Samsung says Microsoft broke promises with Nokia purchase

Acquisition makes firm a direct competitor in hardware business, argues Galaxy S5 maker

Samsung has accused Microsoft of breaking the terms of the two firms' Business Collaboration Agreement (BCA) with its purchase of Nokia, claiming it makes the US tech giant a direct hardware competitor.

Samsung made the accusation in a filing with the US District Court, Southern District of New York, that was later published online.

"Samsung and Microsoft agreed in the Patent Licensing Agreement [PLA] and BCA to cross-license their patents and collaborate in developing and marketing Windows-based smartphones," read the document.

"Underlying those interconnected and mutually dependent agreements was the assumption that the parties were not competitors.

"But within three years of signing the PLA and BCA, Microsoft merged with a major Samsung competitor - Nokia's Devices and Services business - and began manufacturing its own smartphones.

"In doing so, Microsoft violated the BCA's anti-assignment provision and denied Samsung the fruits of the parties' agreement."

The filing was a reaction to a prior accusation by Microsoft that Samsung owes it $6.9m after delaying an agreed $1bn payment.

Samsung had accused Microsoft in April of breaking the BCA's terms with its Nokia purchase. Microsoft declined V3's request for comment on Samsung's latest filing.

The filing is the latest step away from Microsoft by Samsung. Since entering the smartphone market Samsung has increasingly chosen to focus on developing Android smartphones.

The tactic has proved successful and Samsung is the world's biggest smartphone maker, according to the latest statistics from analyst house IDC.