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Microsoft sues Samsung over unpaid Android patent royalties

post #1 of 72
Thread Starter 
Microsoft on Friday filed a lawsuit with a New York district court claiming Samsung is in breach of an Android patent cross-licensing contract after failing to turn over an undisclosed amount in royalty payments.

Samsung


While the court filing has yet to be made public, Microsoft's deputy general counsel David Howard offered a brief overview of the complaint in a post to the company's official blog.

"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," Howard writes.

Samsung apparently decided to break a 2011 patent licensing deal in which the Korean company agreed to pay Microsoft royalties on sales of smartphones and tablets running the Android operating system. Microsoft has secured a number of similar IP licensing deals with various device manufacturers.

According to Howard, Samsung is attempting to sidestep the contract by saying Microsoft's purchase of Nokia invalidated the agreement.

"In September 2013, after Microsoft announced it was acquiring the Nokia Devices and Services business, Samsung began using the acquisition as an excuse to breach its contract," Howard writes. "Curiously, Samsung did not ask the court to decide whether the Nokia acquisition invalidated its contract with Microsoft, likely because it knew its position was meritless."

Howard notes Samsung's huge share of the Android device marketplace, and therefore the smartphone market as a whole, saying the Korean tech giant stopped complying with contract terms "late last year." Interestingly, Samsung reported disappointing earnings on Thursday, citing heightened competition in the smartphone space.

As for the lawsuit's future, Samsung has yet to issue an official response, though Howard feels a copacetic conclusion can be reached in court.

"Microsoft values and respects our partnership with Samsung and expects it to continue," he writes. "We are simply asking the Court to settle our disagreement, and we are confident the contract will be enforced."
post #2 of 72
and still their profits were down.... Amazing.

Their Legal department must love attending strategy meetings, Either they are gluttons for punishment or just enjoy the blood lust of courtroom battle.
post #3 of 72
Oh, this is going to be good.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #4 of 72

Samsung is a shameful company. In what world would an acquisition mean that you no longer need to uphold your contracts?

post #5 of 72

When will the US government and judicial system actually force Samsung to pay up or risk an ban on all Samsung devices? Samsung has shown it has no intention of paying any of its fines or contractual responsibilities (royalties). Isn't this enough for an import ban?

post #6 of 72
They stopped paying royalties as per licensing agreement without going to court first? Can we just do that whenever we feel like it?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #7 of 72

Ah, Samsung.  The American-attacking company fueled by Google.

 

Nice work Google.

FEAR GOOGLE
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FEAR GOOGLE
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post #8 of 72

I hate Samsung and hope that they get their ass whipped in this case. However, without seeing for full story from both sides, it's impossible to tell who's right and who's wrong. The contract may prohibit Microsoft from making Android phones, or using certain Samsung patents.

 

Anyway, it's nice to see that Samshit is being dragged to court once again.

post #9 of 72
A court decision determining that Samsung must pay royalties as defined by contract and court decision will have little impact on Samsung if they still refuse to pay. The only action that will ensure that Samsun complies is for US and EU to sanction Samsung by allowing the seizure and sale of Samsung property. An important ban would be the second choice. Unfortunately, it does nothing to compensate Microsoft or any other company harmed by Samsung's illegal actions.
post #10 of 72
Quote:
Originally Posted by macaholic_1948 View Post

A court decision determining that Samsung must pay royalties as defined by contract and court decision will have little impact on Samsung if they still refuse to pay. The only action that will ensure that Samsun complies is for US and EU to sanction Samsung by allowing the seizure and sale of Samsung property. An important ban would be the second choice. Unfortunately, it does nothing to compensate Microsoft or any other company harmed by Samsung's illegal actions.

I'm sure the contract has a penalty clause in case one side doesn't comply with the terms. Breaking commercial contracts is a big deal. It's even scarier when you do so against a giant who has a bottomless pit of money to throw at its lawyers. If Samsung is found guilty we can surely expect some big damage claim from Microsoft.

post #11 of 72

Oh boy!

 

Microsoft is NO Apple. Apple is soft ... Microsoft ....well.... :smokey:

.

