The Judge announced that Microsoft only needs to pay 3.471 cents for each product sold that use a wireless patent (in the Xbox) and even less for products that use advanced video coding patents (in Windows and Xbox) - a mere 0.555 cents. Just make Xbox360 as an example: in Amazon, the 4 GB version of Xbox360 are selling at the price $179.99. That means under this court decision, Microsoft only need to pay 0.0223% of the selling price of Xbox360, which is widely below the 2.25 percent per product originally requested by Motorola. This figure can clearly show how badly Motorola lose in this lawsuit:
Back in Oct. 2010, Motorola offered to license the 802.11 and H.264 patents to Microsoft at a rate of 2.25 percent per product sold. Microsoft, however, argued that the rate was unreasonable and filed suit, and the two have been at loggerheads ever since. After 3 years of litigation, Motorola really got close to nothing in return. This simply shows how much risk is there in patent litigation for patent holder, if the patent user feels the licence is too pricey and rather prefers litigation.
Wow, very unfortunate for Motorola. Microsoft is making more and more money, especially from the Android payments.
ReplyDeleteWow that graph really depicts how much Motorola has lost from Microsoft. It's very interesting to see how actually going into patent litigation has actually backfired on Motorola.
ReplyDeleteThis goes to show that greed gets you nowhere. Motorola's ridiculous request of 4 Billion has not only gotten them nothing but it is very embarrassing now that the courts ruled 1.7 Million.
ReplyDeleteThis was an excellent example of the need to accurately predict the returns that one will get from licensing or damages deals regarding patents. I'm sure that the risk of an extremely low return on its legal investment was considered by Google when it attempted to utilize Motorola's patents to sue Microsoft, but this low amount was just a drop in the water compared to the billions that Google had expected.
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