On Wednesday Microsoft Corp announced that a Federal Jury gave a verdict that was favorable to the company. According to the verdict Motorola Mobility of Google Inc. (GOOG) wasn’t fair with Microsoft products about licensing Standard Essential Patents. The jury believed that Microsoft was justified in accusing Google Inc (NASDAQ:GOOG)’s Motorola of not honoring its standard- setting agreements with Microsoft regarding licensing certain patents. Microsoft was awarded damages worth $14.5 million.
Microsoft considered this victory as a huge success for those who want affordable products that work well. A spokesperson of Motorola Mobility announced that Motorola will raise its voice regarding the legal issue that was raised in the case with Microsoft.
According to Microsoft the initial demand by Motorola Mobility was very expensive and went against the agreement that set the industry standards to charge reasonably and in non-discriminatory terms for technology items; agreement is commonly known as “RAND”.
Motorola also threatened Microsoft Corporation (NASDAQ:MSFT) that it would get a halting sales court order against Microsoft if the company didn’t pay 2.25% royalties on the sale price of Operating System powered by Windows and Xbox Video-gaming System. Microsoft argued that the 2.25% of royalty demand would mean over $4 billion per year; this figure was disputed by Motorola Mobility. Later Motorola Mobility claimed that a letter asking to hold negotiations regarding the licensing agreement was sent to Microsoft, which Microsoft did not accept. James Robert, a U.S. District Judge said that Motorola Mobility must make offers in good faith; the judge believes that it doesn’t matter what the initial offer is as long as it ends fairly.
An agreement was made between Google and Microsoft that all the handset makers that use Google’s Android operating system for free must pay a license fee to Microsoft. Big names, such as HTC, Samsung and LG agreed to this condition and pay royalty to Microsoft on handsets powered by Android. Motorola however was bought last year by Google for $12.5 billion; this purchase was made mostly because of Motorola’s patents.
The hearing to decide whether different rules should exist for Standard Essential Patent is scheduled on the 11th of September in ‘The U.S. Court of Appeals for the Federal Circuit. The hearing will also decide when court offers for blocking patent technology usage can be obtained by the companies.
In the last session, shares of Google Inc (NASDAQ:GOOG) went up by 1.31% and ended at $871.63. Shares of Microsoft Corporation (NASDAQ:MSFT) went down by -2.15% ($31.19).