.

.

.

On another note, needed a shiny new SSD for my office PC (running Win7 :embarrass)!

 

The sales guy tried his best to sell me one from Samsung. :\ And, looking at price and specs, I was soooooo very close .... :no:

 

Left the store with one from OCZ! Cost a little more ... but you know what? I didn't give my $$ to Sammy! That made me smile! :p 

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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post #12 of 72
Quote:
Originally Posted by zoffdino View Post

I'm sure the contract has a penalty clause in case one side doesn't comply with the terms. Breaking commercial contracts is a big deal. It's even scarier when you do so against a giant who has a bottomless pit of money to throw at its lawyers. If Samsung is found guilty we can surely expect some big damage claim from Microsoft.
It does not matter what damages the court offers up if Samsung refuses to pay up. The only remedy that Microsoft will have if Samsung does not comply is seizure of Samsung property. This could include product shipments at their point of entry. The US government could set sanctions but that does not pay Microsoft back.
post #13 of 72
Screw the courts. Hire a Kuklinsky.
post #14 of 72
I'm sure that after spending years losing to Apple with its patent suits, and still not having to pay Apple a dime, they've decided the US court system has no teeth to hurt them. Apple recently dropped its years long battle to ban import of some Samsung devices because the case took so long it no longer mattered. Samsung had made its billions stealing Apple's intellectual property, and even lost in court twice, and still owes Apple $1 billion in settlements. No trade organization is ever going to ban Samsung's current products to enforce a contract. So, why pay Microsoft anything? If Apple couldn't stop them, what are Microsoft's chances?

- Dave Marsh
iMac Intel 27" 3.4GHz, iPad Air 64GB, iPhone 5 32GB

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- Dave Marsh
iMac Intel 27" 3.4GHz, iPad Air 64GB, iPhone 5 32GB

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post #15 of 72
C
U
Next
Tuesday
Sammy.
post #16 of 72
Hopefully a bunch more people who like Microsoft also start boycotting Samsung.
post #17 of 72

Won’t everyone stop picking on SamSlug. It’s suffering into late stages decrepitude and mindfogitude. It’s a misery for sure so we should all have a heart. Next fridge you need, make sure its Sams.

And dying at the starting gate, whose first out of the gate in failed projects, MS or SS? Me thinks MS is tossing the goo that slapped it in the face. It’s a merry-go-aground and a farce-Wheel at the playground boys and girls. But hey, its summer. Party On.

When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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When I find time to rewrite the laws of Physics, there'll Finally be some changes made round here!

I am not crazy! Three out of five court appointed psychiatrists said so.

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post #18 of 72
Quote:
Originally Posted by Disturbia View Post
 

Oh boy!

 

Microsoft is NO Apple. Apple is soft ... Microsoft ....well.... :smokey:

.

.

.

.

On another note, needed a shiny new SSD for my office PC (running Win7 :embarrass)!

 

The sales guy tried his best to sell me one from Samsung. :\ And, looking at price and specs, I was soooooo very close .... :no:

 

Left the store with one from OCZ! Cost a little more ... but you know what? I didn't give my $$ to Sammy! That made me smile! :p 

 

I've got some bad news for you, the Samsung SSDs are more reliable than the OCZ SSDs.

 

I'm not fond of Samsung either, but make a smart choice, not one based on defiance.

post #19 of 72

Where's GatorGuy? How many times has he run his trap claiming there's no "proof" MS actually collects royalties from Samsung (or anyone else) over MS IP in Android. Or that Android even infringes MS IP?

 

No, seriously, he has actually stated that numerous times. Would love to hear his spin on this case.

post #20 of 72

Hey AI...

 

Are you planning to finish that last sentence?

post #21 of 72
Quote:
Originally Posted by EricTheHalfBee View Post

Where's GatorGuy? How many times has he run his trap claiming there's no "proof" MS actually collects royalties from Samsung (or anyone else) over MS IP in Android. Or that Android even infringes MS IP?

No, seriously, he has actually stated that numerous times. Would love to hear his spin on this case.

