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Microsoft: Samsung to clear the interest of $1 billion Android royalty

Microsoft and Samsung have had their issues over patents and royalties for quite some time now. As a recent development between the two tech giants, Microsoft has demanded a whooping $6.9 million interest from the Asian Smartphone maker. Samsung is already paying Microsoft $1 billion every year as a royalty over a dispute. The lawsuit over the patent of a Smartphone was ruled in favor of Microsoft and thus the company enjoys a yearly royalty from Samsung.Microsoft asks Samsung to clear of the interest amount of $6.9 million

According to the reports, Microsoft is looking forward to claim that the company did not breach the deal between Microsoft and Samsung. Instead, it was the Asian Smartphone maker who delayed the payments and even did not pay any interest over the amount during the later part of the time. As elaborated by the official, Samsung did pay the initial royalties along with the interests in time, but as soon as Microsoft announced the deal of buying out Nokia, Samsung held back the payments. (Update: Samsung is well off with Microsoft’s Nokia Deal, no disputes, only royalties!)

According to the version of the story on Samsung’s part, the deal was literally over as soon as Microsoft made a deal with another mobile manufacturing company. Although, Samsung eventually had to pay the royalties in due time, the company did not add any interests to it. Samsung has made no official comments in regard to the events of Friday.

This is not the scenario with just Samsung. Literally all the major Smartphone makers using Android platform have to pay a certain amount of royalties to Microsoft as Google Inc’s Android has been developed based on a few features of Microsoft and its hardwares.

Not only Samsung, even Dell has a deal with Microsoft over Android royalties. Earlier in March, Microsoft and Dell had announced that both the companies have signed a patent licensing agreement, where the latter one will pay the software giant royalties on sales of their devices running on Chrome OS and Android software. As of now, many other larger smartphone-makers such as HTC and LG already signed the similar deal to pay Microsoft a royalty fee on each handset they make with Google’s Android software, as Microsoft says that it may infringe its patents.

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About Wayne Murphy

Writer and specialized in Mobile Phones (iOS, Android, BB etc), who was with the TND team since it's inception. Other than Blogging, he is also pursuing his graduation on Business Management at CA, California University. All posts by Wayne

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