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Motorola Wants $100 Million+ From Microsoft Over Patents

By - Source: Reuters | B 18 comments

Microsoft doesn't want to pay more than $502,000 a year to license Motorola's video patents.

While Microsoft believes it shouldn't pay more than $502,000 a year to license Motorola's video patents, the Google-owned smartphone manufacturer has demanded between $100 million and $125 million on an annual basis.

Court filings revealed that Microsoft is willing to pay as much as $502,000 per year to license Motorola's H.264 video patents. The software giant also said it would pay as much as $736,000 for Motorola's 802.11 wireless technology.

Motorola, however, doesn't want to settle with a one-off fee. It wants Microsoft to pay a percentage of its revenue stemming from the allegedly infringing products; it wants a 2.25 percent royalty on H.264 technology, which would range between $100 million and $125 million per year in fees.

The company is also demanding a royalty payment of 1.15 percent to 1.73 percent for its WiFi patents, which could possibly lead to further tens of millions of dollars per year.

Microsoft argued that its rival's H.264 and WiFi patents should be offered at a "fair rate" due to the fact that they're standard-essential intellectual property. Should businesses license standard-essential patents, they are required to request fees that are considered fair, reasonable and nondiscriminatory (FRAND).

The Windows creator has maintained its position regarding Motorola's 2.25 percent royalty request being unfair. The latter has also alleged that the Xbox 360 violates its patents as well. That said, a judge recently ruled that Moto will not be granted an injunction against Microsoft products in the U.S. and Germany.

 

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  • -1 Hide
    john15v16 , December 19, 2012 2:33 PM
    Go get em' google! ...next up...apple...
  • 0 Hide
    ojas , December 19, 2012 3:01 PM
    Quote:
    Court filings revealed that Microsoft is willing to pay as much as $502,000 per year to license Motorola's H.264 video patents. The software giant also said it would pay as much as $736,000 for Motorola's 802.11 wireless technology.

    Quote:
    Motorola, however, doesn't want to settle with a one-off fee.

    Yay go Zak!

    :/ 
  • 3 Hide
    jaber2 , December 19, 2012 3:04 PM
    It will all come back to Microsoft when it sues Google and Moto for their use of Microsoft patents.
  • 0 Hide
    Anonymous , December 19, 2012 3:41 PM
    ojas I know you want to pick on people, but what you think is wrong is correct. one time fee inplys once a year where no matter how much revanue they make the price is the same, as opposed to a % of revanue would consistantly change based on sales.
  • 1 Hide
    -Jackson , December 19, 2012 3:49 PM
    Quote:
    ojas I know you want to pick on people, but what you think is wrong is correct. one time fee inplys once a year where no matter how much revanue they make the price is the same, as opposed to a % of revanue would consistantly change based on sales.

    Actually, it really depends on how you look at it; A large majority of the time, it is used to implicate a one-time only fee, hence the term "one-off".
  • -4 Hide
    twelve25 , December 19, 2012 4:02 PM
    john15v16Go get em' google! ...next up...apple...


    Then who is going to keep google in check? Google knows everything about everyone. I don't want them dominating the world, too.
  • -2 Hide
    the1kingbob , December 19, 2012 4:19 PM
    I didn't realize H.264 made up 2.25% of windows OS.... Come on, really? Microsoft owes them money, but 2.25% seems a bit crazy for something that isn't used often by a large portion of windows users. I can understand the wifi number a bit more, that feature is used quite often on most platforms.
  • -2 Hide
    pacomac , December 19, 2012 4:26 PM
    Why should Motorola demand a percentage of the selling price. It costs no more to put these technologies in a cheap phone than an expensive one. This is just greed on the part of Motorolla, trying the same trick they played on Apple!

