Feb 09 AT 8:14 PM Nick Sarafolean 1 Comment

Samsung and Microsoft are ending their royalties dispute

Microsoft Samsung Image via: http://www.capitalwired.com/microsoft-claims-interest-samsung-court/23498/

Samsung and Microsoft have agreed to end their royalties dispute. The two companies went at it last year over a contract that forced Samsung to pay patent royalties for Android to Microsoft. Nearly all manufacturers using Android have a similar contract with Microsoft, but Samsung has been looking for a way out. The search for a loophole is entirely understandable; Samsung paid over $1 billion to Microsoft in 2013 alone.

Samsung claimed that Microsoft’s purchase of Nokia’s hardware division made Microsoft a hardware manufacturer, which would free Samsung from the contract. Microsoft disagreed and took Samsung to court over the issue. The two companies have settled the matter out of court with a confidential agreement that leaves us all in the dark as to how much Samsung will now pay. That’s not an issue, though, as we’re simply glad to see the petty dispute dropped.

Show Press Release
“Samsung and Microsoft are pleased to announce that they have ended their contract dispute in U.S. court as well as the ICC arbitration. Terms of the agreement are confidential.” – Samsung’s Jaewan Chi, Executive Vice President and Global Legal Affairs & Compliance Team and Microsoft’s David Howard, Corporate Vice President and Deputy General Counsel.

Via: Samsung

Source: Microsoft

A nerd at heart, Nick is an average person who has a passion for all things electronic. When not spending his time writing about the latest gadgets, Nick enjoys reading, dabbling in photography, and experimenting with anything and everything coffee. Should you wish to know more about him, you can follow him on Twitter @nsarafolean.

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  • stanglifemike

    You said “Nearly all manufacturers using Android have a similar contract with Microsoft”, so shouldn’t those manufacturers be able to get out of their contracts as well?