Microsoft rejects Motorola settlement offer in Xbox suit

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.

Microsoft and Motorola remain at odds.

"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.

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Discussion

0 comments
scratchisme
scratchisme

Sounds like they'll get the 720 out then?

jhpeter
jhpeter

Microsoft will eat google and motorola.

BryanParksSuper
BryanParksSuper

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.

aniemouse
aniemouse

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

inextremo88
inextremo88

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...

deathknightleo
deathknightleo

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

 

godzillavskong
godzillavskong

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

MajinSquall
MajinSquall

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

digi-demon
digi-demon

Doesn't google own Motorola these days?

Smell a Google Chrome Vs MS Internet Explorer thing going on here...

qualopec_1
qualopec_1

By the time all this debacle is over I'll bet Microsoft well have the new console.

Tsuchikage
Tsuchikage

I would've rejected Motorola's offer, too.  That's simply too large a cut from every Xbox 360 sold.

Kastigador
Kastigador

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.

Vodoo
Vodoo

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.

West123
West123

don't be evil --Google

guess that doesn't stand if the almighty dollar is at stake 

monson21502
monson21502

hope ms sues motorola so bad u wont even be able to google search for them!

buying1999
buying1999

There's no stopping the SUPERIOR Xbox 360.

 

The Xbox 360 is the BEST console EVER made. --John Carmack

OurSin-360
OurSin-360

Google will soon run the world, it is not a game. 

thenephariouson
thenephariouson

I think that whoever wins this battle, that the losing party will suffer for it.

Falru
Falru

 @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.

Ninjitsu_Gamer
Ninjitsu_Gamer

 @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. 

Temperedelm
Temperedelm

 @aniemouse Good Sony sheep, keep preaching to the Microsoft sheep. You may eventually get a few to join you.

DarkNeoBahamut
DarkNeoBahamut

 @inextremo88

 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...

deathknightleo
deathknightleo

 @inextremo88if you read stocks sony and nintendo both pay to use the patents. motorola said in a statement about this whole thing

 

 

jrmorgan23
jrmorgan23

 @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? 

AndRoo_DaGuru
AndRoo_DaGuru

 @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.

Dubbya44
Dubbya44

 @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.

Ringx55
Ringx55

 @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.

Zerabp
Zerabp

 @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...

pinching_perry
pinching_perry

 @Vodoo My thoughts exactly. Stretch it out a year with appeals and release the 720 in the summer instead of Holiday Season next year.

bakasora
bakasora

 @West123 You have to be somewhat evil to survive in these days.

woodyfr
woodyfr

 @West123 Google is evil like Facebook and other who doesn't respect your privacy.

ExplicitMike
ExplicitMike

 @buying1999

         "PS2 is the BEST console EVER made".--Explicit Mike

                You can quote me all you want on that.

96augment
96augment

 @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!!!!

nanorazor
nanorazor

 @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.

camverge
camverge

 @Falru

 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.

inextremo88
inextremo88

 @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.. 

MajinSquall
MajinSquall

 @AndRoo_DaGuru  i guess so but surely they could just replace the new components with the old one they used to use

nanorazor
nanorazor

 @James00715 But that division is like the majority of Motorola, the other part is a minority and seen as nearly nothing.

jhpeter
jhpeter

 @camverge Only crap countries like the one that made WWII banned xbox. Motorola is sh!t. MS will and is winning this war.

ExplicitMike
ExplicitMike

 @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.