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Microsoft wins court ruling cutting Motorola licensing rates
2013-04-26 10:20:00| Telecompaper Headlines
(Telecompaper) A US judge has sided with Microsoft in the first round of a patent dispute with Google's Motorola Mobility, over how much Microsoft should pay to license standards-essential video and Wi-Fi patents held by Motorola. In a ruling in Seattle, District Judge James Robart ruled that the fair rate Microsoft should pay for using Motorola's intellectual property in its products were just a few cents per unit, rather than the several dollars Motorola had sought, the Financial Times reports. This means an annual royalty owed by Microsoft of USD 1.8 million, rather than the hundreds of millions of dollars Motorola had demanded. The judge's ruling sets a template for future royalty negotiations for standards-essential patents and will form the basis of a forthcoming jury trial to determine whether the difference between what Motorola had demanded and the final price determined by the judge constitutes a breach of its contract to Microsoft. Motorola maintained that it licenses its patents at "reasonable rates consistent with those set by others in the industry". It may still appeal the ruling.
Tags: rates
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Category:Telecommunications
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