Microsoft rejects Motorola settlement offer

Microsoft has balked at a settlement offer from Motorola, saying it wasn't made in good faith due to excessive royalties, a failure to account for other patents, and press leaks.

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Microsoft has rejected a settlement offer from Motorola in an ongoing Xbox 360 patent suit. The offer would have Motorola take 2.25% of royalties on every 360 sold. Microsoft balked at the proposal, saying the royalties would be well above market rates and that the settlement doesn't account for Motorola's own infringements.

Horacio Gutierrez, Microsoft's deputy general counsel, e-mailed a statement to Reuters (via Gamasutra). "While we welcome any good faith settlement effort," it read, "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."

Last month, a judge recommended a ban of Xbox 360s to the International Trade Commission (ITC). While Microsoft still has legal avenues available to it, it makes sense for Motorola to use its advantage as a bargaining chip. Last week, various corporations rallied behind Microsoft in opposition of the ban with public submissions to the ITC.

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  • reply
    June 21, 2012 12:00 PM

    Steve Watts posted a new article, Microsoft rejects Motorola settlement offer.

    Microsoft has balked at a settlement offer from Motorola, saying it wasn't made in good faith due to excessive royalties, a failure to account for other patents, and press leaks.

    • reply
      June 21, 2012 2:44 PM

      This just keeps getting better and better.

      And how old are these patents anyway? Don't patents (except for IP) become public domain after seven years?

      • reply
        June 21, 2012 2:48 PM

        Patents expire in 20 years :-(

      • reply
        June 22, 2012 6:52 AM

        I wonder if there should a time window when a company can go after another for infringement for product on the market. For instance shouldn't Motorola have gone after Microsoft for the issues with the Xbox 360 instead of waiting years later. They see Microsoft moving more in to mobile technology and decide to use a dormant legal weapon. That said Microsoft isn't with out guilt here. The whole patent needs some reform in any case.

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