Wednesday, October 8, 2014

Samsung Has Paid MSFT Billions


Samsung has been paying Microsoft $1 billion a year in royalties to use its technology in Samsung’s Android smartphones and tablets, according to a court document filed Friday.
The filing also shows that Microsoft offered to reduce Samsung’s payments if it developed Windows tablets and phones alongside its Android products.

The information came to light in a lawsuit that Microsoft filed against Samsung in August. The original complaint was partly blacked out to hide confidential business information, but the revised filing made Friday is unredacted.

The two companies signed an agreement in late 2011 in which Samsung agreed to pay royalties to Microsoft for seven years for the use of its patented technologies.

Microsoft has maintained for years that Android infringes its patents, and many other companies besides Samsung have signed such agreements.

The contracts are typically highly confidential, so it’s unusual to get a look at the numbers behind them.

According to the filing, for year two of the agreement, which spanned July 2012 to June 2013, Samsung had to pay Microsoft just over $1 billion in royalties. The amount is based on the number of Android devices Samsung sold and the prices it charged for them.

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