Samsung files for arbitration to settle Microsoft dispute

October 7, 2014


SEOUL (Yonhap) — South Korea’s tech giant Samsung Electronics Co. filed for an arbitration with a Hong Kong-based international court for a patent fee dispute with U.S. Microsoft Corp., industry sources said Wednesday.

Samsung is seeking the settlement at the International Court of Arbitration under the International Chamber of Commerce to resolve discord surrounding royalty payments under the two’s cross-licensing agreement, the source said.

Microsoft responded that the most suitable place to settle the dispute is New York, adding that this is also stated in the contract with Samsung.

A spokesman for the Seoul-based Samsung said the company currently has no official stance or explanation for the decision.

The move came as Microsoft filed a suit in the Southern District of New York in August after trying unsuccessfully for months to resolve its disagreement with Samsung on a 2011 royalty agreement. It claimed that Samsung unilaterally decided not to abide by the contract.

Samsung had made royalty payments for two years under the deal. In 2013, however, the tech giant was late with its payment and failed to pay the U.S. company interest of US$6.9 million for the delay.

Samsung claims Microsoft’s latest acquisition of Nokia breached their cross-licensing agreement. The South Korean firm paid Microsoft $1 billion for patents last year.