Microsoft $1B richer thanks to Samsung

Software titan Microsoft still hasn’t established itself well in the mobile devices segment but the company is getting lofty revenue elsewhere. Microsoft has started concentrating in the hardware category but still the company hasn’t made any breakthrough yet as it lags behind its competition.

The company is banking well on its bread and butter which is the software department and has also good source of income from Samsung. Last year the company had amassed a whopping $1 billion revenue from Samsung in patent royalties. However, the South Korean company is looking forward to end paying it dues.

Microsoft is expected to accumulate billions of dollars from its Android patent licenses and thanks to Samsung the company is on right on track in augmenting its revenue stream from royalties. Though the company has been performing well in the software category but it is the exact opposite in the hardware department.

The Samsung and Microsoft agreement dates back from 2011 when Samsung is still in the brink of starting to make its presence felt in the mobile industry. But the company somewhat rose like Phoenix and now boasts of one of the most popular brands in the smartphone industry and it is now the chief rival of technology behemoth Apple. The company sells the most number of mobile devices than any other companies. Nonetheless, Samsung had lost some legal battle against Apple because of borrowing technology and is now attempting to escape from its deal with Microsoft.

Microsoft is filing legal suit against Samsung, insisting that the agreement should push on and Samsung must shell out the $6.9 million it still owes from the previous year.

Microsoft Deputy General Counsel David Howard stated that, “We are confident that our case is strong and that we will be successful. At the same time, Microsoft values and respects our long partnership with Samsung, is committed to it, and expects it to continue.”

Samsung has made a counter by claiming that the Microsoft’s merger with Nokia cancels out the cross licensing agreement and the company is no longer obliged to pay.

The decision hangs now in the balance, but Microsoft has the slight edge as Samsung doesn’t boast a decent record in courts especially on this matter.


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