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.
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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