Motorola turns down Microsoft's royalty offer, decides to keep $100 million bond

Motorola turns down Microsoft's royalty offer, decides to keep $100 million bond
Back in April, in Seattle, U.S. District Judge James Robart ruled that Microsoft should pay Motorola only $1.8 million a year as a royalty payment to use Motorola's standards-essential patents. These are patents that a company cannot avoid using to build a specific device. Negotiations over licensing of these patents is supposed to be done in a "Fair, Reasonable, and Non-Discriminatory" fashion, hence they are called FRAND patents.

The patents involved with this particular case are the H.264 video standard and the 802.11 wireless standard and Motorola, a wholly owned subsidiary of Google, was seeking $4 billion a year for the rights to use them. The technology is used for Windows Phone and for the Xbox and Redmond based Microsoft recently sent a letter to Motorola suggesting that it make a $6.8 million payment to cover all past use of the patents. Motorola has refused the payment and is continuing to hold on to a court-ordered $100 million bond obtained by Microsoft even though the actual damages that were awarded by the judge were well under this amount.

In addition to paying $6.8 million to catch up with past use of the patented technology, Microsoft said it would also pay Motorola future royalty rates based on future rate-setting court decisions. Whether you are an attorney or just play one on television, you can check out the legal documents below, including a copy of the letter from Microsoft to Motorola.

source: Scribd via electronista



1. InspectorGadget80 unregistered

Motorola shows u WHO'S BOSS M$

2. thecorrescode

Posts: 40; Member since: Mar 28, 2013

Alan F is starting to become Florian Mueller...

4. MartyK

Posts: 1043; Member since: Apr 11, 2012

He has always been Florian Mueller little brother...this shouldn't surprise anyone who has ever read any article of his...smh

6. flynfree

Posts: 374; Member since: Jun 09, 2013

Good newsssss! !!!!!!!!!!!!!!!!!!!!

7. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Global sales of the Xbox line alone since its inception have been 100 million worldwide. Not including Windows Phone sales, Microsoft basically just offered to pay 7 cents per device it sells using Motorola's technology. This is the same company that's more than happy to collect 15 DOLLARS per device, or 21,000% of what it offered Motorola, from HTC and Samsung each for the use of ITS patents. In other words, Microsoft can go screw itself.

8. Mxyzptlk unregistered

I thought this fell under the notion of being a FRAND patent? I think that was a little too generous of an offer to Motorola.

10. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Because you misunderstand what FRAND is supposed to be. You think that FRAND patents should be licensed for free.

14. jacko1977

Posts: 428; Member since: Feb 11, 2012

just like apple and the ruling of 1billion overpay for FRAND patent's

9. Meleagru

Posts: 92; Member since: Dec 03, 2012

Is Motorola appealing the ruling? Because otherwise what they are doing seems borderline illegal.

11. jibraihimi

Posts: 802; Member since: Nov 29, 2011

Greed hurts self in long run......

12. volcano

Posts: 348; Member since: Jan 25, 2013

go home motorola you are drunk

13. techguyone

Posts: 214; Member since: May 18, 2013

What Sniggly said was right - if it's good for the goose it's good for the gander, regardless of MxyTroll's views.

* Some comments have been hidden, because they don't meet the discussions rules.

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