Link to full articleAmong the issues before the judge at Monday's hearing was Microsoft's contention that Motorola breached a contract by demanding unreasonable licensing fees for use of some of its industry-standard patents. The judge was also asked to rule on Motorola's claim that Microsoft gave up its rights to license those patents at reasonable rates when it sued, rather than negotiated with, Motorola.
The case here could help set licensing rates that Microsoft would pay Motorola in order to keep selling Xbox and Windows products worldwide. Motorola had asked courts in the U.S. and Germany to issue injunctions against the sales of some of those products.
The dispute heard Monday stems from a letter Motorola sent to Microsoft in 2010 asking for 2.25 percent of the sale price of each device that uses Xbox and Windows, since the technologies contain standards-essential patents belonging to Motorola.
Microsoft considered that rate outrageous, saying it would amount to $4 billion annually.
The company said after Monday's hearing that it's had a long history of licensing its patents with more than 50 companies but that Microsoft has refused to negotiate, opting instead for "an aggressive litigation strategy."
Steve Ballmer (CEO of Microsoft) has for years been using the unsubstantiated claims that Linux violates MS patents (which patents in what programs he won't say) as propaganda against Linux. Recently MS has "strong armed" various Android using companies into patent license agreements.
The Linux community has repeatedly ask which patents in what programs so they could remove the patent violating parts if they in deed exist and the patents are valid. (Linus Torvalds recently found prior art on the notorious FAT patent which can be used to invalidate it). MS has refused with the stated reason that they might be challenged and invalidated (if they can be then they are not actually "real" patents and can't be violated).
So how is it poetic justice for Motorola to be due patent licences on Windows and XBox? Motorola is now owned by Google the creators of Android and a big user of Linux (Android has a Linux base).
MS recently settled with Barnes and Noble over their use of Android (by buying into the Nook E-Book/tablet for about $300 million). MS started it and then ended up paying to B&N.