Microsoft sues Samsung in royalty dispute

LOS ANGELES — Microsoft said Friday it is suing Samsung for threatening to stop paying Microsoft royalties for patents behind the Android operating system.

The two companies came to a deal in September 2011 to cross-license each other’s patent portfolios. Samsung wound up paying Microsoft royalties on a series of patents.

Analyst Rick Sherlund of Nomura Securities has estimated royalties on its Android patents bring Microsoft nearly $2 billion a year.

Microsoft, based in Redmond, Washington, says more than 25 companies are licensing the patents, including Samsung, Acer and ZTE, covering roughly 80 percent of the Android-based smartphones sold in the U.S.

In a blog post Friday, Microsoft Corp.’s deputy general counsel said Samsung Electronics Co. Ltd. decided to breach its contract after Microsoft announced in September it was acquiring Nokia’s devices business.

After initially refusing to pay royalties in the second year of the deal, Samsung made a late payment in November but did not add on interest, according to a redacted copy of the complaint filed in federal court in New York and provided by Microsoft.

The complaint also alleged that Samsung has asked South Korean competition authorities to change the contract to reduce or eliminate its payments to Microsoft.

Samsung said in a statement, “We will review the complaint in detail and determine appropriate measures in response.”

More in Herald Business Journal

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Small retailers aim for emotional ties big chains may lack

“Put yourself into the community more and the money will come back to you.”

A look at what some stores have planned for Black Friday

With unemployment low, stores are hoping customers are in a mood to shop.

Boeing bolsters team for potential 797 with leading engineer

Terry Beezhold has been chief project engineer for the 777X program.

Uber paid off their hackers — they’re far from the only ones

“More and more companies have their own Bitcoin wallets for such cases.”

Airline defendants to pay $95 million in 9/11 settlement

The litigation claimed that security lapses led the planes to be hijacked in the Sept. 11 attacks.

Trump SoHo to shed ‘Trump’ amid reports of sagging business

The president’s company said it would have no comment beyond its news release announcing the move.

Uber reveals cover-up of hack affecting 57M riders, drivers

Uber acknowledges paying the hackers $100,000 to destroy the stolen information a year ago.

Mountlake Terrace-based 1st Security Bank wasn’t traded publicly during the recession, but it has seen a steady growth since the recession. (Jim Davis / HBJ)
How stocks in local banks fared since the recession

Every bank was hit hard during the recession, but most have bounced back in a big way.

Most Read