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Motorola wants to add Surface royalties to its Microsoft patent settlement

Published Nov 14th, 2012 4:28PM EST
Microsoft Surface Royalties

Motorola and Microsoft (MSFT) are the two latest technology companies currently embedded in a high-stakes patent litigation battle. The trial, which is taking place in a federal courtroom in Seattle, concerns licensing fees for patents considered essential to implementing wireless industry standards. The hearing will determine how much the wholly-owned Google (GOOG) subsidiary can reasonably charge Microsoft for use of its patents in the company’s Xbox gaming system, Windows software and other products. Motorola on Tuesday asked the court to consider new and future Microsoft products, such as the Surface tablet and a possible Microsoft-branded smartphone, that implement its patented technology regarding 802.11 Wi-Fi connectivity and H.264 video technologies, according to Geek Wire.

“Microsoft’s new Surface tablet will use only 802.11, instead of cellular or wired connections, to connect to the internet,” Motorola’s lawyers wrote. “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.”

Motorola originally offered Microsoft to license its technology for 2.25% of the product’s price, however the software giant contested the offer, claiming it would potentially total up to $4 billion a year. Microsoft has alleged that Motorola has not kept its commitment to offer its industry essential patents on fair, reasonable and non discriminatory terms.