If you've been following the Microsoft-Motorola saga over the past few years, you'll know that the two companies have been feuding over royalty payments since 2012. The fighting has been so intense that Samsung decided to jump into the fray, only to end up settling out of court. Motorola, however, tried to set up injunctions and stop sales of the Xbox 360 in 2013. The case has been ongoing, with the ITC stomping on the injunction. Now, an appeals court has upheld the initial ruling of Microsoft's royalty victory and Motorola must pay up.
The US Court of Appeals for the 9th Circuit has agreed with the decision to have Motorola pay Microsoft $14.5 million for violating license agreement in relation to patents the company were using over the past five years. This finally puts Motorola in the losing position of the half-decade lawsuit, and will require all handset and tablet manufacturers using Android as their operating system to pay Microsoft royalties for use of their patents.
From the ruling,
With the parties' consent, the district court conducted a lengthy, thorough bench trial on the RAND rate and range. The court analyzed that evidence in its exhaustive findings of fact and conclusions of law, in a manner consistent with the Federal Circuit's recent approach to establishing damages in the RAND context. The court's factual findings were properly admitted at the jury trial. The jury's verdict was supported by substantial evidence, and its damages award
was proper. The judgment of the district court is AFFIRMED.
That's about as emphatic as it gets. The key here is that no judge before the one presiding over the case had ever ruled on what was a "fair and reasonable" basis of use for patents regarding smartphones and tablets. Well, the judge here determined that the rate of use can be pretty low, and would still fall under that clause. This sets a precedent moving forward that other companies will have to abide by. Plus, it keeps in place the funny and ironic notion surrounding the ordeal that Microsoft gets paid for each use of Android.