Samsung Loses Bid Against Microsoft
Samsung Electronics will not be able to put claims by Microsoft over smartphone patent royalties on hold until a Hong Kong-based arbitration body releases its results. U.S. District Judge Jed Rakoff in New York said the Samsung-Microsoft lawsuit will proceed despite the ongoing arbitration.
Samsung had initiated an arbitration process in Hong Kong with the office of the International Court of Arbitration of the International Chamber of Commerce to reach settlements over royalty payments that have arose in a contract with Microsoft.
Microsoft sued Samsung in August alleging that the South Korean technology giant breached a contract by deliberately refusing to pay smartphone royalties.
Microsoft claimed Samsung still owed $6.9 million in interest on more than $1 billion in patent royalties it delayed paying.
Samsung Electronics countersued and insisted Microsoft's Nokia acquisition raised anti-trust issues as the acquisition resulted in Microsoft becoming Samsung's direct competitor.