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Microsoft files legal action against Samsung

Microsoft files legal action against Samsung

Microsoft yesterday filed a legal action against Samsung in U.S. District Court, Southern District of New York to enforce its contract with Samsung.

Samsung, in 2011, entered into a legally binding contract with Microsoft to cross-license IP – an agreement which has been extremely beneficial for both parties. Samsung had been complying with the contract and paying to use Microsoft’s IP.

According to Microsoft, Samsung smartphone sales have quadrupled since they both entered into the contract, making Samsung the leading worldwide player in the smartphone market.

David Howard, Corporate Vice President and Deputy General Counsel, Microsoft explains the bone of contention between the two large corporations thus: “After becoming the leading player in the worldwide smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft. In September 2013, after Microsoft announced it was acquiring the Nokia Devices and Services business, Samsung began using the acquisition as an excuse to breach its contract. Curiously, Samsung did not ask the court to decide whether the Nokia acquisition invalidated its contract with Microsoft, likely because it knew its position was meritless.”

We are simply asking the Court to settle our disagreement, and we are confident the contract will be enforced, Microsoft says.

Kayode Oladeinde Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929

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