Microsoft Wants To Pay Motorola Mobility $1.5 Million For FRAND Patents

James Johnson

Microsoft and Motorola Mobility have filed trial briefs in regards to their fair, reasonable, and nondiscriminatory (FRAND) negotiations, and Motorola believes that Microsoft should pay it a 2.25 percent share per device. According to Motorola, that price point is a "logical starting point" for all future negotiations.

Microsoft believes that the MPEG LA patent pool for Wi-Fi related patents is a better indicator for reasonable demand and pricing, and it hopes to receive the same patent price considerations.

According to Microsoft, the FRAND rate in 1012 for Motorola's H.264 standards-essential patents is $474,000 and the 02.11-related patents for 2012 should be set to $736,231. Throw those numbers together, and Motorola by Microsoft's math is owed $1.2 million.

Microsoft is also claiming that Motorola Mobility parent company Google agreed to license the patents under FRAND accepted prices based on the MPEG LA AVC patent pool.

Despite its request for MPEG LA AVC patent consideration, Microsoft says it will accept any FRAND licensing agreement the court deems necessary for H.264 and WI-Fi patents. Microsoft says it wants a court enforceable decision so it can end litigation with Motorola Mobility and Google.

Google and Motorola Mobility are already under investigation by the US Federal Trade Commission for violations in regards to standards-essential patent licensing.

FRAND licensing has become a big talking point for tech companies as they continue to battle an increasing amount of lawsuits filed by their fellow competitors and various "patent trolls" who create patents with the sole purpose of filing lawsuits to collect large paydays from tech companies.