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Motorola Mobility to pay $14.5m in damages to Microsoft

The technology giant wins second patent trial.

A federal jury in Seattle has ordered Google’s Motorola Mobility to pay $14.5m in damages to Microsoft Corporation for demanding royalties over and above reasonable terms for standard essential patents.

Microsoft claimed $29m in damages from Motorola Mobility for demanding royalties of up to $4bn a year for patented technology used in the Xbox consoles and Windows. It contended that a royalty of 2.25 per cent of the price of the products was much higher than standard licenses.

This is the second suit that Microsoft has won against Motorola. Earlier in April, a federal judge in Seattle passed the ruling that Microsoft is liable to pay only $1.8m a year as against a few billions demanded by Motorola.

David Howard, deputy general counsel of Microsoft, said: “This is a landmark win for all who want products that are affordable and work well together. The jury’s verdict is the latest in a growing list of decisions by regulators and courts telling Google to stop abusing patents.”

Motorola Mobility, however, said it will appeal the decision in higher court.

William Moss, a spokesman of Motorola Mobility, said: “We’re disappointed in this outcome, but look forward to an appeal of the new legal issues raised in this case.”

The jury’s latest decision is expected to have broad implications on patent law. The US Court of Appeals for the Federal Circuit is scheduled to hear arguments on 11 September 2013 on whether there should be different rules for standard essential patents, reported Bloomberg.

Microsoft first filed a lawsuit against Motorola Mobility in 2010 with the US International Trade Commission.