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NewsPoster Jun 19, 2013 06:14 PM
Motorola refuses royalty, retains Microsoft $100 million FRAND deposit
Following <a href="" rel='nofollow'>April's court ruling</a> that Microsoft need only pay several millions of dollars, rather than the billions that Motorola Mobility was seeking, Microsoft offered Motorola's counsel a $6.8 million dollar payment for all outstanding licensing debts owed for H.264 standards-essential patents used in Windows 8 and the Xbox 360. Motorola has refused this offer, and is retaining a bond paid by Microsoft -- despite judicial orders not requiring a payment even close to the $100 million bond payment.<br />
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A letter from Microsoft filed with the court shows that a June 5 correspondence between Microsoft and Google suggested the offering paying the licensing debt in full, in exchange for Motorola releasing the $100 million bond paid in 2012. Additionally, Microsoft offered future royalty payments that arise based on future rate-setting rulings. The court filing notes that Motorola did not accept the terms of the deal and states that Motorola will fight any effort to release the bond.<br />
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Patent analyst <a href="" rel='nofollow'>Florian Mueller</a> believes that "from a purely commercial point of view, it would actually make far more sense for Google to accept Microsoft's payments. It's better to physically receive money than to have merely a bond, especially when the debtor's ability to pay is beyond reasonable doubt anyway."<br />
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Motorola's H.264 (and the previously included Wi-Fi) patents are considered standards-essential, and licensing for these patents must be attempted on a fair, reasonable and non-discriminatory (FRAND) basis by law. Motorola was on the <a href="" rel='nofollow'>losing end of statements</a> given to the ITC by industry magnates in support of both Apple and Microsoft's use of Motorola's standards-essential patents. As a result of the 2.25 percent royalty request (considered wildly excessive for an SEP) and other issues, both Motorola and parent company Google were under investigation by the FTC for <a href=" .microsoft/" rel='nofollow'>FRAND patent abuse</a>, with a <a href=" exports/" rel='nofollow'>light reprimand</a> issued to parent company Google.<br />
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