It is my observation that forum contrarians simply oppose whatever you say that happens to push their buttons on a particular thread, and over time, their body of posts winds up contradicting itself, sort of like the "continuity errors" that creep into long-running canons like Star Trek.

GatorGuy claims he's not a Samsung fan, so I conclude that the times he appears to "defend" Samsung is really just a reaction to people beating on Samsung, and if that is indeed his motivation, then he just might be a contrarian. 1smile.gif

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #22 of 72
Somebody call BlackBerry legal.
Maybe they can get in on the Samsung legal-smackdown action.

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Sent from my iPhone Simulator

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post #23 of 72
Originally Posted by EricTheHalfBee View Post
 

Where's GatorGuy? How many times has he run his trap claiming there's no "proof" MS actually collects royalties from Samsung (or anyone else) over MS IP in Android. Or that Android even infringes MS IP?

 

No, seriously, he has actually stated that numerous times. Would love to hear his spin on this case.

 

There's no proof that there are no secret government black helicopters either.

Maybe they got him.

Finally.

Sent from my iPhone Simulator

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Sent from my iPhone Simulator

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post #24 of 72
Quote:
Originally Posted by jkichline View Post
 

Samsung is a shameful company. In what world would an acquisition mean that you no longer need to uphold your contracts?

I have no idea. Either Samsung have gone insane, or Microsoft writes the weirdest contracts I've ever heard of.

post #25 of 72
Quote:
Originally Posted by Ronbo View Post

Hey AI...

Are you planning to finish that last sentence?

We can complete it.
"Interestingly, Samsung reported.." That they steal from everyone.
post #26 of 72
Doesn't Microsoft make more money in royalties that Samsung does in profits off of each cell phone? Seems I remember $10 a phone. That has got to really burn Sammy's nether regions... I suspect Sammy owes MS all of their declared profit and then some... Wait until the Samsung share holders get a whiff of this news!!
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #27 of 72
And here the fandroids always kept claiming it's just Apple that picks on poor Scamsung, and that Scamsung hasn't actually done anything. Now, here we have a scenario where they've signed a LEGAL CONTRACT with one of the largest, most power software companies in the world, and they are blatantly giving them the finger because they feel like it, coming up with the most ridiculous excuse ever.

This should be a huge red flag for Apple. Even if they ever negotiate a deal (which won't happen even after hell freezes over), that Scamsung will just renege on the contract, and stop adhering to the terms of that agreement, and go back to doing whatever the **** it wants, as it always does.

Hope SK's President Park goes after the chaebol of SK, starting with Samsung's controlling family, and put the country back in control of their people, and not these lying, thieving thugs ruining SK, and now the rest of the world.
post #28 of 72

I am not understanding this... why is Samsung paying royalties to MS for using Android? Isn't Android made by Google? It makes no sense to me. 

post #29 of 72
Quote:
Originally Posted by netrox View Post

I am not understanding this... why is Samsung paying royalties to MS for using Android? Isn't Android made by Google? It makes no sense to me. 
Cause Android uses stolen code and IP from Microsoft, that Microsoft proved was theirs, and now license that tech to anyone who uses Android.

Your precious Android is made by Google, with large chunks of stolen IP.

Might wanna check this out:

http://arstechnica.com/tech-policy/2014/06/chinese-govt-reveals-microsofts-secret-list-of-android-killer-patents/
Edited by MagMan1979 - 8/1/14 at 6:09pm
post #30 of 72
Curiously, just after reading up a little more on this whole situation, it would appear the contract in question had a non-competition clause in it, and that's the excuse Samsung is using to not pay royalties, because they believe Microsoft is in violation here, and not them.

As Nokia is a smartphone maker that recently did make some Android devices, that would make them a competitor to Samsung, and as MS recently bought them, there is a potential for contract invalidation here.

What's scarier, is will Samsung then claim that because they previously had a patent licensing agreement, will they begin ripping off that IP from MS after a potential contract invalidation, once again bringing to bear, this time on Microsoft, their strategy of weaponizing patents and legal contracts?

