updated 06:21 pm EST, Thu November 8, 2012
Number declared in pre-trial briefs, magnitude lower than demanded
On Wednesday evening, Microsoft and Motorola Mobility filed trial briefs before the trial over fair, reasonable, and nondiscriminatory (FRAND) negotiations. Motorola believes that it's 2.25 percent demand as the "logical starting point." Microsoft believes that the rates set by the MPEG LA patent pool for Wi-Fi related patents are a better indicator of what a reasonable demand for Motorola's standards-essential patents should be.
The filings are the first ones in the trial process to specifically address financial awards. Microsoft believes that the FRAND rate in 2012 for Motorola's H.264 standards-essential patents is $474,000. The 802.11-related patents for 2012 are said to be $736,231 according to the royalty calculation method of the Via licensing pool. Adding the numbers up, Microsoft believes that it owes Motorola $1.2 million.
Microsoft also believes that Google, Motorola's parent company, committed to license two of the H.264 video encoding patents to Microsoft as a virtue of the search engine giant's participation in the MPEG LA AVC patent pool. Despite the set-aside claim, Microsoft retains its position that it wants to take a FRAND license on H.264 and WI-Fi patents on court-determined terms, and wants a court-enforceable solution to end the litigation.
The dispute between the giants have put Google and Motorola under the spotlight. The pair are allegedly under investigation by the US Federal Trade Commission for violations of standards-essential patent licensing.