Back in 2010, Microsoft sued Motorola that they are not ready to license wireless and video FRAND patents used in Xbox and Windows at a reasonable cost. In 2012, U.S. District ruled that the appropriate royalty rate Motorola can demand was $1.8 million, not $4 billion a year which Motorola demanded. Court also found that Motorola breached the contract related to standards patent licensing. Google appealed the verdict and yesterday U.S. appeals court ruled that the low licensing rate Microsoft pays to their patents had been properly set.
The 9th U.S. Circuit Court of Appeals in San Francisco said a lower court judge properly determined the patents’ value even though the royalty rate was only a fraction of what Motorola had asked for. Google sold the Motorola handset business to Lenovo last year but kept its patents.
The court also upheld $14.5 million awarded to Microsoft for Motorola’s breach of contract to license its patents fairly.