Microsoft doesn't own Android, and it doesn't create Android devices, yet the company is making more money than Google from the operating system on a yearly basis. A recent report has shown that Samsung paid Microsoft a whopping $1 billion back in 2013 in Android related royalties.
Back in 2011, Samsung agreed to pay Microsoft an undisclosed sum of cash to power its devices with Android. Microsoft had claimed that the Google-made operating system infringed on several of its patents, and thus handset makers had to pay.
Google was not subjected to this because the company is not selling the operating system to its partners. In fact, Android is free to use, and partners are only required to pay if they are interested in fitting out their handsets with Google services. Furthermore, without the Google services onboard, handset makers cannot say that their handsets are powered by Android.
We managed to learn about the $1 billion Samsung paid Microsoft due to the District court patent case where both companies are involved. From what we understand, Microsoft is angry because Samsung has not been paying its royalties on time, and because of the late payments, the Korean giant now owes the software giant $6.9 million in interest fees.
"(U)nder the License Agreement, Samsung agreed to make patent royalty payment to Microsoft for a period of seven fiscal years, in exchange for the right to use patented Microsoft technology in Samsung smartphones and tablets that use the Android operating system," according to the unsealed filing.
We've come to understand that Samsung wants to break away from the deal and is attempting to use the fact that Microsoft bought Nokia's handset division as an escape route.
For the most part, Samsung is seeking for Microsoft to adjust the deal. The company wants the interest it owes to be reduced or swallowed whole by the software giant. We're not certain if Microsoft is interested in going this route, so chances are the court system will have to decide on the matter.
From our point of view, it would be best for both companies to come to a formidable agreement and settle out of court. Samsung doesn't want another long and stretched out lawsuit on its hands right now, and Microsoft doesn't want to push its partners aside as Windows 10 is slowly coming into its own.