This can also be contradicted though, as Windows Phone has technically been a competitor OS to Android since inception, and that being a supplier of a competitor OS, Samsung knew what they were signing on for.

This might actually turn into a bloody fight if MS doesn't get all its ducks into a row...
post #31 of 72
Quote:
Originally Posted by MagMan1979 View Post


Cause Android uses stolen code and IP from Microsoft, that Microsoft proved was theirs, and now license that tech to anyone who uses Android.

Your precious Android is made by Google, with large chunks of stolen IP.

Might wanna check this out:

http://arstechnica.com/tech-policy/2014/06/chinese-govt-reveals-microsofts-secret-list-of-android-killer-patents/

 

Um, what makes you think I have Android? I never owned an Android device... I've always been an iPhone owner.

 

Why is MS demanding non-Google companies to pay royalties when Google is the guilty one owning stolen code? That's what I don't get it.  

post #32 of 72
Quote:
Originally Posted by MagMan1979 View Post

Curiously, just after reading up a little more on this whole situation, it would appear the contract in question had a non-competition clause in it, and that's the excuse Samsung is using to not pay royalties, because they believe Microsoft is in violation here, and not them.

As Nokia is a smartphone maker that recently did make some Android devices, that would make them a competitor to Samsung, and as MS recently bought them, there is a potential for contract invalidation here.

What's scarier, is will Samsung then claim that because they previously had a patent licensing agreement, will they begin ripping off that IP from MS after a potential contract invalidation, once again bringing to bear, this time on Microsoft, their strategy of weaponizing patents and legal contracts?

This can also be contradicted though, as Windows Phone has technically been a competitor OS to Android since inception, and that being a supplier of a competitor OS, Samsung knew what they were signing on for.

This might actually turn into a bloody fight if MS doesn't get all its ducks into a row...

Sammy isn't allowed to just decide when to stop paying. That's what the courts are for.
Quote:
Originally Posted by netrox View Post

Um, what makes you think I have Android? I never owned an Android device... I've always been an iPhone owner.

Why is MS demanding non-Google companies to pay royalties when Google is the guilty one owning stolen code? That's what I don't get it.  

Google makes no money on Android.
post #33 of 72
Apple fans can finally take a break, sit back, grab the popcorn and enjoy!
post #34 of 72

Oh dear!

post #35 of 72
Quote:
Originally Posted by jungmark View Post

Sammy isn't allowed to just decide when to stop paying. That's what the courts are for.
Google makes no money on Android.
Having dug around the complaints by MS, there might be substance to this action. You have to keep in mind, this is Scamsung we are talking about here. If they smell even the slightest possibility of weaponizing this somehow to enable them to get out of paying the royalties, and perhaps even causing collateral damage to MS on the way out by invalidating some of their patent portfolio, those scum bags will take it.

Personally, I'm intending on watching this very closely. And while I don't normally root for anything Microsoft, GO GET EM!
post #36 of 72
Google is generally complicit in IP theft which is obvious from the first major android release that pissed of steve jobs so much.

The idea that they are allowed to do this scott-free because they don't make money off of it is ridiculous.
post #37 of 72
Quote:
Originally Posted by blazar View Post

Google is generally complicit in IP theft which is obvious from the first major android release that pissed of steve jobs so much.

The idea that they are allowed to do this scott-free because they don't make money off of it is ridiculous.
Agreed, they shouldn't be allowed to get away with this. Besides, the argument that Google doesn't make money off Android isn't exactly factual... They do make money off Android, via sales of Google Play apps and content, and more importantly, by the ad revenue it generates for them.
post #38 of 72
I stopped buying samsung stuff when they started copying apple blatantly.
post #39 of 72

Samsungs defense will probably include:

 

We should only pay royalties on units sold, not units shipped

post #40 of 72
Out of morbid curiosity I went over to androidcentral.com to see what they were saying. The end of their article is hilarious:

"You have to think that if Samsung had any reason at all to think it was no longer required to pay licensing fees for each and every Android phone it sells, it would stop doing so — its responsibility to shareholders is to make as much money as possible, after all."

The comments are hilarious also. Some real Einsteins let me tell you.
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