Tomahawk, WI 9/06/2013 (BasicsMedia) –Microsoft Corporation (NASDAQ:MSFT) has been a lot in the news lately, what with its Nokia acquisition. A great deal is being said, assumed, presumed, opined, gossiped about and written. So, let’s pan away from the MSFT-NOK landscape for a bit and move onto another frame.

The Verdict

On Wednesday, MSFT said that a Federal Jury had passed a verdict in their favor. The jury said that Google’s Motorola Mobility did not act in good-faith about the licensing of the purportedly standard and essential patents that are utilized in MSFT products. The Jury acceded with the claim that Microsoft had put forth saying that Motorola, the Google-owned phone maker broke certain agreements with the standard-setting bodies in the licensing of some patents. MSFT has been awarded approximately $14.5M in damages.

The milestone

In its statement, Microsoft said that this ruling stands as an example in time for everyone who seeks affordable products. On the other hand, a Motorola spokesperson said that the company would further appeal on the latest legal issues that have been raised in this case. MSFT’s argument was that Motorola Mobility had acted in an unreasonable manner.

This was because the initial demand that had been exorbitant and that they had clearly breached the agreement to charge any Reasonable And Non-Discriminatory terms. These are generally termed as “RAND”, for any technology that is considered to be an industry standard.

The backlash

Not one to stay silent, Motorola threatened MSFT to get the court order to halt sales of these products if they did not pay royalties of 2.25% of the Xbox gaming system price or even that of a computer that operates on the Windows system. Post that, Motorola Mobility said that they had sent MSFT a letter of negotiation with reference to the licensing agreement and that the latter had declined the offer.

Microsoft says that the royalty demand would amount to over $4B per year and this figure was disputed by Motorola Mobility. The U.S District Court Judge James Robart averred in this trial that the offers that Motorola Mobility puts forth have to be in good faith and that the result has to be fair.

The royalty game

MSFT has sealed an agreement with GOOG to make sure that handset makers who use the latter’s Android system pay MSFT a license fee. Most of the large mobile manufacturers such as Samsung, HTC and LG have  acceded to pay MSFT the royalty on their Android handsets. The Google-acquired Motorola is one of the last big holdouts.

The hearing

The hearing is now slated for 11 September and the case will be held at The U.S. Court of Appeals for the Federal Circuit. The decision that is pending will be around whether different standard essential-patent rules should exist and about when tech companies can obtain a court order to block patented-technology use.

And the battle of the giants rages on. More like a game of tennis, where accusations will be flung back and forth and the one with the powerful backhand might just win the match-point. At the time of writing, Microsoft Corporation (NASDAQ:MSFT) shares were up 0.40% and trading at $31.35 while Google Inc (NASDAQ:GOOG) shares were up 0.26% and trading at $881.19.

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