After demanding $4 billion for the Xbox, Motorola now also wants 2.25% of Microsoft Surface Revenue


The trial between Microsoft and Google/Motorola has kicked off today, and as an opening gambit Motorola has filed a brief demanding 2.25% of Microsoft’s Surface revenue.

In a brief filed in advance of the trial, Motorola contends that 802.11 WiFi technologies are critical to Surface, because it doesn’t have an Ethernet port or cellular broadband, saying

“Microsoft’s new Surface tablet will use only 802.11, instead of cellular or wired connections, to connect to the internet. Without 802.11 capability, the Surface tablet would be unable to compete in the market, because consumers can readily select tablet devices other than the Surface that have 802.11 capability.”

Getting their claim in early, Motorola’s lawyers also noted that Microsoft “apparently is working on its own smartphone, which undoubtedly will have Wi-Fi capabilities,” citing a Wall Street Journal story as evidence.

On the stand Windows executive Jon DeVaan acknowledged that Surface incorporates H.264 video technologies but argues that Motorola’s original offer to license patents to Microsoft for 2.25 percent of the end product price was outrageous — potentially totalling $4 billion a year — considering Motorola’s promise to standards bodies to offer access to the “standard essential” patents on fair and reasonable terms.

Motorola contends that Microsoft gave up its right to a reasonable royalty by filing the lawsuit in response to Motorola’s initial royalty demand.

Read more at Geekwire here.