Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Mobile Industry News
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Google Gets Pennies on Patent Dollars in Microsoft Fight
Google Gets Pennies on Patent Dollars in Microsoft Fight

By Jennifer LeClaire
April 26, 2013 2:04PM

    Bookmark and Share
Motorola in its legal claim asked for 2.25 percent of the sales price for every Xbox and every copy of Windows sold. Microsoft figured that would equal about a $4 billion payment to Motorola every year. Instead, the judge set the royalty rates at $1.8 million a year. Microsoft had estimated fair value at $1.2 million a year for licensing the patents.
 


Motorola may have won the patent battle, but it appears Microsoft won the war -- at least from a financial perspective. Instead of shelling out billions in royalties, the software giant, which boasts a huge patent portfolio of its own -- is paying pennies on the patent dollar.

That's thanks to a Seattle federal judge who issued a ruling in favor of Microsoft in its heated patent battle with Google-owned Motorola.

U.S. District Judge James Robart ruled in Motorola's favor, agreeing that Microsoft had trespassed on its patents and then decided how much Microsoft should pay for its violation of intellectual property laws. In the end, Robart settled on a figure much closer to what Microsoft proposed than what Motorola wanted.

Wanted: $4 Billion

Motorola in its legal claim asked for 2.25 percent of the sales price for every Xbox and every copy of Windows that Microsoft sold. Microsoft figured that would equal about a $4 billion payment to Motorola every year.

Robart didn't award Motorola anywhere near that much. He decided to set the royalty rates at $1.8 million a year. Microsoft had estimated fair value at about $1.2 million a year for licensing the Motorola patents.

"This decision is good for consumers because it ensures patented technology committed to standards remains affordable for everyone," David Howard, Microsoft's deputy general counsel, said in a statement.

Matt Kallman, a spokesman for Motorola Mobility, said in a statement after the ruling, "Motorola has licensed its substantial patent portfolio on reasonable rates consistent with those set by others in the industry."

Lengthy ROI

Google acquired Motorola about a year ago for $12.5 billion, or $40 a share, after losing a bid for Nortel Networks' patent portfolio. Google described the acquisition as a move to supercharge its Android ecosystem. Many observers believe it really meant the company needed to beef up its patent portfolio.

At the time of acquisition, Google CEO Larry Page noted that Motorola has a history of more than 80 years of innovation in communications technology and products, and in the development of intellectual property, that helped drive a mobile-computing revolution. Motorola introduced the first portable cell phone about 30 years ago and was a founding member of the Open Handset Alliance that worked to develop Android.

But Motorola's patent portfolio hasn't really paid off for Google, at least not yet. A $4 billion a year royalty from Microsoft would have been a boon, but it will take a long time for the tech giant to make up for the $12.5 billion it spent at a pace of less than $2 million a year. Still, the patents could come in handy to defend Android, which many believe was the entire point of the acquisition.
 

Tell Us What You Think
Comment:

Name:



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Mobile Industry News
1.   OnePlus One Boasts Android Weapon
2.   Samsung: $2.2B Too Much for Apple
3.   Microsoft-Nokia Deal Closes this Week
4.   Mobile Ad Platform From Facebook?
5.   Google, Rockstar Suit Stays in Calif.


advertisement
OnePlus One Boasts Android Weapon
Smartphone could shake up market.
Average Rating:
Samsung: $2.2B Too Much for Apple
Says $38.4M more like it for patents.
Average Rating:
Google, Rockstar Suit Stays in Calif.
Judge not fooled by Apple's tricks.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.