Microsoft tells court Samsung owes $6.9 million in unpaid interest over licensing

Court documents reveal that Microsoft is asking for $6.9 million in unpaid interest in its lawsuit against Samsung last year over licensing. Microsoft originally filed the suit against Samsung stating that the latter owes it a licensing royalty on each Android Galaxy phone or tablet and that the former's purchase of Nokia's devices and service division didn't violate the company's contract with Samsung.

Here is the suit that Microsoft filed:

Microsoft v Samsung Unsealed Suit (opens in new tab) by inafried (opens in new tab)

In 2013, the unsealed suit revealed that Samsung paid Microsoft $1 billion in royalties. The suit claims that Samsung didn't make its second year royalty payments on time, with Samsung claiming that it shouldn't have to pay because Microsoft acquired Nokia, a competing smartphone manufacturer.

Despite the suit, the two tech giants have been warming up to each other again with Samsung recently agreeing to use Microsoft's Office suite in favor of its own homegrown solution.

Is $6.9 million in unpaid interest alone too high?

Source: Re/Code

Chuong Nguyen

Chuong's passion for gadgets began with the humble PDA. Since then, he has covered a range of consumer and enterprise devices, raning from smartphones to tablets, laptops to desktops and everything in between for publications like Pocketnow, Digital Trends, Wareable, Paste Magazine, and TechRadar in the past before joining the awesome team at Windows Central. Based in the San Francisco Bay Area, when not working, he likes exploring the diverse and eclectic food scene, taking short jaunts to wine country, soaking in the sun along California's coast, consuming news, and finding new hiking trails. 

