Microsoft has scored another victory in its legal battle with Motorola Mobility over patent licensing fees. A federal jury in Seattle awarded Microsoft about $15 million in damages after finding that Google’s Motorola failed to license standard essential patents at reasonable terms. While the award is still a hefty amount, it’s only about half of what Microsoft was seeking.
The case concerns wireless and video technology patents that Microsoft uses in popular products such as its Xbox video game console. Microsoft sued Motorola over the use of these patents in 2010, claiming that Motorola was demanding unreasonable royalties at the rate of 2.25% of the product price. Back in April, Microsoft won its first victory when a federal judge ruled that Microsoft should pay royalties of $1.8 million annually, rather than the billions Motorola was demanding.
Motorola was naturally disappointed in the decision and said it would appeal. Meanwhile, Microsoft’s general counsel called the ruling a “landmark win.” The case has larger implications for what constitutes fair, reasonable, and nondiscriminatory terms (known as FRAND) for licensing standard essential patents. Though companies are required to license these patents, some have sought to harm competition through extracting excessive royalties and this decision could be a step toward the formation of a framework for determining fair fees.
Original article: Microsoft Wins Damages in Motorola Patent Dispute
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