Microsoft rejects Motorola settlement offer in Xbox suit
By
Eddie Makuch, News Editor
Seattle technology giant dismisses offer to pay royalty fee of 2.25 percent on every Xbox 360 sold.
The next chapter in the ongoing patent tussle between Microsoft and Google-owned Motorola Mobility has come to light. Reuters reports today that Microsoft has rejected a settlement offer from Motorola Mobility that would have the Seattle tech giant pay a royalty fee of 2.25 percent on every Xbox 360 sold.
"While we welcome any good faith settlement effort, it's hard to apply that label to a demand that Microsoft pay royalties to Google far in excess of market rates, that refuses to license all the Microsoft patents infringed by Motorola, and that is promptly leaked to the press," Microsoft's deputy general counsel Horacio Gutierrez said in a statement to the news outlet.
Other stipulations in the deal, according to Microsoft, include Motorola paying Microsoft 33 cents for each Android phone using calendar-updating software ActiveSync, and Motorola asking for 50 cents per copy of Windows for using its patents.
Last month, International Trade Commission judge David Shaw recommended a United States import ban for the 4GB and 250GB Xbox 360 S consoles, which are manufactured in China. Should ITC commissioners agree with Shaw's recommendation, President Barack Obama and advisors will have 60 days to review the decision. After this time, whatever is decided can be appealed.
In April, the ITC ruled that the Xbox 360 violated a string of patents Motorola holds for video decoding, Wi-Fi connections, and console-to-accessory connections. And in May, a German court decision banned the sale of Xbox 360 consoles in that country, though it had no immediate effect, because Microsoft was granted a preliminary injunction.
The ITC is expected to conclude its investigation by August 23.
By
Eddie Makuch, News Editor
Eddie Makuch (Mack-ooh) is a News Editor at GameSpot. He works out of the company's Boston office in Somerville, Mass., and loves extra chunky peanut butter.
251 comments
Microsoft is further digging there own grave. They now risk a full Ban of Xbox 360's in the USA. Microsoft know's they infringed on Motorola's technology and patent but they are to stupid enough to accept the settlement. I hope Xbox 360 does get banned in US cause than Sony will win Console War over Xbox 360 these past 6 years.
4 Like @BryanParksSuper Trust me, Motorola is far more interested in getting a big chunk of dough in a settlement from Microsoft than it is in banning the 360 in the USA. Motorola's problem is not that their patents are being used it's problem is that they're not getting any money for it.
Getting the 360 banned is not their goal.
And could you imagine the harsh reaction of the consumers who have purchased their console only to see their services shut down? I couldn't imagine that would go over well for either company in such crappy economic times.
eh screw xbox anyway do they even make games for that junk anymore i know there E3 show was a joke more gimics and no games. this would probley be a good thing for gamers instead of following the herd like most sheep americans they would buy a ps3 and see what a real gaming system is supposed to be like
2 Like @aniemouse So you're prejudiced against Americans AND 360 owners. Good for you.
It should please you to know that while you're out here doing the work of your lord and master Sony, not one person at the company knows your name.
6 Like @aniemouse Good Sony sheep, keep preaching to the Microsoft sheep. You may eventually get a few to join you.
Why MS and not Sony or Nintendo.. If it's true that only the xbox violates the Wifi patent, whichever this might be, and the other two do not, that basically means there's a different way to do it.. Of course patent trolling this days means to push someone against the wall and beat him for his launch money, as fast as possible, before help or sane people (judges in this case) can come to rescue...
Why MS and not Sony or Nintendo you ask? Easy, MS sued Motorola some months ago over a cellphone technology, so that's why. MS started this...
