Microsoft And Samsung Finally Settle Up On Android Royalties Spat

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

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‘Confidential’ solution apparently benefits both parties after long-running dispute

Microsoft and Samsung have finally agreed to settle a long-running dispute between the two concerning the Korean firm’s use of the Android operating system.

The Windows developer had been unhappy that Samsung stopped paying royalties relating to a contract between the two companies following Microsoft’s purchase of Nokia’s handset division last year.

The South Korean manufacturer was also accused of failing to pay up on interest payments relating to the deal, leading to Microsoft suing Samsung.

AndroidKiss and make up?

“Samsung and Microsoft are pleased to announce that they have ended their contract dispute in U.S. court as well as the ICC arbitration. Terms of the agreement are confidential,” Samsung and Microsoft said on their official blogs.

It’s not clear what type of deal the two companies have agreed upon, but Samsung had been paying out per-device royalties to Microsoft for every Android product it sells, making it a lucrative source of income for the Redmond company.

A recent court case revealed Microsoft has earned $1 billion from Samsung in the form of patent-licensing royalties during 2013.

Samsung originally signed two contracts — a cross-licensing agreement and a business collaboration agreement — with Microsoft in 2011, ahead of its dominance of Android shipments. However it claimed that Microsoft’s purchase of Nokia’s devices arm invalidated the deals, as handsets sold after this date were not covered by the original agreement.

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