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Contract row: Microsoft sues Samsung in US

Last Updated 02 August 2014, 18:07 IST

Microsoft sued Samsung in US federal court, claiming the South Korean giant had breached a contract over licensing of technology used in the fiercely competitive smartphone market.


“After becoming the leading player in the worldwide smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft,”  the US technology firm's deputy counsel said in an online post.

The complaint filed in federal court in New York alleges Samsung is balking at making payments for patented Microsoft technology used in smartphones and tablets.

Legal pact

“We will review the complaint in detail and determine appropriate measures in response,”  Samsung told AFP.

Microsoft contends the South Korean consumer electronics colossus is not adhering to a contract from 2011, and said it filed the court action after months of "painstaking negotiation." The legal pact involved Samsung paying to use Microsoft intellectual property, according to the post by deputy counsel David Howard.

Samsung's smartphone sales have quadrupled since the contract was signed as the company grew from shipping 82 million Android-powered handsets in 2011 to shipping 314 million three years later, Microsoft maintained.

Samsung has become a smartphone goliath, and the biggest maker of handsets powered by Google's free Android software.

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(Published 02 August 2014, 18:07 IST)

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