News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Personal Tech / A Rude Patent Surprise for Google
DDoS Protection Powered By Verisign
Google Gets Pennies on Patent Dollars in Microsoft Fight
Google Gets Pennies on Patent Dollars in Microsoft Fight
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
APRIL
26
2013


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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN PERSONAL TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 

Mobile Technology Spotlight
Apple Sets Sept. 9 Event: iPhone 6, iWatch on Tap?
Save the date. Apple formally announced that its long-anticipated “special event," will take place on September 9. Does the tech giant have the iPhone 6, and the iWatch up its sleeve?
 
Samsung's New Smart Watch Makes Calls Without Phone
Following up on the Gear 2, Samsung has unveiled a new 3G smart watch, the Gear S, that stands out in its ability to make phone calls and send text messages without a smartphone.
 
Apple Loses Bid To Block Sales of 9 Samsung Phones
A federal judge has rejected Apple's attempt to block the sale of several older Samsung smartphones that copied features in the iPhone, saying Apple hadn't proven the intellectual theft hurt sales.
 

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.