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. In the recent court filing from Microsoft in the U.S. District Court in the Southern District of New York, it was revealed that Samsung paid more than $1 billion to Microsoft as part of patent royalties. Microsoft has already filed a legal complaint as part of the ongoing contract dispute with Samsung.
As we said at the time we filed our complaint, we began this case for two primary reasons. First, we’ve asked the court to resolve a contract dispute with Samsung. After months of painstaking negotiations by two of the biggest and most sophisticated companies in the world, in 2011 Microsoft and Samsung agreed on the terms of a patent license agreement and a separate business collaboration agreement, the latter of which is unique to our relationship with Samsung and, as explained in paragraph 35 of the complaint, was aimed at promoting the development and sale of Windows smartphones and tablets by Samsung. Samsung has suggested that Microsoft has breached the business collaboration agreement. We disagree, and that’s why we asked the court to rule that Microsoft is not in breach. Second, Microsoft has asked for $6.9 million in damages due to unpaid interest from last year.
Microsoft is confident that their case is strong and that they will be successful. At the same time, Microsoft values and respects their long partnership with Samsung, is committed to it, and expects it to continue.