IT Chimes Blog

Motorola charges Microsoft $4billion as royalty payments

May 1, 2012

Motorola Holdings Inc has demanded $4 billion from Microsoft Corp for patent loyalties related to technology critical to the performance of Xbox video-gaming system.

“Motorola’s demand was so over-reaching that no rational company could ever have accepted it or even viewed it as a legitimate offer,” Microsoft said in a March 30 filing.

Both companies are seeking a federal judge in Seattle to rule if Illinois-based Motorola took a U-turn on its assurance to license necessary patents on wireless networking and video coding on just and unbiased terms.

The dispute between the two companies is not just limited to this case. In the broader aspect Motorola is looking to obstruct sales of the Xbox while Microsoft in turn wants a ban on US imports of Motorola phones running on Google’s Android OS.


Microsoft claims Motorola is seeking $4 billion in compensation a year for licensing 50 patents linked to video compression. Redmond, Washington-based Microsoft said it pays $6.5 million annually to 29 companies with 2,339 patents covering similar industry standards.


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