Motorola Wants 2.25% of Microsoft's Surface Revenue
An anonymous reader writes "On the opening day of a patent trial between Microsoft and Google-owned Motorola Mobility, Motorola filed a brief (PDF) arguing that the WiFi tech central to the case is also critical to Microsoft's new Surface tablet. Motorola says royalties totaling 2.25% of all Surface revenues is a good starting point. They wrote, 'Microsoft's new Surface tablet will use only 802.11, instead of cellular or wired connections, to connect to the internet. Without 802.11 capability, the Surface tablet would be unable to compete in the market, because consumers can readily select tablet devices other than the Surface that have 802.11 capability.' Microsoft, of course, says this figure is outrageous, given 'Motorola's promise to standards bodies to offer access to the "standard essential" patents on fair and reasonable terms.'"
Why does Google get so low that they need to have proxy patent wars with Microsoft? Why can't they leave MS alone or at least sue them themselves?
unless someone shows good sales numbers for the surface
It's alright.
If anyone is on Google's side in this, you're a bloody hypocrite.
"This is different, blah blah" yeah shut up.
Microsoft, of course, says this figure is outrageous, given 'Motorola's promise to standards bodies to offer access to the "standard essential" patents on fair and reasonable terms.'"
They have - they offered access to the patents for 2.25% - all they have to prove to the court is that this is their standard opening offer to show that it is non-discriminatory and fair.
If Microsoft want to play, they should offer back some of their FRAND patents to get the rate lowered. That's how the system is meant to work. Oh, but wait, Microsoft is fairly new to this type of hardware so probably hasn't got a lot to offer in this category.
They should just give Motorola the $60 and have done with it.
Maybe now that they have their own warchest, Google's gambit is to flood the system with as many of these kinds of patent lawsuits as possible, hoping to spark some change in Congress?
It sounds like Motorola has patented using Wi-Fi on tablets.
Are we really handing patents out for this?
What if the tablet has a video connector, or a USB port. Who patented that?
Can I be the guy who patented having a power connection on electronic devices? I'll sit back and let everyone else do the work for a change.
Even more ammunition for the ITC and EU case against Motorola/Google for FRAND abuse.
If (IF!) found guilty by TWO governmental entities on TWO continents : would those GooFans please stop defending/cheerleeding their "Do-Not-Evil"-BS-company? thx. Google is no less evil than every other public tech company. I'm so tired by the notion, in particular on /., that Google is the saviour of all geeks and people in general.
PS : Remember : no other company mentioned. Don't play the blame game.
It is near enough the standard default request in case there are no patent exchange.
Well, Microsoft were claimed to be receiving $15 per Android device. Ar $600 for a device, 2.5% would be $15.
So what's the problem? Microsoft made claims that Android infringes just 6 dodgy patents. 802.11 is a core patent.
http://www.groklaw.net/pdf2/MSvB&Nanswer.pdf
Patents such as : "Loading Status in a Hypermedia Browser Having a Limited Available Display Area."
Or "“Selection Handles in Editing Electronic Documents.”,
I don't see the problem with this, they dish it out but they don't take it? Their sales of Surface devices will be far less than Android devices, so they'll pay a lot less.
how is some essential shit like wifi so burdened with patents? god damn.
Microsoft has devolved into a corporate raider (Nokia) and patent troll. (HTC, et al). A little of their own medicine is good for them.
* Carthago Delenda Est *
I want microsoft to buy me a pony.
That's not going to happen either.
Motorola Wants 2.25% of Microsoft's Surface Revenue
So give them a couple hundred bucks and be done with it...
-S
--- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
Anyone who supports this FRAND patent abuse because its Microsoft and, you know - fuck Microsoft, they deserve it, is being horribly shortsighted and a hypocrite. This is gross abuse of FRAND agreements and sets a dangerous president and, just because its Google vs Microsoft doesn't make it ok.
Abuse of FRAND patents is abuse of FRAND patents regardless of who does it and to whom it is done.
Of course it all hangs on the definiton of "fair and reasonable", which is not exactly something easy to do objectively. If I were to require such licences, I'd say zero would sound very reasonable :) If I would to provide such licences, I'd go for as a high price I could get out of you. They will fight this out and come to terms, one way or the other, and both will say the resulting sum is neither fair nor reasonable :) Well, life is unfair, live with it.
I am putting myself to the fullest possible use, which is all I can think that any conscious entity can ever hope to do.
There's something only Microsoft can patent on their Surface. It's the chair throwing application. Works like a charm. This patent can be used to attack both their competitors, if they (Microsoft) lose on the legal side.
Well sucks and all, but I bet a lot of the protocols for Wifi and its implementation are patented. A lot of these standards should have been pooled at deep discount rates but weren't. A lot of them are derivative and should have been disallowed and weren't.
But I don't see the problem as Motorola (aka Google) are simply seeking the same fee Microsoft supposedly gets for a bunch of garbage patents from Android devices. I recall Microsoft attacking TomTom over Fat32 filenames just as it was raising more cash from the stock market, and TomTom being forced to settle to avoid litigation while it was raising the capital. So I find it difficult to have any sympathy for Microsoft. No that's too mild, I think Microsoft and everyone who works for them are scum who fully deserve all the ill will they receive.
Karma dude, and Microsoft has a lot of negative karma to balance out.
Oh and I mistyped 2.5% in to my calc, the fee would be $13.5 at 2.25% a little less for the $599 Surface, than Microsoft is supposedly getting for Android devices.
How Surface doing? 'Modest'?
Indeed, it really IS 2.25% for everyone.
