Microsoft filed legal action against Samsung earlier this year for failure to pay royalty on intellectual property licensed from Microsoft for its Android devices, and now Samsung is claiming that the deal between both companies, which was originally agreed upon in 2011, is void following Microsoft's acquisition of Nokia.
Samsung made similar statements when Microsoft filed a lawsuit earlier this year, but is now changing its stance to focus more on antitrust issues stemming from the fact that Microsoft is now a direct hardware competitor. Samsung's deal with Microsoft in 2011 stipulated that the South Korean vendor would share sensitive data and develop Windows Phone devices with Microsoft, which would result in a reduction in the amount to be paid in royalties from Samsung's sale of Android devices.
Essentially, the more Windows phone handsets Samsung sold, the less it would have to pay Microsoft in royalties. That proved to not be the case, with Samsung shelling out nearly $1 billion in royalties last year over sales of 300 million handsets.
Samsung is now stating that since Microsoft owns Nokia's devices unit, sharing sensitive data with the company would result in a breach of US antitrust laws. Here's what the manufacturer said in the filing:
"The agreements, now between competitors, invite charges of collusion."
Microsoft, meanwhile, mentioned in a statement to Reuters that it was "confident that our case is strong", and that it would succeed. Microsoft is also seeking $6.9 million in damages as it says that Samsung was late in paying the $1 billion royalty in 2013. We should hear more from both organizations once a decision is reached.
What do you guys think? Is Samsung's reasoning sound?
HP updates Reverb G2 ahead of launch, preorders start shipping in November
HP is finally nearly ready to start shipping its new Reverb G2 Windows Mixed Reality headset. Those who have already preordered the $600 headset should see them arrive in November, while anyone preordering after September 24 will see headsets arrive in December.
The 300Hz display on the Razer Blade 15 is way ahead of its time
Our favorite gaming laptop now has a 300Hz display option and it's smoother than your eyes can really see.
Microsoft aims to compete with PS5 in Japan with Xbox Series S price drop
Microsoft is cutting the cost of the PS5 in Japan to better position the console as a cheaper alternative to the PS5. The price drop was announced during the company's first appearance at the Tokyo Game Show in six years.
These portable solid-state drives (SSD) use USB-C for a fast transfer
Need fast portable storage with the new USB-C standard connector on it? You need one of these.