Microsoft Ready To Pay Upto $502,000 For License Of H.264 Patents Owned By Motorola

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In post-trial filings that was made public after the final arguments between Microsoft and Motorola in the Western District of Washington federal court, the license amount Microsoft is willing to pay Motorola got revealed. Both Microsoft and Motorola argued on court regarding how much Microsoft must pay Motorola for use of two of its standard, essential patents used in its products.

Microsoft argued that it should pay no more than $502,000 per year for Motorola’s H.264 video compression patent, and no more than $736,000 per year for Motorola’s 802.11 wi-fi technology.

Motorola on the other hand is arguing that Microsoft should pay 2.25 percent of the end product pricing which will lead to $100-  $125 million per year as license fees.

Source: Reuters

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Pradeep, a Computer Science & Engineering graduate.

  • Martyn Metalous

    If every patent owner required Microsoft to pay that much, no one would be able to afford a computer, ridiculous to the extreme.

  • Martyn Metalous

    If every patent owner required Microsoft to pay that much, no one would be able to afford a computer, ridiculous to the extreme.

    • CX1

      Especially since they charge other companies less.

    • J A

      Well, again if Microsoft required everyone to pay such amounts for patents I don’t think anyone will have a product. Google is already planning to stop using some Microsoft patents, essentially making its services unavailable to PC users, which make up the majority of computer users globally.

    • J A

      Well, again if Microsoft required everyone to pay such amounts for patents I don’t think anyone will have a product. Google is already planning to stop using some Microsoft patents, essentially making its services unavailable to PC users, which make up the majority of computer users globally.

    • Zicoz

      Hey if that was to be the going price I would buy one hell of a lot of Microsoft Stocks, because they would be making sooooo much Money off of their portefolio.

    • Pat

      What is the percentage that Microsoft demands for every Android phone?

      • TheOne2125

        two totally different issues, MS is not using FRAND patents.Moto is and on top of that what they sued MS for is only a small part of the whole patent since it is a group that developed H.264. If moto gets its way that whole group could fall apart, which really I think that is Googles goal.

      • grs_dev

        Not sure how this relates.

        Microsoft has gotten as much as $10-$15 per Android device allegedly. Considering the average smartphone costs about $500 retail, that translates into ~2-3%.

        Microsoft’s patent portfolio as it pertains to Android was not asserted in a court of law. The court system did not dictate how much each OEM should pay. It is a price they suggested and the OEMs agreed to pay. After evaluating the portfolio most OEMs appear to agree with Microsoft. The cost of fighting something that could go either way in court will cost way more upfront then the cost of paying Microsoft quarterly or annual licensing fees.

  • wp77

    This patent stuff is getting ridiculous

    • grs_dev

      Do you think the deed to your house (if you own a property) is ridiculous? Do you think the title to your car (if you own one) is ridiculous?

      • http://www.facebook.com/people/Gavin-Tom/100001144097567 Gavin Tom

        he is obviously talking about the whole system in the US. and I agree it is a bit stupid. And almost every patent attorney can tell you the system needs a huge overhaul.

  • Zicoz

    Google/Motorola are just some silly little children.

  • GG002

    Irrespectively of how ridiculous this patent feud has gotten, I still applaud Microsoft for acting mature and agreeing on fair terms of usage. My money is worth it, and Microsoft maintains my respect by not crying like a little baby like Google and Apple always do before they’re forced to cough up the money.

    • grs_dev

      As a matter of fact Google and Apple are partnering up together as we speak from what the press has published to buy up Kodak’s IP portfolio.
      It’s interesting where some companies choose to place their bets. In 20 years when we look back and talk about how good the picture quality used to be on the iPhone 7 and iPhone 8 before they turned into iCameras we’ll all understand why those 2 companies are no longer in the PC and Mobile space.

  • donzebe

    Hope everyone make Google to pay same for use of patenst. Google started the hate Microsoft game. Apple and Microsoft has been working together for years until Google came in and is trying to disrupt the whole community.