Microsoft Turns Down Settlement With Motorola

Microsoft Turns Down Settlement With Motorola

image

Microsoft draws a line in the sand, and the future of Xbox 360 console sales lies in the balance.

For over a year and a half, gamers and legal scholars alike have watched the patent suit between Microsoft and Google-owned Motorola go from a straightforward dispute to a downright nasty courtroom showdown. Now, the amount of funds at stake "could finance a small country" and the International Trade Commission is even considering putting a stop to Chinese-made Xbox 360 imports which, at best, would drastically drive up their production costs. With just over a month left before the ITC decision is finalized, Motorola has offered an olive branch in the form of a settlement that includes a 2.25% royalty on future Xbox 360 sales. If Microsoft were to accept, the entire prolonged affair would finally be at an end. Instead, Microsoft has publicly rejected the offer setting the stage for a final ITC ruling in August that may not go in their favor.

"While we welcome any good faith settlement effort," said Microsoft deputy general counsel Horacio Gutierrez, "it's hard to apply that label to a demand that Microsoft pay royalties to Google far in excess of market rates, that refuses to license all the Microsoft patents infringed by Motorola, and that is promptly leaked to the press."

Motorola is also under fire for its use of Microsoft's ActiveSync technology on some Android phones. Microsoft has already filed and settled patent disputes with other companies for their unlicensed use of ActiveSync, but since the courts have already ruled that Microsoft infringed four Motorola patents, the tech company no longer has a strong position to negotiate a settlement. Motorola offered to pay 33 cents per ActiveSync-using phone sold, compared to the six to seven dollars Microsoft would need to pay per Xbox 360 under the 2.25% royalty fee. And that's actually an improvement from the 7% fee that Judge David Shaw argued Microsoft should be paying back in April.

The fact that Microsoft isn't backing down after all that's happened suggests that they either believe they can get a better deal, or that they believe the ITC will rule in their favor. Unless the two companies come to a new settlement, the ITC will make its final ruling in August.

Permalink

4 billion dollars in nothing to snort at

Evil Smurf:
4 billion dollars in nothing to snort at

But the fact that they turned down a 2.25% royalty seems to indicate that they must have been snorting something.

DVS BSTrD:

Evil Smurf:
4 billion dollars in nothing to snort at

But the fact that they turned down a 2.25% royalty seems to indicate that they must have been snorting something.

Especially since it was only on all future Xbox 360s sold, and the console's life seems to be coming to an end anyhow. Microsoft must be pretty damn certain they can win.

Why do I have a feeling that this ends well for no one?

Captcha: double-cross.

Indeed.

mindlesspuppet:

Especially since it was only on all future Xbox 360s sold, and the console's life seems to be coming to an end anyhow. Microsoft must be pretty damn certain they can win.

This. I mean... isn't the 720 out this Christmas? how many 360's are there left to sell? or am i missing something?

I hope that they won't settle, all too few of these cases gets resolved behind closed doors where no-one can hear all the juice.
But they really should have settled, how many more 360s are they gonna sell?

I want to Microsoft lose simply to see what would happen. Would the 360 no longer be allowed to be sold in the world, or US only?

I don't get it, did Motorola pull a bait and switch by letting them build tech on the patent then suddenly deciding they want money for it, or did Microsoft flat out steal it just because they thought they could get away with it?

Zaik:
I don't get it, did Motorola pull a bait and switch by letting them build tech on the patent then suddenly deciding they want money for it, or did Microsoft flat out steal it just because they thought they could get away with it?

If Microsoft is guilty, it would seem Motorola simply wasn't aware of the infringement until recently. But with courts being what they are, it could take a long time to find out.

Well this could end ugly... at least on the bright side it might push them into making a new console

DVS BSTrD:

Evil Smurf:
4 billion dollars in nothing to snort at

But the fact that they turned down a 2.25% royalty seems to indicate that they must have been snorting something.

It whould seem that cutting back on company funds for the "good stuff" to be used to settle this case is apparently unacceptable.

LordFish:

mindlesspuppet:

Especially since it was only on all future Xbox 360s sold, and the console's life seems to be coming to an end anyhow. Microsoft must be pretty damn certain they can win.

This. I mean... isn't the 720 out this Christmas? how many 360's are there left to sell? or am i missing something?

Perhaps that if the 720 would be out this year we would be aware of its existence, proper name and release date by now. Microsoft wont launch a console with only 6 months hype. Given E3 just passed it doesnt seem even remotely feasible it would be launched this year.

