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
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:





 Microsoft/Windows
1.   Win Phone 8.1 Update Already on Way
2.   Yammer Moved to Office 365
3.   Can One Size Windows OS Fit All?
4.   Microsoft CEO Sees 'Bold' Plan Ahead
5.   Future of Laid-Off MS Employees


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
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
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.
 

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
 
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

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.