Microsoft sues Samsung over the breach of a contract regarding the license for a technology being used for the Smartphones. After a long legal battle with Apple, another US-based company has now locked horns with South Korean company. It looks like there is no end to legal battles for Samsung.
Microsoft Sues Samsung
The deputy advocate of Microsoft, David Howard, has said that ever since Samsung became the top player in the world in the Smartphone market, Samsung has stopped meet the terms of the agreement with Microsoft. Keeping this in mind, Microsoft sues Samsung.
After becoming the leading player in the worldwide Smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft.
The reason why Microsoft sues Samsung is because they are recoiling from paying Microsoft for the patents which are owned by the US company. The complaint regarding the matter has been filed in a New York federal court.
In the response to the complaint, Samsung spoke to AFP, saying that they will be reviewing the complaint and determine the future course of action.
Breach of Contract
According to Microsoft, Samsung hasn’t been sticking on the agreement from 2011. The company further added that they finally decided to take the legal way only after ‘painstaking negotiation’.
David Howard further added in the post and meant why Microsoft sues Samsung is that the legal agreement between Microsoft and Samsung stated that Samsung should pay Microsoft for using their intellectual property.
Microsoft sues Samsung for the reason they think that their sales have gone up almost four times in the past three years. In the year 2011, Samsung sold around 82 million handsets using the Android OS. The next three years saw the sales grow up to 314 million units.
Microsoft observed that Samsung has stopped respecting the cross-licensing agreement when Microsoft bought the Nokia Smartphone arm in the last year. The US company feels that Samsung is making the excuse of Nokia’s business acquisition as the ‘excuse’ to turn away from the license contract.
Until 2007 Nokia dominated the mobile phone market with their handsets until the rise of Apple and Samsung. The iPhone in 2007 followed by Samsung Smartphones took a real toll on Nokia, with Samsung accounting for more trouble.
And trying to keep themselves in the competition, Microsoft finally accepted Android OS for their Nokia Smartphones. Microsoft certainly wants to remain in the race. Only time will tell if this is too less and too late.