The Microsoft vs. Motorola patent trial took a new twist when an expert presented by the Google-owned facility commented that Microsoft stands to earn around $94 billion in royalties from its patents over the next five years. The trial has been going on ever since Google’s acquisition of Motorola Mobility. Reportedly, Google is not happy with the amount Microsoft is willing to pay it on an annual basis. The patents under contention are related to Google’s wireless technology.
Micahel Dansky was presented as an expert witness to shed light on what the adequate value would be for Microsoft’s patent use. According to his testimony, Microsoft will generate royalties through the Surface tablets, Xbox and its accessories. Also, the patents also cover a certain type of wireless adapter which is now out of Microsoft’s product line. He surmised that the total revenue generated could be in the region of $94 million till 2017.
However, at no stage did Dansky enlighten the court about whether he was including any retrospective revenue in the figure. On the other hand, he made strong points about Motorola’s video patents. He made it quite clear that Microsoft have great use for the patents. Hence, he concluded that the royalties paid by Microsoft to Google should be greater.
Till now, Google wanted up to $4 billon as royalties annually. The amount would cover the patents related to wireless technology as well as H. 264 video. Given that Microsoft can earn close to $100 billion over the next five years using these patents, paying $20 billion during that time doesn’t seem like a bad deal.
Yet, Microsoft doesn’t think that the patents are worth anywhere near the sum Google is asking for. Microsoft has offered to pay Google $1 million per year as royalties for their patent usage. Google would be anxiously awaiting the verdict of the ongoing trial. The judge’s decision would have a huge influence on whether Google’s decision to buy Motorola Mobility was right or not.
After all, the internet giant has paid close to $13 billion for the company it now uses for producing smartphones. If it fails to earn them substantial royalties from Microsoft, it could compromise their negotiating position with other companies. There are several companies which want to use Motorola’s patents. For now, it seems like it would some time before a decision is reached in the Microsoft vs. Motorola trial.
[image Via Winbeta]