  • They should pay them...
  • So, no Windows Phone from Samsung then.
  • They should pay more.
  • Apparently you're getting paid microsofty App Central Phone Windows via Posted
  • Apparently you are paying the $6.9 million, bot sheep.
  • They should instead make better high end windows phones.... Like a galaxy windows phone
  • Yesss, the súper galaxy ace now with Windows Phone.
  • Why? So the won't support them like they didn't support my first focus or my kids focus flash, or the focus 2? I was once a big Samsung fan on windows phone, but they've show there tri colors when it comes to WP. The same is true for HTC, which I currently have 2- 8X's which I can't wait to get rid of. While the one m8 for windows is a slick device, I also see what HTC does as well..... Make s phone and practically forgets it. So honestly, Microsoft owns the patents and deserves to be paid if someone is using technology they invented. It's also funny how cellular carriers can make great commercials for the iPhone (have you seen the latest ones for the iPhone from T-mobile and Sprint)? Yet they either don't make one for WP or they're so basic it wouldn't get a dogs attention
  • How about they sue Verizon for not releasing official 8.1.
  • Verizon didn't??
  • Lumia icon still doesn't have official 8.1 \ cyan.
  • I see well do you know anything about the Lumia 822?? Whether it's getting it too
  • Never liked Samsung, I think they deserve it. Not that they don't make insane profits by selling cheap plastic at premium prices.
  • Samsung is such a weak company
  • So weak that they sell more phones than anyone else? Or so weak that they basically have market upper hand in most countries?
  • Weak as in they use to make great products, then they went the way of sony. It's so sad.
  • They only sell more phones because they release a new one every couple of weeks and claim it's the next big thing even though its not that much different to the one before.
  • Just like Apple I guess, but in a smaller timeframe...
  • Aleast you have choice you dimwit. App Central Phone Windows via Posted
  • Yet they can't sell their Tanzen OS they've had for years now. They like Nokia to Microsoft were early adaptors of Android so their reputation has matured and Android and Apple has been around so long, people are reluctant to change. The same concept holds true for windows XP and Windows 7; that's why the adoption rate for windows 8/8.1 is so slow to catch on. I've everyone installed the preview of windows 10, and while it's good for desktop users, I honestly prefer windows 8.1 and the full screen approach; you can make an app full screen, but the extra clicks now annoy me, and full screen is astetically pleasing to the eyes.
  • You just sound stupid..they make great phones yes plastic but at least it doesn't bend.problem with fanboys.You always sound stupid.that means all fanboys...iPhone,windows,android,..especially iphonies. App Central Phone Windows via Posted
  • Agree, Samsung products are mediocre on everything
  • Then, by that logic we have billion of "mediocre" people in the world, right? :)
  • Well, now that you mention it, yeah.  Probably at least a billion mediocre people in the world.
  • Good demographic skills and informations, I admire you! :)
  • I'm not mediocre. I'm reading this forum everyday and I own a L920. Phew! That was close. I almost become mediocre 4 yrs ago but am glad I got a L800 instead of an S2. It was a defining junction inn my life.
  • I own Samsung ATIV S i8750 and i am loving it every minute, it works perfect, it's accurate, fast, reliable and it gets job done whatever i throw at it without a single lag. Oh and the battery life is awesome. I guess by his findings i am a mediocre person, lol max-esc, everyone has different preferences, so leave people be happy with their own and stick your preferences to yourself. What's good for you doesn't necessarily means it will be good for others. Chill out dude :) khipara you made a good choice choosing L920 over Galaxy S2 :) thumbs up! :)
  • Eat shit.. Millions of flies cant be wrong..
  • Was this a reply for me or for max-esc? I'm a bit confused here :)
  • Yeah, we do! Have you ever talked to some of the people who use iPhones and Galaxies in the work place? They don't even know anything about the phone except it's an iPhone or Galaxy and call me every hour to find out how to do something. All I hear is, I got a galaxy or iPhone because my daughter, son, or neighbor has one.
  • and how lame is that, right? lol :) I am in the same situation as you my friend. :)
  • Are you 5 years old?You sound like you just make stupid words up..(your opinions) App Central Phone Windows via Posted
  • Dude chill.. What's with the stupid and all that..
  • Agree
  • Always have been. Why stop when they still sell. Lol. Just coz something is shiny doesn't mean u shud buy it. This is just marketing at its best.
  • Hmm do you know how samsung compares to Nokia windows phones? I'm referring to return because of defect rate. I think you'd be surprised. Posted via Windows Phone Central App
  • And yet they crush windows phone.weird.all my window phones fail me eventually. App Central Phone Windows via Posted
