Microsoft has Android device makers by the short and curlies when it comes patent fees. Virtually all manufacturers who are creating Android smartphones and tablets license patents from Microsoft. It seems like Microsoft is set to get a taste of its own medicine from Motorola. Apparently, a German court appears set to side with Motorola in a patent dispute that has to do with patents used for video compression and decompression technology. Microsoft is allegedly using patented tech in some of its most important and popular products.
The Microsoft products that Motorola subsidy General Instrument Corporation alleges infringe on its patents include Windows 7, IE9, Windows Media Player, and Xbox 360. The amount of money generated in sales from Windows 7 and the Xbox 360 is massive and Motorola is seeking 2.25% of all the sales of those products in royalties.
Motorola likes the 2.25% number, and wanted Apple to pay that much for patents it was infringing on. Microsoft has never confirmed exactly how much in royalties it collects from Android device makers, but company attorney Brad Smith has hinted before that about five dollars per device is a fair number. The two patents at the core of the Motorola versus Microsoft case help reduce the bandwidth needed for streaming video online, reducing the bandwidth needed for streaming is hugely important for online video.
[via Seattle Times]