According to a Samsung court case, Microsoft collected $1 billion in patent-licensing royalties last year. Samsung originally signed two contracts, a cross-licensing agreement and a business collaboration agreement, with Microsoft in 2011.
This was before Samsung started selling so many Android phones and late last year Samsung decided it was tired of paying on time, or paying interest when a late payment was finally made.
Microsoft took Samsung to court and the Korean company insists it wants to walk away from the original deal because of Microsoft’s purchase of Nokia’s phone business.
Samsung claims the acquisition invalidates the business collaboration agreement, but Microsoft doesn’t agree and wants the company to pay $6.9 million in unpaid interest from last year.
Samsung continues to build Windows-based smartphones, tablets, and PCs, so Microsoft is biting the hand which feeds it to some extent.
Microsoft is sure it will win and insists that Microsoft values and respects its long partnership with Samsung. After all, a billion here, a billion there and soon you are talking about big money.