  • My personal HTC 8X or my kids 2-920's haven't failed me, the manufacturer (HTC) is failing me..... Can't wait to get rid of this phone in favor of a Nokia. The support is night and day difference and my work Lumia 930 is great.
  • This/\
  • This comment made me laugh. Because if they're "cheap" , How are they the #1 Smartphone manufacture and are on teh Biggest mobile OS? Are you forgeting that Windows Phones are at 3%? 
  • Samsung have been caught manipulating benchmarks and paying students to leave bad publicity on forums about HTC. If their products are so good why would they need to do that?
  • Lol you guys have nothing so this is your arguments..lmao. App Central Phone Windows via Posted
  • Why don't you like them? Is it because they neglect your precious platform? Get real.
  • Waiting on a new Samsung wp Posted via Windows Phone Central App
  • Samsung ATiV
  • Ativ 3 or something. Posted via Windows Phone Central App
  • A beautiful HTC m8 WP for sale and you're waiting for a plastic Samsung? Matter of fact, there's a Nokia 930/icon!
  • I looked at the android version of the one at Tmobile the other day. Since the windows version is coming to Tmobile soon. It's just to small. I need a W8Phone with a 6 inch screen. I don't think I could ever downsize after using a note 3 Posted via Windows Phone Central App
  • 1520! Maybe the 1530 will come to TMobile? hmmm
  • Buy 1520/1320/i6+.
  • I'm fighting the urge to get a 1520.3 right now, but I don't want to miss something new that could be released near the holiday or shortly a afterwards...... It's torture I tell you torture!
  • Not going to buy it through but other people will. Posted via Windows Phone Central App
  • Microsoft should sue Verizon for withholding updates. You owe me!!!
  • Good one :) Posted via the Windows Phone Central App for Android
  • T-Mobile should be sued too then
  • There is the fact that T-Mo has to make and test their own ROMs to integrate Wi-Fi calling but by all means just keep spouting off.
  • Ok will do!
  • I am agree willing to be a witness too. F Verizon.
  • Hey, you know what, Samsung? You keep making Android devices that violate MS's patents, Google seems incapable of building a version of Android that *doesn't* violate said patents, so here's a suggestion: do more with Windows Phone. It's free and it doesn't violate any patents at all.
  • Samsung is trying to make Tizen a thing. Idk where that's going to go but yes they should make more windows phones Posted via Windows Phone Central App
  • It's like telling Toyota to stop making cars and make fridges instead.
  • How about: "It's like telling Samsung to stop making android phones and make fridges instead." Oh, wait, they do...
    Where are new Samsung Windows Phones? And especially with the Samsung Android ubiquity, why don't they release more than one WP per year?
  • It's like telling Kawasaki to stop making motorbikes and to make trains inst... Oh no wait, they do.
  • It's like telling Yamaha to stop making motorbikes and make musical instruments...oh yeah.... They do...
  • Why do you care so much about Samsung. Got myself a Samsung washing machine, thinking hey everyone buying Samsung nowadays. Why not! It sucks! Never buying Samsung again. LG my friend LG!
  • My Samsung dryer failed 3 times in 5 years, my Samsung washer twice in 5 years. My Samsung refrigerator has been serviced 3 times in 5 years. I bought all three appliances at the same time from Lowes. Parts are usually hard to come by. I did have a Samsung focus and had no issues though.
  • Microsoft should make refrigerators so Samsung can copy those too!
  • Maybe its the user and not the product that failed? App Central Phone Windows via Posted
  • Maybe the product failed for the user.
  • My Focus had to be replaced twice and the third one went"south" the same week I got my Lumia 920
  • Holy Shit!  I thought I just got a bad one!  Mine lasted 5 years and the damn thing caught on fire!  Took over a month to get them to fix it!  I bought the warrenty on thank god!
  • they owe money for patents but if they make just wp phones they will still owe money because nokia had sh*tload of patents in everything for mobile phones.its not just OS.its everything
  • You really are an idiot, aren't you?
  • For crying out loud, get real!
  • That's mere pennies to a tech giant like that... Cut the check already
  • I guess we'll never get an ATIV 2 or Galaxy S5 w/ Windows huh?
  • Ativ SE has been a thing since April
  • Why would you even want such things? The Ativ was a weak phone with nothing special about it and the S5 is an expensive, slow piece of junk.
  • At the time the original Ativ S it was the only high end phone that supported SD cards and the RAM they used was by far the fastest when compared to the other WP phones. And besides that it was very cheap a few months after it was released. I got mine for 200 Euros. It's really no bad phone.
  • that's not even a lot but they feel they don't have to follow the rules smh raise the royalties they have to pay you each day they don't LOL :-D
