Samsung accused Microsoft of breaking their BCA terms with the acquisition of Nokia

Promises are made to be broken and Samsung has a mouthful of things to say about this cliché regarding its legal battle against Microsoft.

Samsung has pointed the finger at Microsoft for not comprising to the terms of the two companies’ Business Collaboration Agreement (BCA) with the latter’s acquisition of Nokia. Samsung claimed that with the purchase, the software giant has turned into a direct competitor in the smartphone market.

Samsung has filed its allegation against Microsoft with the US District Court, Southern District of New York that was later disseminated in the internet.

The document filed by Samsung reads “Samsung and Microsoft agreed in the Patent Licensing Agreement (PLA) and BCA to cross-license their patents and collaborate in developing and marketing Windows-based smartphones. Underlying those interconnected and mutually dependent agreements were the assumption that the parties were not competitors… But within three years of signing the PLA and BCA, Microsoft merged with a major Samsung competitor – Nokia’s Devices and Services business (Nokia DSB) – and began manufacturing its own smartphones. In doing so, Microsoft violated the BCA’s anti-assignment provision and denied Samsung the fruits of the parties’ agreement.”

The filing was a retaliation to the earlier accusation made by Microsoft that Samsung is obliged to pay $6.9M after procrastinating their settled $1B payment.

Samsung had accused Microsoft before of not following the BCA’s terms with its $7.2B acquisition of Nokia last April.

With the help of Microsoft’s mobile operating system (Android)  Samsung has found success by leaps and bounds with its smartphones. To date, Samsung is currently the biggest smartphone producer in the world according to the recent statistics whipped up by IDC Samsung. The South Korean company is also the top rival of Apple Inc. in the high-end smartphone market.


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