@inextremo88if you read stocks sony and nintendo both pay to use the patents. motorola said in a statement about this whole thing
@deathknightleo Of course the second part of my argument holds.. "Motorola is currently demanding Microsoft pay a 2.25 percent royalty against the final price of any product that includes H.264 video, or 17.94? for a 797.51? laptop.That compares to the maximum rate of 20 cents per product to license the other 2,300 patents in the H.264 standard and the 2 cents per copy of Windows paid by Microsoft under a volume discount plan". - The Verge - That post is from February though things might have changed since.. True I am not that informed on that matter, but that sounds like a lot of money, for the new troll in the business..
well if thi all goes bad for microsoft they going to have a harder time. with everything it going to be harder for the 720 if they use the same wireless patents on there controller or wi-fi they use now unless they make there own. or start paying for the patents
Microsoft told Motorola like a redneck once told me on the basketball court when he blocked my shot. He said, "Get that sh1t from down outta here!" :P
1 Like http://www.naturalnews.com/029286_rainwater_collection_water.html - Potentially pretty scary stuff.
@VGjunkie87 I LOVE naturalnews.com, thanks for diggin this article up out of the vault. It never ceases to amaze me the atrocities that go on in this country on a daily basis. I am however glad to hear of another video game enthusiast who pays attention to real-world problems. Remember EA getting voted worst company in America? or the world or whatever? What a joke. Monsanto....hello?
just a quick question is this for all 360's or just the new slim ones because if it is something new they put in the slim can't they just start selling the old ones again until they can sort it out? or am i barking up the wrong tree here
@MajinSquall There is no doubt, Microsoft will not backtrack manufacturing without the WiFi built-in. At most, they will simply change components, in an attempt to eliminate patent disputes.
@AndRoo_DaGuru i guess so but surely they could just replace the new components with the old one they used to use
Doesn't google own Motorola these days?
Smell a Google Chrome Vs MS Internet Explorer thing going on here...
@digi-demon these patent lawsuits have been going on for years. ms and apple ganged up on them when the android came out. this is just tit for tat.
@digi-demon It's more about MS charging manufactures of Android phones a certain fee on each phone sold because of patents. There were a lot of articles out about it.This just seems like a way to get back at them.
@James00715 But that division is like the majority of Motorola, the other part is a minority and seen as nearly nothing.
@qualopec_1 Unless they use a different method of connecting the controlers wirelessly it will just lead o the same legal battle though. This is a prime example of patent law being utterly broken imho...
5 Like I would've rejected Motorola's offer, too. That's simply too large a cut from every Xbox 360 sold.
Hey, the legal departments of these two behemoths gotta earn their paycheck too. This is probably wonderful for them. People's careeers are getting made right now.
5 Like Currently, Microsoft makes more money from Googles' Android OS having to pay them patent royalties then Microsoft makes from their own Windows 7 phones. This is a fact and you're free to look it up on PhoneArena.com if you don't believe me. So why MS doesn't negotiate with the ptent money they're already getting from Google is beyond me (Google now owns Motorola). Also, Microsoft may just try to delay this long enough to launch their next console, then say screw it... we're not paying you for the 360 now, we got the 720. Ban it all you want suxxors.
1 Like @Vodoo My thoughts exactly. Stretch it out a year with appeals and release the 720 in the summer instead of Holiday Season next year.
3 Like There's no stopping the SUPERIOR Xbox 360.
The Xbox 360 is the BEST console EVER made. --John Carmack
4 Like "PS2 is the BEST console EVER made".--Explicit Mike
You can quote me all you want on that.
2 Like @ExplicitMike And I would agree with you 100%. I wish the PS3 had the equivalent of even half of the PS2's huge game library.
@mrboone01 Me too. Maybe in 5 years PS3 will be like PS2. Given Sony track record lately I can only hope. PS3 isn't putting out games like PS2 did. I know is because of MS, but Sony had competition before and it didn't matter.
2 Like @buying1999 You like the Xbox, fine. You think it's the best system ever, whatever. But please for the love of god, STOP USING THAT FUCKING QUOTE!!!!
4 Like @buying1999 DOOM 3 came out in 2004. Carmack, and more importantly his opinions, haven't been relevant since. RAGE's only real function was to prove that.
@OurSin-360 There is a lot of definitions for game. War can be seen as a game of miltary superiority and death, while finance can be seen as a game of wealth and forward thinking by predictions. Russian roulette is a game but a lethal one.
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