft and Nokia do not respect the licensing agreement. The company said that it would take the appropriate legal measures to respond to Microsoft’s accusations.
Microsoft asks for money recovery from the Korean company; however the amount of money required has not been made public.