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Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

October 3, 2014 at 6:01 PM

Microsoft says Samsung owes it $6.9 million over patent agreement

Microsoft says Samsung owes it more than $6.9 million in interest for late payments on a royalty agreement reached between the two companies.

That’s according to a court document unsealed Friday in U.S. District Court in the Southern District of New York.

The interest would be for a late payment of more than $1 billion that Samsung paid to Microsoft last year, according to the document.

The document stems from a lawsuit Microsoft filed in August against Samsung, seeking to enforce two agreements.

In one of the agreements, Samsung agreed to pay royalty to Microsoft for each Android phone it produces. Microsoft contends that certain features in the Android operating system uses patented Microsoft technology. The software giant has reached agreements with a number of hardware manufacturers in which the manufacturers pay Microsoft royalties for each Android device they produce.

Initially, Samsung made the royalty payments.

But last year, Samsung, which pays Microsoft once a year, was late with its payment and did not pay Microsoft interest for those late months. And Microsoft is concerned Samsung will not make its payments in the future.

The second agreement between the two companies is a business collaboration agreement aimed at promoting the development and sale of Windows smartphones and tablets by Samsung.

Microsoft says Samsung has suggested that Microsoft’s purchase of Nokia’s phone business breached the Redmond software giant’s business collaboration agreement with Samsung.

Microsoft, in turn, is concerned that Samsung may use Microsoft’s acquisition of Nokia’s phone business as an excuse to break both the licensing and business collaboration agreements.

“We are confident that our case is strong and that we will be successful,” David Howard, Microsoft’s deputy general counsel, said in a blog post.

Samsung could not immediately be reached for comment.

Microsoft is seeking the $6.9 million in interest and a court judgment that  its acquisition of Nokia’s phone business does not invalidate its agreements with Samsung.

Comments | More in Microsoft | Topics: patent, samsung

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