Samsung Doesn’t Want to Pay Microsoft Anymore




/ 9 years ago

Samsung-money-bags

Microsoft hasn’t had as much luck and success in the mobile sector as they had hoped for. Lucky for MS they rake in more than 5 times the money they make on their own phones in royalties from Android handsets. Yes, you read right there. Microsoft makes 5 times as much money from Android as they do from their own Windows Phone line. To put a number on it, Microsoft makes $1.6 billion on Android handsets every year.

After a lot of disputes between Samsung and Microsoft back in 2011, the two giants reach an agreement where Samsung would pay the royalties for the patents Microsoft held and at the same time share classified device information with Microsoft for the purpose of marketing and development. It wasn’t an issue at that time, as Microsoft wasn’t a hardware manufacturer themselves. In return, the fees would be lowered if Samsung could keep up specific sales targets for Windows phones.

This has however changed since Microsoft acquired Nokia and now Samsung doesn’t want to pay those fees anymore. Microsoft’s purchase of Nokia makes them a direct competitor and it would void the previous agreement according to Samsung. So they refuse to pay the huge bill and in return Microsoft wants another 7 million dollars in damages for the late payment.

One can surely see both sides of the story here. Samsung doesn’t want to be held to an agreement that’s no longer valid and would force them to share company secrets with a direct competitor. On the other hand, Microsoft wants the money that is rightfully theirs based on the patents they own.

It will be interesting to see how this plays out. Will the two giants reach another settlement outside of the courtroom, or will this be another lawsuit in the world of technology, like we’ve seen so many before.

Thanks to Reuters for providing us with this information

Image courtesy of AndroidAuthority


Topics: , , , , , ,

Support eTeknix.com

By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram
  • Be Social With eTeknix

    Facebook Twitter YouTube Instagram Reddit RSS Discord Patreon TikTok Twitch
  • Features


Send this to a friend
})