Motorola Owes Microsoft $14.5 Million Over Patent Spat

Posted by at 9:36 am on July 31, 2015

Motorola LogoAn appeals court has sided with Microsoft and upheld a 2013 verdict that says Motorola has to pay Microsoft for refusing to license standard-essential patents at fair, reasonable, and non-discriminatory rates.

This particular case began in 2010, when Microsoft sued Motorola for failing to pay it patent-licensing fees for technology found in Motorola’s Android smartphones. Motorola filed its own lawsuit in return, in which it sought some $4 billion to cover royalties for technology in Microsoft’s Xbox and Windows devices.

Even though Microsoft sued Motorola, Motorola was still required to license its own patents to Microsoft at fair rates. Two separate courts determined in 2012 and later 2013 that Motorola’s $4 billion demand far exceeded what’s considered fair and reasonable.

Therefore, Motorola violated its agreement with Microsoft and Microsoft was thus awarded $14.5 million in damages for breach of contract. This week’s decision, reached by the U.S. Court of Appeals for the 9th Circuit, verifies that Motorola must pay the damages.

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