Samsung as we speak defended its try to again out of a disputed patent deal with Microsoft, citing antitrust concerns over the Redmond firm’s buy of Nokia’s smartphone enterprise.
At concern in the case are agreements that set out patent licensing charges for Samsung’s use of Android, in addition to phrases for the 2 firms to work collectively on making Home windows Telephone handsets.
“Earlier than Microsoft’s merger with Nokia DSB, these provisions between Microsoft, an enter provider, and Samsung, a downstream vendor, comported with United States antitrust legal guidelines,” Samsung stated in its submitting. “After the Nokia DSB Merger, the agreements, now between rivals, invite costs of collusion. No cheap enterprise would knowingly undertake the chance of contractually obligating itself to coordinate and collaborate with a competitor—notably, as right here, with respect to setting third-party incentives and controlling the ‘out of field’ expertise of a competitor’s merchandise.”
Underneath one provision, if Samsung hit sure gross sales targets with its Home windows Telephones, the corporate would have to pay much less in patent licensing charges. That settlement additionally mandated that the businesses share sure info that Samsung now refuses to give Microsoft. Samsung claims that doing so may run afoul of U.S. antitrust regulation.
Microsoft’s acquisition of Nokia closed earlier this year, with the approval of U.S. regulators, who didn’t have any antitrust concerns on the time, although it’s not clear in the event that they have been privy to or conscious of the small print of Microsoft’s settlement with Samsung.
Unsurprisingly, Microsoft doesn’t suppose that Samsung’s argument holds water. A spokesperson for the corporate stated in an electronic mail to GeekWire that “Microsoft is assured that our case is powerful and that we are going to achieve success.”
Microsoft filed the lawsuit earlier this year, claiming that Samsung had breached its contract and owed the corporate $6.9 million in again curiosity. Earlier filings revealed that Samsung paid Microsoft $1 billion in licensing charges final 12 months because of the settlement, so any modification to the deal between the 2 firms may have a major impression on their companies.
Microsoft says that Android violates its patents, and has struck licensing offers with a sequence of Android producers.
Samsung’s full submitting is embedded under.