By Kim Yoo-chul
Samsung Electronics lost its bid to put claims by Microsoft (MS) over smartphone patent royalties on hold until a Hong Kong-based arbitration body releases its results.
U.S. District Judge Jed Rakoff in New York said the ongoing Samsung-Microsoft lawsuit will proceed despite the ongoing arbitration.
Samsung earlier initiated the arbitration process in Hong Kong with the office of the International Court of Arbitration of the International Chamber of Commerce to reach settlements over royalty payments that have arose in a contract with its long-time U.S. partner.
"The order in the New York means that the New York court and an arbitration body will handle the case separately. For the Samsung side, this isn't satisfactory," a local patent expert said.
Both MS Korea and Samsung declined to comment.
Microsoft sued Samsung in August alleging that the South Korean technology giant breached a contract by deliberately refusing to pay smartphone royalties.
Microsoft claimed Samsung still owed $6.9 million in interest on more than $1 billion in patent royalties it delayed paying.
Samsung Electronics countersued and insisted Microsoft's Nokia acquisition raised anti-trust issues as the acquisition resulted in Microsoft becoming Samsung's direct competitor.
Samsung is aiming to nullify the contract and asked the Fair Trade Commission in Korea to review the Microsoft-Nokia deal.
The dispute comes at a time when Samsung's smartphone business has continued declining hit by the rise of budget Chinese rivals.