  • Samsung should just announce The Samsung ATIV Note (5.5inch Windows Phone 1080p) and see how quickly Microsoft backs down...good times
  • Omg yes. Posted via Windows Phone Central App
  • Exactly. And supports and updates the platform :)
  • Omg windows phone fans dream right there. Posted via Windows Phone Central App
  • I'd buy one.
  • ms bought nokia because of patents and samsung more note5 make=more money owes to ms.
    easy money for ms
  • Get rid of the ativ name and call it galaxy with Windows
  • That should be ~ the weekly Starbucks budget for the Samsung corporate building.
  • You sir made my day Posted via the Windows Phone Central App for Android
  • Really???
  • Microsoft misspelled in the headline.
  • Well... so much for 8.1 on the ATIV :P
  • If I were Microsoft I'd go like "Know what, Sammy? Keep the money and use it to manufacture GREAT Windows Phones instead of those cheapass plastic resurrected old Galaxy xrap you've been producing for us until now."
  • Whats Microsft?
  • What better way to force Samsung to make more windows devices!
  • It's not too much at all. No matter how much better their relationship is getting, if one of them owes the other money then they need to pay it.
    What I wouldn't do to have $6.9m right now...
  • The 6.9Million is just the interest on over $1 billion owed. I'm not sure why Samsung thinks they can just stop making royalty payments because Microsoft bought Nokia. Samsung's move doesn't pass business ethics 101.
  • Now I completely understand why my ATIV SE hasn't updated
  • Galaxy hardware resistance sucks. Go Microsoft. MS get paid about 4 billions a year on patent fees by Android. Now android is more expensive than Windows being it lately free.
  • Make the note and galaxy sxxx for WP for the next 5 versions. Lawsuit settled
  • Samsung should pay up... A deal is a deal
  • What's the principle that interest is owed on?
  • Not paying the royalties you agreed to pay and, since you didn't pay, now owe to the entity that demands the interest payments from you?!
  • I believe the principal was paid already, just late, proving that Samsung are accepting the patents are valid. This is just a birch about Microsoft buying Nokia, and Samsung wanting to vent publicly.
    6.9m is peanuts to both companies, but Microsoft must uphold the principle of right to be paid on time.
  • Should be 6.9 billion if u ask me.
  • Won or Dollars?
  • Dollars
  • Why would Microsoft buying Nokia affect this contract at all though I don't get it.
  • Because the royalty agreement, which is if course not public, might have a clause to prevent Microsoft from competing in the business they demand royalties for, in this case enter the market as a phone manufacturer.
    But this is just an educated guess, because, like stated above, the agreement isn't public.
  • Maybe they got jealous of it. Haha! "Microsoft suppose to buy me not Nokia! Hmmmph!"
  • Ok Samsung, just pay
  • $6.9 million for Samsung is nothing more than pocket change. They are gonna spend more on lawyers if they go to court.
  • Notice it doesn't say Samsung is disputing the Android related patents are invalid, they are saying that Microsoft buying Nokia violated the contract.  I have always wondered what parts of Danger were copied by Andy Rubin when he started Android (before it was bought by Google).  I also want to know what the hell Google was thinking when they bought Android.  Seriously, the Android Phone is pretty much paying for the development of Windows Phone and Google cannot do anything about it (or they would have by now).  I think Microsoft might be making more money off Android than Google does (even when you consider Google services being tied in to Android devices).  Most people don't realize we are watching a slow motion train wreck with Android because of this. 
  • Yep, that is the reason Microsoft absorbed Nokia.
  • Very well said. 
  • Owh fcuk..there will be no 8.1 update for my ATIV S for sure..
  • Maybe if they stop producing Android devices and stick to Windows then they do not need to pay $7 billion... And windows updates will come to Samsung phones.
  • 6.8 million on a billion dollar debt is  0.68%. samsung is getting off cheap.
  • It isn't too high. If the product you sell for money is using someone else's ideas, they deserve a portion of each sale.
  • If you talked to any Japanese loyalist though, they'll tell you that all of South Korea owes Japan for stealing Sony, Toshiba Sharp, etc. For any Korean brand is just a knock off of a Japanese brand and stealing their ideas and design. I don't agree with this is 100% true personally, but there are cases to he made about a lot of Korean pirating of others ideas, but still not as bad as the Chinese KIRFs
  • The question is the provableness of the claims.
    In the case of Microsofts patent claims they seem pretty undisputed (by anyone more serious than Android fanboys).
  • Please stop perpetuating that silly Engadgetism. Ugh.
  • Oh yeah, Samsung is warming up with Microsoft...
    Ever increasing number of Android devices, no further Windows Phones, halt of Notebook sales in Europe... But they throw that useless piece of garbage of a few Office licenses at Microsoft. What a sweeping victory for Nadella...
