Microsoft, Motorola millions apart on royalty payment case

SEATTLE Tue Dec 18, 2012 9:16am IST

A man walks by a video display at the Motorola booth on the second day of the Consumer Electronics Show (CES) in Las Vegas January 7, 2011. REUTERS/Rick Wilking/Files

A man walks by a video display at the Motorola booth on the second day of the Consumer Electronics Show (CES) in Las Vegas January 7, 2011.

Credit: Reuters/Rick Wilking/Files

Related Topics

Stocks

   

SEATTLE (Reuters) - Microsoft Corp (MSFT.O) and Google Inc's (GOOG.O) Motorola phone unit remain millions of dollars apart in their respective valuations of video and wi-fi patents at issue in a pivotal case before a federal judge in Seattle.

The outcome, expected sometime next year, could be a key development in the balance of power between Microsoft and Google - and the rest of the technology industry - in the running battle over ownership of the technology underlying increasingly popular smartphones, tablets and game consoles.

A trial, held November 13-20 in the Western District of Washington federal court, was designed to settle the matter of how much Microsoft must pay Motorola for use of two of its standard, essential patents used in its Xbox game console and other products.

In redacted post-trial filings made public on Monday - essentially its final arguments before the judge - Microsoft argued that it should pay no more than $502,000 per year for Motorola's H.264 video compression patent, and no more than $736,000 per year for Motorola's 802.11 wi-fi technology.

Motorola - acquired by Google earlier this year, partly for its valuable patent portfolio - submitted a far larger valuation.

In its filing, also made public in redacted form on Monday, Motorola said it was due payment of 2.25 percent of the selling price of Microsoft products such as the Xbox and Windows 7 operating system that use the patents in question.

Motorola argued that a fair cross-licensing deal would result in net payments to Motorola which it would be willing to cap somewhere between $100 million and $125 million per year, solely for the H.264 patent portfolio.

For the 802.11 patents, it claimed a net payment of 1.15 percent to 1.73 percent of Microsoft end-product prices, which would mean millions of dollars more per year.

U.S. District Judge James Robart is expected to rule on the case early next year.

The case in U.S. District Court, Western District of Washington, is Microsoft Corp. vs. Motorola Inc., 10-cv-1823.

(Reporting By Bill Rigby; Editing by Sanjeev Miglani)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Smartphone Wars

Reuters Showcase

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay".  Full Article | Related Story 

 Rubin Quits

Rubin Quits

Android co-founder Andy Rubin to leave Google.  Full Article 

Glowing Flower

Glowing Flower

Video: Genetically altered glowing flower on display in Tokyo.  Video 

Web Fast Lanes

Web Fast Lanes

Comcast, AT&T seek to reassure on no plans for Internet 'fast lanes'.  Full Article 

Rocket Technology

Rocket Technology

New U.S. rockets include crew launch-escape systems.  Full Article 

Tech Reshuffle

Tech Reshuffle

Twitter product chief sidelined as user engagement slides.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage