Microsoft Corporation (MSFT) Earned $1 Billion from Samsung in Android Device Sales

Microsoft (MSFT)

Innovation is the backbone of technology. That’s something that has been made true by Microsoft Corporation (NASDAQ:MSFT) after the company earned a sum of $1 billion in 2013 in patent royalties from Samsung Electronics Co Ltd (ADR) (LON:BC94).

You may be wondering what it is that Samsung Electronics Co Ltd (ADR) (LON:BC94) paid for. Well, it’s for a technology that’s integrated in Google Inc.’s Android operating system. The world’s largest software producer had come up with a new technology which it then registered; an innovation that has made it easier for users to carry out several functions. One of the things in the patent is a technology that allows users to view multiple windows in a browser.

Microsoft (MSFT)

The law therefore demands that if a company sells a device that uses Android OS, Microsoft Corporation (NASDAQ:MSFT) is entitled to royalties. So if you see Samsung Electronics Co Ltd (ADR) (LON:BC94) selling out tablets and smartphones that use Android, know that the Redmond, Washington-based company is earning its dues.

In further developments, Microsoft Corporation (NASDAQ:MSFT) has filed a lawsuit, demanding that the South Korean company pays a whopping $6.9 million in interest from 2013. The interest comes from what MS says is late payment of royalties owed to the company.

“We are confident that our case is strong and that we will be successful,” Deputy General Counsel David Howard said in a statement on Friday. “At the same time, Microsoft values and respects our long partnership with Samsung, is committed to it, and expects it to continue.”

Microsoft Corporation (NASDAQ:MSFT) also argued that its purchase of Nokia didn’t by any chance go against any term of their agreement.

The two tech companies haven’t been able to come to a mutual agreement on the terms of the contract with Samsung arguing that the acquisition of Nokia by Ms is a breach of their initial agreement. And since then, Samsung has been late paying for the royalties for its Android devices, leading to Ms’ demands.

“After spending months trying to resolve our disagreement, Samsung has made clear in a series of letters and discussions that we have a fundamental disagreement as to the meaning of our contract,” said Howard.

The companies aren’t reading from the same page at the moment, and it’s believed that the court will bring the matter to conclusion.

This article has been written by Victor Ochieng.

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