Microsoft and Samsung yesterday announced that they have ended their contract dispute in U.S. court as well as the ICC arbitration. Terms of the agreement were not revealed.
“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.
Back story on the legal issue,
We all know that Microsoft has lots of patents licensing deals with lots of Android OEMs. It was previously estimated that Microsoft may be earning over billion dollars in licensing revenue each year from these patents. It was revealed that Samsung paid more than $1 billion to Microsoft as part of patent royalties and Microsoft filed a legal complaint against Samsung since they refused to pay royalties as per contract. In November last year, Samsung tried to break the contract with Microsoft. Also, they asked the court to put Microsoft’s lawsuit over smartphone patent royalties on hold while the Samsung pursues an arbitration proceeding in Hong Kong. But, Samsung’s request was rejected.