  • Well Samsung stopped all notebook sales in Europe including Chromebooks.  So that wasn't a jab at MS.  It's just because Samsung is not a well liked laptop brand in Europe for whatever reason.  The Samsung Android/Windows Phone situation is accurate though.
  • Indeed. I knew they halted Chromebook sales, I just wanted to complete the picture, where it affects Microsoft. But the Windows phone situation is bad enough.
  • Sounds like a huge number for a mortal. How big is that for a multi-million dollar international company that do everything from drugs to shipbuilding ?
  • Samsung is one of 25 companies that pay Microsoft to use its technology in Android products. Others include HTC, Acer and Barnes & Noble. Analysts have estimated that Microsoft makes more money indirectly from the sale of Android devices than it does from selling Windows Phones... MS still the boss!
  • they make more than google on android. that's y google acquired motorola sold it with a 10 billion loss and promoted moto by buying patents.
  • I've a coworker that had 95$ in u paid tickets (traffic) dating back to early 2000s. When he paid them in 2008 to get a new license in a different state he had to settle with Texas first. 3k$. Is that too much? Probably, but he had to pay it anyway.
  • That is way to much for interest alone, but in the case of unpaid tickets most of that is probably penalties which is a different beast.
  •    "Where's my money, Brian?"
  • $7 million on interest alone? Holy crap! How much were the licensing fees?
  • Microsft should sue Google next for ripping Modern UI with its Material UI.
  • Please Explain to me how google copied the Start Screen, Charms Bar and Metro Apps :-) . Right. BECAUSE THEY NEVER COPIED.
  • right.
  • Off topic: I always found the word "suit" peculiar for a court case as the same word also stands for a specific clothing item. I wonder if it is because lawyers tend to wear suits :-)
  • Hmm. I'm confuse with the reason. Why must the contract broken if Microsoft buy device manufacturer? Is there any clauses that said that way? If yes, does device means smartphones or tablet included? Because Microsoft already made Surface before they bought Nokia's device division. Btw, that device manufacturer was became another company, not Microsoft itself. So how did it related to Microsoft contracts? Can someone who has business law degree enlighten me?
  • For Samsung 7 millions are nothing. They should pay the interests.
  • Samsung is trying to fight this because they know that they have a lot of patient to deal it.
  • Yeah make them pay Maybe they wake up
  • I think sammy want MS to sell hardware sectors.
  • Patents, patents, patents...!
  • new Samsung ativ ultra 46 with the last processor, with 0.01 mHz, now with radio app
  • My primary phone is a Lumia 635. Love Windows Phone, But all the people commenting are saying "there cheap for using plastic."? are you kidding me? Almost all of WP are plastic. And you can't say you hate a companys phone you've never tried (unless it's iPhone.). It doesn't make since. You Microsoft fan boys are making me sick . We get it, You love MS. Stop dissing crap.
  • I have a samsung ativ s and its a very good phone no mediocre specs or something just a very good phone just shut up everyone you dont have experienced the phone good enough
  • Ohh! come on Microsoft let them don't pay the royalties and wait till they are so much in debt that they can't repay you, and then do whatever you can to buy it... Monopoly FTW :p
  • Ive only ever used Samsung phones, not that I bought them because of the manufacturer, but because the phone was what I needed at the price I could afford. My current phone is a Samsung ATIV S running WP 8.1.1 and apart from a few bugs due to outdated firmware, I love it, best phone I've ever used. Never had any regret using Samsung and they are a very popular brand here in New Zealand, not just with phones and tablets, but with televisions and other products too. I hope Samsung and Microsoft can resolve their legal differences soon as in the end its us customers that loose out when our hardware and software providers fall out :-(
  • I smell a lot of Nokia fanboyism here. Did they forget Microsoft paid Nokia to make WP? As for quality, it's so great that Mexican consumer protection is suing them for defective phones. There phones are the ones made before they came on the WP bandwagon BTW.
  • That better pay them
  • So Samsung got all hissy bcos Microsoft bought Nokia. What's that gotta do with what they owe? Pay yo bills Samsung! or Microsoft will send the boys round ;)
  • Dem billions doe, damn.
  • These companies spend that much money each year on paperclips. For them its chump change.
  • pay it!
  • Pay your bills Samsung.
  • A contract is a contract you don't get to cancel it just because you don't like something the other side did. You have to wonder if this lawsuit is the reason why the current crop of Samsung WP's haven't been updated as well as why there doesn't seem to be anything new from Samsung.