Microsoft may have burnt its fingers by dabbling into the mobile business, however the Redmond based company is raking in tons of money from everyone else. Microsoft is the leader in software and wants to focus on hardware to stay in the race with its competitors.
However the company’s hardware is not going too well and its mobile software continues to be a money spinner. The news is that Samsung has paid Microsoft $1 billion in patent royalties. However the South Korean electronics giant is seeking to end the payments.
Microsoft is already raking in billions in the form of Android Patent Licenses and it is the same with Samsung also. Even if hardware wise Microsoft has hit a dud, the $1 billion will surely help to pay off the Surface Inventory which Redmond had written off last year.
Way back in 2011 Samsung and Microsoft had penned an agreement. Samsung was a small player in the crowd. However Samsung struck gold and is now one of the biggest makers of smartphones in the world.
Samsung has many devices selling more handsets than any other and having a vastly bigger range of devices. Samsung is also locked in a legal battle with Apple and has lost a couple of case. Samsung prefers not paying for other people’s technology and is once again trying to get out of a deal.
This leaves Microsoft with no other option but to go to the courts asking for the South Korean giant to shell out $6.9 million it still owes from last year and continue this agreement.
Microsoft Deputy General Counsel David Howard said:
”We are confident that our case is strong and that we will be successful. At the same time, Microsoft values and respects our long partnership with Samsung, is committed to it, and expects it to continue.”
Samsung on the other hand counters with the logic that Microsoft’s acquisition of Nokia nullifies the cross licensing agreement and so it should not have to pay.
In the bizarre turn of the events, both Microsoft and Samsung seem to be determined to take on each other. However there are also talks that Samsung may settle and move away as it has already established as a strong smartphone manufacturer.