On Wednesday Microsoft said that it won a second patent trial against Motorola, in a federal court in Seattle.
The court ruled that the licensing fee charged by Motorola for its Wi-Fi and H.264 — a video-encoding technology — violated its commitment with international standard setting agencies to offer its patents at a reasonable and non-discriminatory rate popularly known as the RAND rate.
The court awarded a total of $14 million in damages to Microsoft, which includes $11 million toward costs of relocating a warehouse in Germany after Motorola won an injunction in that country against Microsoft products like the Xbox 360 and Windows 7. Although the U.S. courts stayed that ban, Microsoft reportedly had to relocate its warehouse.
The dispute between Microsoft and Motorola in the U.S. District Court for the Western District of Washington at Seattle can be traced to 2010 when Motorola asked Microsoft to pay royalties for Motorola technology contributed to the H.264 video compression standard and 802.11 wireless networking standard. Microsoft was willing to pay a royalty, but found the 2.25 percent of the product price that Motorola had sought was too high. Motorola’s terms were designed to ensure that Microsoft would not accept and Motorola could then sue for an injunction on its products, Microsoft argued in court.
Microsoft is also fighting a legal battle with Google demanding that smart phone makers that use Google’s Android operating system should pay a license fee to Microsoft.
In a previous trial, settled earlier this year, Google’s claim that Microsoft owed it billions in patent payments was thrown out by a US judge.