Microsoft wins case against Google in patent royalty battle

Google’s nose has been bloodied slightly with the news that Microsoft has emerged victorious with a court ruling in a case that has been dragging on since 2010. The ruling could result in a decrease in royalty payments paid by electronics manufacturers for patents pertaining to Wi-Fi and video downloads. The case was a tit-for-tat move on Motorola’s part because of the lawsuit that Microsoft filed a month before claiming Motorola infringed on several Microsoft patents in Android smartphones.

The San Francisco Appeal’s Court upheld the $14.5 million jury verdict stating that Motorola had breached its obligation to offer wireless and video patents at a reasonable cost. Instead, according to Microsoft, Motorola unfairly demanded billions of dollars for using the patents involved, with a figure of around $4 billion per annum being bandied around. This has been in the mix for since 2010 before Google purchased Motorola Mobility even. One of the consequences of this case resulted in Microsoft having to move its Xbox distribution facility out of Germany so it could avoid an import ban that came about because the Redmond company refused to pay a percentage of its sales to Motorola. While Google sold Motorola Mobility to Lenovo, it kept hold of the majority of Motorola’s patents, which means it kept the court case as well. Thanks to the ruling, Microsoft is due restitution for the relocation of that Xbox facility as well as its legal costs. Neither Microsoft nor Google has commented on the ruling.

Charles Duan, a lawyer with the Public Knowledge consumer group, had this to say about the ruling:

“This ruling is a win for consumers, competition, and innovation. It keeps prices reasonable for old products and allows new products to come to the marketplaces.”

Besides being a win for Microsoft, it could help other electronics manufacturers such as HP, Apple and Intel that have campaigned against the high royalty fees they pay to access patents allowing devices to accepts calls, download videos and access Wi-Fi. The ruling could also guide other technology companies on how much access to a payment is actually worth. Although it has to be said that the ruling won’t make pleasant reading to some companies such as Qualcomm, Ericsson, and Nokia, that require recompense for the resources they pour into researching fundamental technologies that are used throughout the mobile industry.

It appears to be a result that divides opinion, what do you make of the ruling?

Source: Mercury News

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