    Working on a percentage of the selling price means you have to work with a limited number of FRAND patents before you are all out of profit, no matter how high the selling price. How can anyone creat a top notch phone with all the latest technologies?
  • -1 Hide
    DRosencraft , December 19, 2012 5:14 PM
    Motoroa is reaching too far. I am all for a patent holder being fairly compensated for their patent. If someone else builds a new standard for implementing data transfers, they have the right to charge for its use. But seriously? $100-$125 million? A YEAR? Something a bit higher than $0.5 Million may be due, but a hundred million is overkill.
  • 2 Hide
    FSCx64 , December 19, 2012 5:56 PM
    the1kingbobI didn't realize H.264 made up 2.25% of windows OS.... Come on, really? Microsoft owes them money, but 2.25% seems a bit crazy for something that isn't used often by a large portion of windows users. I can understand the wifi number a bit more, that feature is used quite often on most platforms.


    I don't think this is about money. I think this is a way for Motorola and Google to push M$ to cross license some of their patents. What I've understood right now $10 from every Android phone sold is going to Ballmers company.

    If we think average Android phone price is 350, then 2,9% goes to M$. And I am sure Microsofts input towards Android is worth that 2,9 %...not.

    I can be wrong.. wouldn't be the first time :D 
  • -3 Hide
    WyomingKnott , December 19, 2012 6:29 PM
    Another "Apple tort"
  • 1 Hide
    burmese_dude , December 19, 2012 6:39 PM
    Pay up tiles-loving wiches at Mofo Micro.

    You make a profit on each Android device sold. So why shouldn't Google make a little for every Window sold if Window uses Moto's patent. What goes around, comes around
  • 0 Hide
    internetlad , December 19, 2012 7:09 PM
    To be fair, as far as businesses go, 100 million is a pittance. Hell, they've probably sold 100 million Xbox 360s, is it really that unreal that Motorola wants a buck or two per unit sold since the product contains a patented part?

    Not saying I like these legal pissing matches, but as far as settlements go, that doesn't seem like an especially unreasonable amount.
  • 5 Hide
    belardo , December 19, 2012 7:31 PM
    Punch Microsoft in the face again.
  • -1 Hide
    ojas , December 19, 2012 7:46 PM
    wreed1346ojas I know you want to pick on people, but what you think is wrong is correct. one time fee inplys once a year where no matter how much revanue they make the price is the same, as opposed to a % of revanue would consistantly change based on sales.

    Not people, only Zak.

    -JacksonActually, it really depends on how you look at it; A large majority of the time, it is used to implicate a one-time only fee, hence the term "one-off".

    This.
  • 2 Hide
    anti-painkilla , December 19, 2012 8:11 PM
    They just want the $10 back per Android device.
  • -2 Hide
    sykozis , December 19, 2012 10:56 PM
    FSCx64I don't think this is about money. I think this is a way for Motorola and Google to push M$ to cross license some of their patents. What I've understood right now $10 from every Android phone sold is going to Ballmers company.If we think average Android phone price is 350, then 2,9% goes to M$. And I am sure Microsofts input towards Android is worth that 2,9 %...not.I can be wrong.. wouldn't be the first time

    That $10 per phone, covers several patents that Google knowingly and willfully fringed. Google came out better paying $10 per phone willingly....than they would have if it had gone to court.

    FSCx64I don't think this is about money. I think this is a way for Motorola and Google to push M$ to cross license some of their patents. What I've understood right now $10 from every Android phone sold is going to Ballmers company.If we think average Android phone price is 350, then 2,9% goes to M$. And I am sure Microsofts input towards Android is worth that 2,9 %...not.I can be wrong.. wouldn't be the first time

    There's nothing wrong with Motorola making money on their patents. The issue is how much they think those patents are worth. MS is receiving $10 in total for every Android device sold. Google knowingly and willfully infringed multiple patents held by MS. Motorola wants more for 1 patent, than MS is making off the multiple patents that the $10 per android device covers.
  • -1 Hide
    mman74 , December 20, 2012 12:05 AM
    "Standard-essential" ip? Let me tell you what is standard, receiving emails on a phone is pretty standard, but you guys make every Android manufacturer pay you a lump sum for EVERY phone sold. Video codec patents - not so essential in my book. What is this name your own pricing for the patents people use off you, and name your own pricing for the patents you need to pay? Why pay 500,000? Why not just say you'll only pay $5?!#@@$$