Payment in kind is also acceptable.
But it is 2.25% to everyone.
So it is Non Discriminatory.
I've been called a Google fanboy many times, but I don't support Google here.
Yes, Microsoft are charging a $5 tax per Android device (unethical).
Yes, Apple think they deserve $1bn+ for "bounce back" (unethical. laughable if it wasn't so disgusting)
So Google join the games too., and people support Google playing similar games because?..
There is one loser in all of this, and it isn't Microsoft, Google, or the lawyers (cui bono - dear lawyers, cui bono). No, it's YOU, because you pay an extra price for that product because someone discovered something and has Carte Blanche to generate an obscene amount of money for an equally obscene amount of time, which bears no relation to the cost of the R&D to "discover" such a discovery.
I would respect Google more if their actions were principally in the interest of society. Do no evil? My ass.
Oh, obligatory middle finger salute to Microsoft and Apple for being the leaders of the tech pack in frivolous IP claims. Also feel free to tell me how "bounce back" is worth $1bn+ and how this corruption and perversion benefits society.
Payback's a bitch isn't it?
M$ extorts money from android vendors, because of bullshit patents.
Now the big daddy comes back the M$ wanting a cut of their tables.
Since the Surface will very soon be going the way of the Zune, 2.25% of nothing is nothing. No news here, nothing to see. Move Along!
These are legit patents. These are not bullshit Apple patents, like the shape of an icon, or something equally trivial.
If MS is going to use Motorola patents, why shouldn't MS pay.
most people want to play with the device before they commit their hard-earned money on it
Presumably they can do that by visiting the nearest Microsoft retail store or by finding a real life friend or relative who has visited a Microsoft store.
So that's like, what... 30 bucks or there abouts?
MS don't want google to know how many surface tablets they are(n't) shipping
I thought it would be good for the Windows RT platform if prospective developers of applications for Windows RT had an idea of how many potential customers had devices that can run applications for Windows RT. How else does Microsoft plan to draw developers away from iPad, Kindle, and Nexus 7/10?
They keep leaving the "t" out.
Some drink at the fountain of knowledge. Others just gargle.
They are offering their WiFi patents in a FRAND compliant manner at 2.25% to ALL licensees.
If more than 44 different patent holders demand their 2.25 percent of a particular product, then what is left for the device's manufacturer?
Android isn't a company.
From Wikipedia's article about Android:
So Android is a company. Both it and Motorola Mobility are subsidiaries of Google Inc.
Google can't defend anything, because they weren't [...] the target of any legal actions with regard to [Android] IP.
You mean other than an unsuccessful lawsuit from ORACLE (One Rich Anus Called Larry Ellison)?
They keep leaving the "t" out.
It's a silent "t" for the silent partner El Goog.
This is just another patent troll trying to get money. The whole patent system needs a reboot starting with any patent that pertains to basic principles, shapes, colors, buttons, and the likes. Better yet why not just throw all of the current patents out the window, and let all the patent trolls kill them selves in the scramble to grab as many as possible.
if you say you're going to keep turning the other cheek
[citation needed]
M$ has retail stores? Not around here.
And for some reason, feature films released in the fourth quarter of each year are far more likely to be shown in theaters in "select cities" than worldwide.
...34 bucks?
Microsoft may have actually come up with a decent product that will challenge market share?
Two of my imaginary friends reproduced once
Apple will license its patent but not look-and-feel. I don't have a problem with that. It's not that hard to make a device that looks and feels different - if Microsoft can do it despite its own bureaucracy, then so can Google.
Federal Trade Commission staff have already formally recommended that Googorola be sued for anti-trust violations over its FRAND patent licensing practices. This was in the news a couple weeks ago, but of course you'll never see it on Slashdot (alias "Google's buddy"). The agency really needs to get on with it.
Have you been paying attention? Asking for a percentage of retail price is the normal, regular, standard way of doing things. Everyone does it--Motorola, Qualcomm, Samsung, etc.
The only reason why Apple/Microsoft are complaining is that normally the licensee agrees to cross-license some of their own patents instead of paying cash. Apple/Microsoft either don't have patents that others want or else don't want to cross-license them.
Doesn't Motorola/Google already get royalties from the wifi chip makers?
Do they want 2.25% of the chip; plus 2.25% of the circuit board; plus 2.25% of the device; plus 2.25% of the system; plus 2.25% of ...
Nothing, which is precisely why they usually cross-license instead.
A manufacturer can't cross-license unless it itself owns patents that the other patent holder wants to practice. A startup often won't have a lot of patents to bring to the table, nor will a nonpracticing entity (NPE) be willing to cross-license.
It's not a patent war, and Microsoft already knew what it was getting into. The Motorola patent was disclosed as part of proposing some open standards. When Motorola created those standards they promised to license them on a "fair and reasonable" basis. Everyone else who implemented the standard negotiated an agreement with Motorola.
Until Microsoft came along. Rather than negotiate a reasonable fee, Microsoft found a friendly judge in their home state of Washington and asked him to set a rate. Microsoft hasn't been contributing to the open standards, so they're trying to get the open standards devalued to increase the value of their own patents. There's a good piece on the subject that Groklaw posted back in September after a German judge told Microsoft to play nice and Microsoft responded by taking their marbles and running back to Seattle to find a friendlier judge.
===== Murphy's Law is recursive. =====
defining "fair and reasonable"?
I suspect that, much in the way the Samsung/Apple case started out, the 2.5% is something intended to start negotiations with. They likely expect Microsof to come back with something just as unreasonably low. Reality is expected to come out somewhere in between.