Samsung paid Microsoft $1 billion in royalties last year

According to a court document filed Friday, Samsung has been paying Microsoft $1 billion a year in royalties to use its technology. The two companies signed an agreement in late 2011 in which Samsung agreed to pay royalties to Microsoft for seven years for the use of its patented technologies.


The amount is based on the number of Android devices Samsung sold and the prices it charged for them. Samsung has argued that Microsoft invalidated the agreement because it bought Nokia’s handset business, so it’s refusing to make further payments for this year and the coming years. That would mean billions in lost revenue for Microsoft.

Samsung is one of 25 companies that pay Microsoft to use its technology in Android products. Others include HTC, Acer and Barnes & Noble.

Microsoft says in its complaint: “By virtue of the Android licensing program, approximately 80 percent of the Android-based smartphones sold in the U.S. are licensed to use Microsoft’s patents."