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Microsoft to Moto: We'll give you $1m a year for your patents

Googorola to Microsoft: How about $100m instead?

Internet Security Threat Report 2014

Microsoft and Googorola are having a slight difference of opinion when it comes to how much Redmond should pay for Motorola Mobility's video and Wi-Fi patents.

Microsoft reckons that no more than $502,000 a year is fair for Moto's H.264 video patent - which is used in Xboxes and other MS gear - and $736,000 a year is a fair price for Wi-Fi. But Motorola is thinking more along the lines of $100m to $125m for the H.264 patent portfolio alone, according to redacted post-trial filings from both companies.

Judge James Robart is expected to rule on the case next year, after hearing the firms argue in November over Google-owned Motorola's standards essential patents (SEPs).

Motorola is sticking to its request for 2.25 per cent of the selling price of infringing MS products, which it has generously offered to cap at between $100m and $125m for a video cross-licensing deal. For Wi-Fi patents, Moto is looking for 1.15 per cent to 1.73 per cent of Microsoft gear's prices, millons more dollars every year.

Standards-essential patents have not become heavy-hitters in court, mostly because SEP owners are obliged to license them on fair, reasonable and non-discriminatory (FRAND) terms. But while Apple sues for design and technology patents, in many cases mobe-makers like Nokia, Motorola and Samsung only have their SEPs to try to throw back at them. ®

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