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Samsung Paid Microsoft $1 Billion but still owes $6.9 Million in Interest from Last Year

Becoming the top Android smartphone producer and seller hasn’t exactly been cheap for Samsung. After the whole Samsung vs Apple trial now we have Samsung once again embroiled in a law suit, except this time it’s Redmond based giant, Microsoft.

Reportedly Microsoft holds a large number of Android patents and has licensing agreements with Android device manufacturers around the world. However, the recent court battle has brought to light the exact figure which Samsung ended up paying last year in royalties, and it amounts to a whopping $1 billion.

The agreement between Samsung and Microsoft was originally signed in 2011, and since then Samsung has come a long way to dominate the Android smartphone market. However, this also means Samsung has had to pay up more, and given the stringent conditions of their contract, there is a lot of accumulated interest over late payments.

Samsung has finally decided that it wants to back out of the deal, and is citing Microsoft’s acquisition of Nokia has a valid reason for it’s demand. On the other hand, Microsoft wants Samsung to pay an interest of $6.9 million due to late payments, and is adamant that the contract holds firmly, regardless of the Korean company’s arguments.

While the matter is expected to be decided by a court of law, Microsoft’s Deputy General Counsel, David Howard in an interview with Recode, said that the company is confident that its case is strong and that they will successfully be able to recover the pending payments.

Interestingly, most big players in the industry are inter-dependent on each other, but still end up dragging and being dragged to court. While Samsung owes royalties to Microsoft, it also manufactures a lot of smartphones running on Windows OS, which is developed by the Redmond based company.

The court will now decide whether Samsung will have to pay up, and we will keep you updated as the story develops.

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