Microsoft takes Samsung to court in IP dispute

Microsoft accuses smartphone giant of using Nokia takeover to breach IP deal

Microsoft has taken legal action against rival Samsung, accusing the firm of using its acquisition of Nokia as an excuse to renege on an existing intellectual property (IP) contract.

In 2011, the duo struck a deal to cross-license IP, something which Microsoft labelled as "extremely beneficial" for both parties.

The US giant claims that once it took over Nokia last autumn, Samsung began breaching its contract, using the merger as an excuse.

In a filing to a New York court, Microsoft said Samsung refused to cough up interest after making a late payment on patent licences.

In a blog post about the legal action, Microsoft insisted it spent months attempting to resolve the issue with Samsung but decided to take it to court after the latter made it clear the two had a "fundamental disagreement as to the meaning of our contract".

"After becoming the leading player in the worldwide smartphone market, Samsung decided late last year to stop complying with its agreement with Microsoft," said the software giant's deputy general counsel David Howard.

"After Microsoft announced it was acquiring the Nokia Devices and Services business, Samsung began using the acquisition as an excuse to breach its contract.

"Curiously, Samsung did not ask the court to decide whether the Nokia acquisition invalidated its contract with Microsoft, likely because it knew its position was meritless."

Howard hastened to add that Microsoft "values and respects" its partnership with Samsung.

"We are simply asking the court to settle our disagreement, and we are confident the contract will be enforced," he said.

Samsung was not immediately available to comment but in a statement widely circulated it said: "We will review the complaint in detail and determine appropriate measures in response."