More reports on: Samsung, Telecom

Microsoft sues Samsung in US court over contract breach

02 August 2014

Microsoft yesterday sued Samsung in a US federal court, claiming breach of contract by the South Korean giant over licensing of technology used in the highly competitive smartphone market, PTI reported.

"After becoming the leading player in the worldwide smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft," according to a blog post by the US technology firm's deputy counsel.

According to the complaint filed in a federal court in New York, Samsung was balking at making payments for patented Microsoft technology used in smartphones and tablets.

AFP reported Samsung would review the complaint in detail and determine appropriate measures in response.

According to Microsoft, the South Korean consumer electronics giant was not adhering to a contract from 2011, adding the court action was filed after months of "painstaking negotiation."

According to the post by deputy counsel David Howard, the legal pact involved Samsung not paying to use Microsoft's intellectual property.

Sales of Samsung smartphones had quadrupled after the contract was signed with the company growing from shipping 82 million Android-powered handsets in 2011 to shipping 314 million three years later, according to Microsoft.

Samsung had emerged a smartphone goliath, and one of the biggest handsets makers, powered by Google's free Android software.

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