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Microsoft files suit against Samsung

will Microsoft lose out on revenue?
will Microsoft lose out on revenue?

Last Friday Redmond-based Microsoft filed a lawsuit that will have a big impact on the future of android-based mobile devices. In the lawsuit the Redmond-based giant is claiming that South Korea-based Samsung has violated their 2011 agreement to pay Microsoft royalties on ever android-based device they sell. Samsung says that when Microsoft agreed to but Nokia's mobile department, in September of 2013, it was them that nullified they agreement.

“We don’t take lightly filing a legal action, especially against a company with which we’ve enjoyed a long and productive partnership. Unfortunately, even partners sometimes disagree. After spending months trying to resolve our disagreement, Samsung has made clear in a series of letters and discussions that we have a fundamental disagreement as to the meaning of our contract,” said David Howard, Corporate Vice President & Deputy General Counsel, Microsoft, in a blog post.

It would be a major shake up if Samsung wins the suit since it would me that all of the other manufacturers that the Redmond-based company, has signed to similar agreements, could follow Samsung's lead. On the surface it sound it doesn't that Microsoft would lose that money they have been making from android-based devices. The truth is it could it could affect Microsoft's new policy granting manufacturers a free license to use Windows for mobile devices. If Microsoft wins the suit it could mean some changes for Samsung since they would have to not only pay all the royalties they have been withholding since September of last year but a penalty as well.

A separate deal that might play in Samsung's favor is a patient deal the South Korean electronics giant made with Nokia in November of last year. The deals has Samsung paying royalties to use some of Nokia's patients.