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Microsoft Corporation (NASDAQ:MSFT) and Samsung end up their dispute

The ongoing dispute between Samsung and Microsoft Corporation (NASDAQ:MSFT) over payment of royalties to the software giant has come to a settlement finally. On the other hand, the amount of the deal has not been disclosed.

Microsoft sued Samsung last year due to the violation of rules and regulations agreements. Also, the software company holds a view that Google’s Android operates a numbers of systems whichviolate its patents. It had also asked that Android device makers sign a rules and regulation treaty with it. The Smartphone makers who had already taken the initiative and signed an agreement with Microsoft include:

  1. HTC
  2. LG Electronics
  3. ZTE
  4. Hon Hai

There has been observed an issue in the cross licensing deal of Samsung, when Microsoft made an announcement in September 2013 for acquiring the Smartphone business of Nokia.

Samsung justified its act of not paying in the second fiscal year as it believes the acquisition had some violated provisions in the agreement. Also, the company (Samsung referred here) did not pay interest when it made a payment a month ahead. According to Microsoft, Samsung owed US$7 million as an interest for the late payment overUS$1 billion.

Microsoft also criticized Samsung on threatening to withhold payment for the subsequent year and after that. On the other hand, Samsung had always been on the giving end, by paying royalties to Microsoft for a longer period of seven years so that patented technologies could be utilized in Android based tablets and Smartphones.

The request of Samsung in response to this was filed in the Hong Kong Office of International Court of Arbitration of International Chamber of Commerce last year in October. On Monday, the companies released a press statement citing as following:

“We are pleased to announce that we have ended our contract dispute in the USA and in ICC arbitration. Terms of the agreement are confidential.”

(The statement was attributed to Jaewan Chi, executive vice president at Samsung, and David Howard, Microsoft’s deputy general counsel and corporate vice president.)



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