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. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Microsoft/Windows
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Microsoft Wins Patent Case Against Motorola
Microsoft Wins Patent Case Against Motorola

By Seth Fitzgerald
September 7, 2013 8:42AM

    Bookmark and Share
Motorola had agreed to offer the licensing at a lower rate, but then asked for 2.25 percent of the sale price of each Xbox and copy of Windows Microsoft sold. Microsoft refused to pay, and as a result Motorola sought an injunction in Germany against the company. To avoid distribution problems in Europe Microsoft moved a warehouse from Germany to the Netherlands.
 



A federal jury has ruled in Microsoft's favor in a patent case against Motorola, which had been brought on by Motorola's decision to go against an agreement to license essential patents at a reasonable rate. The ruling has resulted in Microsoft receiving $14 million, however, that is only half of what the company was asking for in court.

The jury that made this decision was involved in the second of two rounds in U.S. District Court in Seattle between Microsoft and Motorola over the patents. In the first round a judge decided on reasonable royalty rates for Microsoft to pay Motorola, amounting to an estimated $1.8 million annually. Before the trial, Motorola, owned by Google, had sought rates that Microsoft estimated would have cost it $4 billion a year.

"This is a landmark win for all who want products that are affordable and work well together," said David Howard, Microsoft deputy general counsel, in a statement after the jury's decision. "The jury's verdict is the latest in a growing list of decisions by regulators and courts telling Google to stop abusing patents."

The Patents

Microsoft had argued the patents in question were "standard-essential," meaning that the licensed technology was commonplace and necessary and not "unique" to a device from one specific company. Although the patents are valid, companies are required to offer licensing at lower rates.

Motorola had agreed to offer the licensing at a lower rate, but then asked for 2.25 percent of the sale price of each Xbox and copy of Windows Microsoft sold. Microsoft refused to pay, and as a result Motorola sought an injunction in Germany against the company. To avoid distribution problems in Europe Microsoft moved a warehouse from Germany to the Netherlands, which it said cost it $23 million to accomplish.

Relocating the warehouse constituted $11 million of the Jury-awarded settlement, with the remaining $3 million attributed to Microsoft's legal fees related to fighting a ban on its products.

Abuse of Patents

This is not the only standard-essential patent case to make headlines recently. Samsung lost a back-and-forth battle with the U.S. International Trade Commission last month after the panel ruled that Samsung had infringed on Apple patents. However, a ban on Samsung products as a result of the ruling will not go into effect until after a 60-day presidential review period expires.

Apple and Samsung have been involved in a number of patent battles in venues worldwide over the last several years, with one side or the other occasionally gaining advantage.

The real issue in most of these cases, whether they involve Microsoft, Motorola, Samsung, Apple or another company, is standard-essential patents. There are few that argue with the idea that patents are great at protecting unique and innovative ideas, but standard patents have recently come under fire.

Most people that criticize these patents bring up the valid point that just because someone was first to do something does not mean that other companies should be prevented from doing it. For example, if someone patented the use of a physical home button on a smartphone, should all other companies be prevented from using a home button without paying a fee? With the U.S. still handing out patents for ideas like this, more and more court cases continue to appear.
 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Microsoft/Windows
1.   Can One Size Windows OS Fit All?
2.   Microsoft CEO Sees 'Bold' Plan Ahead
3.   Design Central to Microsoft Future
4.   Lenovo Still in Small Windows Tablets
5.   How Chrome Eats Your Battery Life


advertisement
Microsoft CEO Sees 'Bold' Plan Ahead
With unified Windows for all platforms.
Average Rating:
Design Central to Microsoft Future
New ethos a break from functional past.
Average Rating:
Bing Lets Europeans Be 'Forgotten'
Following in Google's footsteps.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

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 | CRM Systems | 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

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.