News Update

Microsoft unsettlement with Motorola

Microsoft has rejected an offer made by Motorola manufacturers, with an ongoing dispute in this case that his been ongoing since April when a judge ruled that Microsoft did indeed broke terms upon four out of the five Motorola Mobility patents it was accused of violating. Since the Xbox 360 is manufactured in China, blocking imports would effectively kill U.S. sales of the console. In early May similarly found that Microsoft had violated Motorola’s patents, banning sales of Xbox 360, Windows 7, Internet Explorer, and Windows Media Player in Germany. Microsoft immediately planned to appeal. As in wasn’t bad enough, since a judge recommended against continued  sales of Xbox 360 in the United States, its up to the International Trade Commission ( ITC) to influence the final call, but it will be up to the President Of the United States. That brings us to this week, when Motorola offered to pay Microsoft 33 cents for each Android phone sold. In exchange, Microsoft would pay Motorola 2.25% of each Xbox sold (we’ve contacted Microsoft to clarify whether that’s 2.25% of the retail price or of Microsoft’s profit per console) and 50 cents for each copy of Windows. Microsoft rejected those terms, arguing that it’s unfair of Motorola to request royalties “far in excess of market rates.” In the past, Microsoft has noted that it believes Motorola should “make its standard essential patents available on fair and reasonable terms.” For now, the ITC has recommended an import ban on all Android devices using ActiveSync and all Xbox 360 consoles until the patent issues are settled. If settlements continue to be rejected, the ITC will declare its verdict to the White House, at which point the office of the President will have 60 days to finalize the decision.