__________________________________

I hate to say it but I am firmly behind MS on this one. For one, there isnt a pit of hell deep enough for google to burn in as far as I am personally concerned, but the fact is that motorola waited an awfully long time before speaking up about this and though I am loathed to reward MS for its continued string of theft, motorola technically stole from MS so really if it wasnt for google being behind motorola I would say the two should make out and make up because really technology is superior when it is shared instead of patent infringed and copywrite trolled IMAHO

viranimus:
Microsoft wont launch a console with only 6 months hype. Given E3 just passed it doesnt seem even remotely feasible it would be launched this year.

It's still a possibility. People interested would have plenty of time to to catch on, and people desperate for a last minute Xmass gift won't really care if it's a 360 or 720.
Then there's the matter of quality over quantity of advertizing: so long as there's a few good launch titles, you won't need much time to stir up some serious hype.

Microsoft might be stalling for time here.

Zaik:
I don't get it, did Motorola pull a bait and switch by letting them build tech on the patent then suddenly deciding they want money for it, or did Microsoft flat out steal it just because they thought they could get away with it?

It could easily go either way, but it's good to remember that these grandly touted "tech patent infringements" easily involve no more than a few lines of code, and are generally charged when it conveniently suits the company, not when they discover them.

Not to mention this whole hoopla concerns the decryption of a file format that is extremely widespread.

Just forget any notion about one actually stealing the other's tech. It's two companies fighting it out with their lawyer armies.

Kargathia:

Zaik:
I don't get it, did Motorola pull a bait and switch by letting them build tech on the patent then suddenly deciding they want money for it, or did Microsoft flat out steal it just because they thought they could get away with it?

It could easily go either way, but it's good to remember that these grandly touted "tech patent infringements" easily involve no more than a few lines of code, and are generally charged when it conveniently suits the company, not when they discover them.

Not to mention this whole hoopla concerns the decryption of a file format that is extremely widespread.

Just forget any notion about one actually stealing the other's tech. It's two companies fighting it out with their lawyer armies.

The problem is that it doesn't even require that. Tech patents are fucking stupid. The whole industry is wrapped up in them and it's finally starting to show.

Frankly, from what I've learned, more often than not there isn't much of an argument with regards to these matters because companies could never make a product. There is sort of a "gentleman agreement" or fair "market rate" for this stuff because at this point with all the patents you can hardly make something without somewhere somehow "infringing" on someone's "idea." (whether or not they ever physically put it to use or not.)

The problem here is that Motorola is a fucking prick and since their purchase by google has been doing everything that your average shit company can do. As it is mentioned, they don't want to pay hardly anything to the people who's patents they are using in their smart phones but are demanding gross above market %'s for theirs.

While I'm not a Microsoft fanboy in the least, I do think that this is another douche move by Motorola.

its sad when little guys get patent trolled by super corporations.... but two big dogs going at it is worthy of popcorn.

PS. patents are fuckin dumb most of the time.

mindlesspuppet:

DVS BSTrD:

Evil Smurf:
4 billion dollars in nothing to snort at

But the fact that they turned down a 2.25% royalty seems to indicate that they must have been snorting something.

Especially since it was only on all future Xbox 360s sold, and the console's life seems to be coming to an end anyhow. Microsoft must be pretty damn certain they can win.

2.25% is huge for something like this. It's very unlikely Microsoft would have agreed to this "offer." My guess is that it was intended by Motorola to be a starting point for negotiations, but (as mindlesspupptt theorizes) Microsoft must be pretty sure that they'll prevail. Or that by the time this thing grinds through the courts that it won't matter anymore.

Well, now I seriously hope that MS loses this one.

What MS did is everything that they were fighting against.
Oh look, the new Windows OS is to expensive for me... *new tab/piratebay*... yes, yes... *download*.

Zaik:
I don't get it, did Motorola pull a bait and switch by letting them build tech on the patent then suddenly deciding they want money for it, or did Microsoft flat out steal it just because they thought they could get away with it?

Pretty much when Google took over Motorola, they changed the fee Microsoft had been paying for years and refused to pay the new price.

viranimus:

LordFish:

mindlesspuppet:

Especially since it was only on all future Xbox 360s sold, and the console's life seems to be coming to an end anyhow. Microsoft must be pretty damn certain they can win.

This. I mean... isn't the 720 out this Christmas? how many 360's are there left to sell? or am i missing something?

Perhaps that if the 720 would be out this year we would be aware of its existence, proper name and release date by now. Microsoft wont launch a console with only 6 months hype. Given E3 just passed it doesnt seem even remotely feasible it would be launched this year.

__________________________________

I hate to say it but I am firmly behind MS on this one. For one, there isnt a pit of hell deep enough for google to burn in as far as I am personally concerned, but the fact is that motorola waited an awfully long time before speaking up about this and though I am loathed to reward MS for its continued string of theft, motorola technically stole from MS so really if it wasnt for google being behind motorola I would say the two should make out and make up because really technology is superior when it is shared instead of patent infringed and copywrite trolled IMAHO

Woah, Woah, WOAH!...Woah!

