Microsoft suggests a flat fee while Motorola wants a cut in Xbox patent case

Dec 18, 2012
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Microsoft suggests a flat fee while Motorola wants a cut in Xbox patent case

It would appear that one of the many titanic battles in the patent universe is coming to fisticuffs for Motorola and Microsoft as they duel between one another over how much the latter owes the former for patented technology used in the Xbox. The trial at hand was held on November 13th through the 20th down in the Western District of Washington in a federal court designed to settle on how much Microsoft owes Motorola for two of its standard, essential patents used in the Xbox gaming console as well as products such as Windows 7. Now the talks have hit monetary amounts with suggested sums equalling out to be millions of dollars apart from one another.

If Microsoft had its way in this case as it is today, the amount of cash paid to Motorola would be more than $736,000 per year for Motorola's 802.11 wi-fi technology and no more than $502,000 per year for Motorola's H.264 video compression patent. This information comes from a redacted filing read by Reuters this week. The filing was revealed on Monday of this week and also contained suggestions from Motorola.

If Motorola had their way, they'd be receiving 2.25 percent of the selling price of Microsoft products with their patents embedded within them. This includes Windows 7 and the Xbox, for starters. This amount of cash was said to appear acceptable to Microsoft just so long as a cap was set in place for final amounts each year with different percentages listed for each of the two patents.

For the 802.11 patents Motorola suggested that Microsoft pay them 1.15 percent to 1.73 percent of Microsoft end-product prices. Microsoft suggested that for the H.264 patent portfolio, the cost be capped between $100 million and $125 million per year. The case will continue early 2013 with US District Judge James Robart ruling the court. Have a peek at the timeline below for more Motorola vs Microsoft action and stay tuned as the cash is tossed!


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