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

Posted: , by Alan F.

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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

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posted on 19 Jun 2013, 19:18 10

1. InspectorGadget80 (unregistered)

Motorola shows u WHO'S BOSS M$

posted on 19 Jun 2013, 19:24 2

2. thecorrescode (Posts: 38; Member since: 28 Mar 2013)

Alan F is starting to become Florian Mueller...

posted on 19 Jun 2013, 20:04 1

4. MartyK (Posts: 932; Member since: 11 Apr 2012)

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

posted on 19 Jun 2013, 22:36 2

6. flynfree (Posts: 374; Member since: 09 Jun 2013)

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

posted on 19 Jun 2013, 23:47 4

7. Sniggly (Posts: 7305; Member since: 05 Dec 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.

posted on 20 Jun 2013, 00:41 2

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.

posted on 20 Jun 2013, 02:28 1

10. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

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

posted on 20 Jun 2013, 12:43

14. jacko1977 (Posts: 428; Member since: 11 Feb 2012)

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

posted on 20 Jun 2013, 00:57 3

9. Meleagru (Posts: 92; Member since: 03 Dec 2012)

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

posted on 20 Jun 2013, 04:18 1

11. jibraihimi (Posts: 769; Member since: 29 Nov 2011)

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

posted on 20 Jun 2013, 05:57 2

12. volcano (Posts: 348; Member since: 25 Jan 2013)

go home motorola you are drunk

posted on 20 Jun 2013, 08:31

13. techguyone (Posts: 207; Member since: 18 May 2013)

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

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