Samsung Electronics is seeking arbitration in Hong Kong to resolve issues that have sprung up in a 2011 patent agreement with Microsoft.
The arbitration proceeding was disclosed in a lawsuit initiated by Microsoft in August. In that lawsuit, Microsoft accused Samsung of trying to back out of paying patent royalties regarding the use of Android technologies due to Microsoft’s acquisition of Nokia’s smartphone business.
In a statement provided to GeekWire, Microsoft said it does not agree with the proposed change in venue. “Microsoft and Samsung agreed in the contract that the appropriate venue to interpret the business collaboration agreement is New York. We still believe that to be true,” according to a spokesperson.
The royalty payments under discussion are significant, totaling $1 billion from Samsung in 2013 alone, according to court documents. Samsung, which is the dominant Android smartphone maker, is required to write Microsoft a check because of certain features in Google’s operating system that allegedly infringe the Redmond-based company’s intellectual property.
Reuters said Samsung initiated the arbitration process in Hong Kong today, with the office of the International Court of Arbitration of the International Chamber of Commerce.
In Microsoft’s original complaint, it was seeking a declaratory judgment, stating that the patent agreement and business collaboration agreement is still valid. It also wanted Samsung to pay interest of $6.9 million that was accrued from the delay of Samsung’s scheduled patent royalty payment.
