Seattle Court Rules Patents Used by Microsoft Worth $1.8 Million a Year, Not $4 Billion

The Federal District Court in Seattle, Washington has given Google's Motorola Mobility a slap in the face, ruling that its FRAND patent fees collected from Microsoft to be worth only about $1.8 million a year. The court said that the H.264 video standard and the 802.11 wireless standard patents weren't worth the $4 billion Motorola was seeking to collect.

U.S. District Judge James Robart determined that Google’s Motorola Mobility unit is entitled to about $1.8 million a year from Microsoft, noting that there are 2 different entities with patents essential to 802.11 networking. If each of them got the 1.15 percent to 1.73 percent royalty that Motorola wanted, the cost of wireless networking would exceed the current price of the Xbox 360 Microsoft was using it for.

“This decision is good for consumers because it ensures patented technology committed to standards remains affordable for everyone," Microsoft Deputy General Counsel David Howard said in a statement.

“Motorola has licensed its substantial patent portfolio on reasonable rates consistent with those set by others in the industry,” the company said in a standard boilerplate statement.

You can read the entire ruling here. No doubt Motorola will be looking at ways to deal with this latest court decision, including options for appealing it.

Source: AllThingsD



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