A federal judge has ruled this Thursday that Motorola is only entitled to $1.8 million in royalty taxes and not the $4 billion the company was demanding. Both companies are locked in a legal battle over Microsoft’s use of several of Motorola’s patents related to the H.264 video standard and the 802.11 wireless standard.
In the 207 page ruling of U.S. District Judge James Robart je determined what the specific RAND (reasonable and non-discriminatory) rate should be. This was achieved by hearing the testimonies of 18 witnesses last November.
The courts final decision is that 3.471 cents per unit was the appropriate royalty to be paid for each Xbox product. All other related devices will have to pay 0.8 cents per unit.
Microsoft Deputy General Counsel David Howard said that “This decision is good for consumers because it ensures patented technology committed to standards remains affordable for everyone.”
This particular case started in 2010 when Microsoft sued Motorola for charging excessive royalties for the use on some of its patents. Motorola responded with its own suit claiming that Microsoft infringes on 16 of its patents on products such as Microsoft PC’s, Windows server operating system, Windows Mobile and Xbox products.