first of two patent trials versus Google
Inc's Motorola Mobility unit on
Thursday, as a federal judge in Seattle
ruled largely in its favor.
U.S. District Judge James Robart in
Seattle said Microsoft owed only a
fraction of the royalties Motorola had
claimed for use of its technology in
Microsoft's Xbox console.
Motorola had sought as much as $4
billion a year for use of its so-called
standard, essential wireless and video
patents, while Microsoft argued its
rival deserved about $1 million a year.
Robart decided the appropriate
payment was about $1.8 million.
(Also see: Microsoft, Motorola
unlikely to reach settlement in patent
case )
Microsoft welcomed the outcome.
"This decision is good for consumers
because it ensures patented
technology committed to standards
remains affordable for everyone," said
David Howard, Microsoft's Deputy
General Counsel, in a statement.
A Motorola representative said
"Motorola has licensed its substantial
patent portfolio on reasonable rates
consistent with those set by others in
the industry."
The ruling is a blow for Google, which
bought Motorola for $12.5 billion,
partly for its intellectual property
stockpile. Robart's low valuation
makes Motorola's patents a weaker
bargaining chip for Google to negotiate
licensing deals with others.
The second patent trial between the
two, set for this summer in Seattle,
will decide if Motorola breached its
duty to license its standard, essential
patents to Microsoft on fair terms.
The Microsoft-Motorola spat is just
one strand of a wide-ranging battle
over who owns the technology behind
smartphones and other new electronic
devices.
Apple Inc and Microsoft have been
litigating in courts around the world
against Google and its partners such
as Samsung Electronics Co Ltd, which
use the Android operating system on
their hardware.
Apple contends that Android is
basically a copy of its iOS smartphone
software and Microsoft holds patents
it contends cover a number of Android
features.
The case in U.S. District Court,
Western District of Washington is
Microsoft Corp. vs. Motorola Inc., 10-
cv-1823.
© Thomson Reuters 2013
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