Samsung worries that its Microsoft royalty payments amount to collusion
Samsung was quick to cite the acquisition of Nokia as a reason for holding out on Microsoft's royalty payments, but there weren't many details. Just what had it spooked? Thanks to some new court filings, we now have a clearer sense of its motivations. Simply put, the Korean tech giant is worried about "charges of collusion" now that Microsoft is a direct competitor in the smartphone business. The patent deal requires that Samsung not only make Windows Phones, but hand over sensitive business details -- both big problems when Microsoft could use them to gain a competitive edge. Samsung already stopped handing over those trade secrets over jitters that American antitrust regulators would step in.
It's not clear that the court will buy this argument. While there is a real concern about working too closely with a competitor, that doesn't necessarily give the company an escape from its current agreement -- it may still have to pay up, at least in the short term. Whether or not it does, it's clear that Samsung doesn't believe the royalty arrangement should continue as-is.
