Microsoft sues Motorola over Xbox royalty fees

By Mike Fischer on November 10, 2010, 9:00 AM
Microsoft is taking more legal action against its former partner Motorola. A new lawsuit filed yesterday in a Seattle federal court alleges that Motorola charges "excessive and discriminatory" amounts on royalty payments for technology used in Xbox consoles. Microsoft claims that during IEEE and ITU processing Motorola pledged to license its patents for WLAN and H.264 video technology at fair and reasonable prices. They go on to argue that royalty fees should be based on the cost of the components in question and not the overall sale price of the device being sold.

This comes one month after Microsoft accused Motorola of infringing on nine patents used in its Android-based smartphones. The main patent in question involves Microsoft's Exchange ActiveSync, an e-mail, calendar, and contact syncing technology that all of the major Android phone producers pay to use, with the exception of Motorola. The licensing fee is a major investment though -- somewhere in the hundreds of millions of dollars -- and has already been purchased by Google for the development and use of Android. This raises the issue of Microsoft forcing hardware developers to purchase their own additional licenses, and could be an attempt to slow or discourage the adoption of Android by more manufacturers. Amusing given the charges of excess and discrimination from yesterday's lawsuit.

User Comments: 15

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bam13 said:

Great, another neverending process about nothing has just begun...

Neojt said:

haha this is a Your charging me too much about a deal we made years ago .

but im also suing you because you wont pay MY overcharging


taea00 said:

Mr. Pot? This is Mr. Kettle!

They're all rediculous. They all steal from one another, they all screw each other. Haven't these big corporations ever heard that no one likes a tattle tail?

ReMonster said:

If they didn't want to pay the royalties they should not have put there IP's and hardware in their device.

Zilpha Zilpha said:

I have to agree that Microsoft is being incredibly hypocritical in this instance. They force xbox live subs in order to do just about anything (when Ps3 and Wii consoles do not) and then have the nerve to sue Motorola over doing essentially the same thing?

I guess their philosophy of "pay to play" only applies when they are on the receiving end of the money.

Cryptopsy said:

Protect your product, sign & respect contract, stop to sue companies for unclear information.

JMMD JMMD, TechSpot Chancellor, said:

Oh Microsoft, if only everything in the world could go in your favor. Welcome to the world of being screwed by a large company, enjoy your stay.

Guest said:

I feel the same about the overpriced Windows operating systems that come out every 2-5 years. Can we the customers sue MS for that?

zogo said:

Everybody sues everybody in the big business market.They are boring!!!

Why throwing millions of dollars on lawsuits and courts when they can make something productive for their comsumers.Everything is politics!

spyx said:

*sigh* Microsoft and lawsuits never ending battle, anyways i surprised these two companies have much in common for more than just one lawsuit, anyone know who won the first one?

buttus said:

Everyone in tech sues everyone in tech. I wonder how many ongoing suits there are just with Microsoft alone?

sMILEY4ever said:

Neojt said:

haha this is a Your charging me too much about a deal we made years ago .

but im also suing you because you wont pay MY overcharging


I lold, but that's it.

KG363 KG363 said:

This is kinda legitimate, but I'm still tired of these lawsuits

edison5do said:

US federal courts are full of lawsuit, I cant imagine the amount of paperwork, workers must be overwhelmed.

miska_man said:

So if Microsoft can sue Motorola for charging to much for royalties, when can I sue for them charging too much for a Live subscription?

Ok, so I really don't think that's quite the same, but I am still wondering why the price of Live went UP instead of down even though they keep getting more subscribers?

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