Android OS Lawsuit

 

Microsoft's lawsuit against Samsung Electronics over Android royalty payments has caused alarm among Android phone manufacturers. In particular, Microsoft's move is expected to interfere with Google's strategy that strengthened its dominance in the smartphone market by improving the performance of its open-source operating system (OS).

On August 1 (local time), Microsoft brought a lawsuit against Samsung to the United States District Court for the Southern District of New York, saying, “Samsung Electronics violated the patent licensing deal signed three years ago, which was related to Android OS.”

The software giant raised two issues. First, Microsoft asked the court to decide whether or not its acquisition of Nokia’s phone business invalidates the 2011 agreement between the two companies for Samsung’s use of Microsoft’s intellectual property. Next, the software company contended that the Korean tech giant should pay interest for the delay in royalty payments last year. Even though Samsung made the royalty payments later, Microsoft is demanding interest on the late payments.

Experts are saying that Microsoft's patent lawsuit can be interpreted as its intention to check Samsung's influence and get an enormous amount of royalties.

Android device makers are nervous at the possible fallout of the lawsuit. Google has been increasing its dominance in the worldwide smartphone market using its open-source strategy that provides its Android OS free of charge, aside from some fees for certification. However, if Microsoft continues to collect patent fees in the form of royalty payments, Google's position in the market is likely to weaken considerably. Moreover, if the software firm strictly applies its patent rights while expanding its influence in the smartphone market, as in the case of Microsoft's buyout of Nokia, the company will be able to expand its reach to other Android handset manufacturers. If that happens, Microsoft is more likely to become a Non-Practicing Entity (NPE), or a patent troll.

Over the past few years, the software company has signed a license agreement with 20 firms that produce devices equipped with the Android OS or Chrome OS, charging licensing fees.

Meanwhile, much attention is being paid to whether or not Microsoft's move will affect the decision by the Korea Fair Trade Commission to approve Microsoft's purchase of Nokia. The local electronics industry expressed concern to the country’s anti-trust regulator over Microsoft's apparent misuse of patent rights.

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