Where did that come from? I must have missed some news on Google where they were shown to eat puppies and sacrifice babies during beastial orgies.

Also, is it not just as likely, given the complete lack of coverage over this case, that Motorola just plumb not know about Microsofts infringement? Better to call them out late rather then never.

Ragsnstitches:

Woah, Woah, WOAH!...Woah!

Where did that come from? I must have missed some news on Google where they were shown to eat puppies and sacrifice babies during beastial orgies.

Well this is personal perspective/opinion....

Comes from google trying to create brand recognition over the entire internet. They are another corporation where they have undeserved "cool" factor to them and have random people act as a PR department on their behalf but yet people fail to see that they are just as much an "evil empire" (despite their motto) as the likes of microsoft. Yet google itself doesnt actually do anything good for people or the internet. All their best properties were designed by other people that they have bought out (youtube) or ripped off emulations other existing services (search engine, maps, social networking, browser, ect)

So heres the score sheet, they screwed up youtube making it worse, they failed trying to copy facebook, They made a style over substance more inaccurate version of mapquest, a simply inferior web browser designed by former firefox staff, dogpile is greater than google, and google just copied the likes of yahoo and lycos to get started.

So when a company has a track history like that, what exactly am I missing that they have done to deserve having people say things like "just google it" and "google is your friend" and "google knows all". Because sorry, I dont see what google ever did that wasnt the aim of a corporation to make money off of the least amount of effort and creativity possible. And I find the brand recoginitioning incredibly problematic because its taking people who dont know about the internet and indirectly suggests that google is the answer for their internet based woes or lack of knowledge. Its a reputation that simply is not earned.

As for motorola, I get they were tardy to the party, but the simple fact is the console has been selling for years. Its simply not logical to try to ban a product at this stage of the game. There have simply been too many sold at this junction to try to put a stop to it now and really worst case scenario... it just hastens the release of the new console anyway, which Id rather the new xbox NOT be rushed lest we see a lovely new "RRoD" type issue.

My solution is to get CEOs of both companies to have knifes tied to the right hands and their left hands tied together and force them to fight tot the death. The Winner of the fight is the winner of the court case.

And if you are not mad enough to kill someone over it you are not mad enough to follow up in court.

I Swear the need for everyone to take everyone else to court is whats ruining America and making people into pussies.

Lets bring back the "Gentlemen's duel (or maybe rename it to something that don't sound as sexist as women can participate too). Got an issue with some one, don't take it to court duel to the death. You see how many people will quickly just settle out of court with both parties interest in mind.

I'd be more inclined to agree that Google may get more attention than it deserves if I hadn't recently run a search on "Burning Love" (a Yahoo exclusive webseries) on Yahoo Search and get Burning Man as the first result, and then run the same search on Google and end up with both the correct link for the search, plus a submenu under that link listing direct links to each episode.

darksakul:
My solution is to get CEOs of both companies to have knifes tied to the right hands and their left hands tied together and force them to fight tot the death. The Winner of the fight is the winner of the court case.

And if you are not mad enough to kill someone over it you are not mad enough to follow up in court.

I Swear the need for everyone to take everyone else to court is whats ruining America and making people into pussies.

Lets bring back the "Gentlemen's duel (or maybe rename it to something that don't sound as sexist as women can participate too). Got an issue with some one, don't take it to court duel to the death. You see how many people will quickly just settle out of court with both parties interest in mind.

What you're suggesting is UNACCEPTABLE

I demand that the fight be held in a Colosseum and the default dress requirement are togas!

I also want a front row seat and that the CEOs have their board of directors from each side participate and the Colosseum should have an array of weapons scattered about the arena to grab on sight

I demand that two wild ravenous dogs are released into the arena for every ten minutes that does NOT result in at least one death on each side! TEN dogs will be released if more than half the crowd is "Booing in dissatisfaction"!

Killing any of the board of directors other than the CEO count for 50 points, 100 points if it's a decapitation with the "crowd vote", getting 800 points without killing the CEO counts as a win, whoever on each side kills the opposing team's CEO before 800 points are reached wins

The remaining unkilled losers are given the "choice" to be slowly torn apart by Lions, Stoned to death by the crowd or fed to Crocodiles while attempting to swim for "freedom" (bonus event).

The crowd reserves the "right" to choose a different option as long as it results in a horrifying death...

... I currently have FAR too much spare time on my hands to have thought that up...

 

Reply to Thread

Log in or Register to Comment
Have an account? Login below:
With Facebook:Login With Facebook
or
Username:  
Password:  
  
Not registered? To sign up for an account with The Escapist:
Register With Facebook
Register With Facebook
or
Register for a free account here