Microsoft Rejects Motorola’s Settlement Offer

Posted Jun 21, 2012

Microsoft has rejected an offer from Motorola to settle a patent lawsuit that would halt the importing of Android devices and the Xbox 360 gaming console. The patents connected to the case involve a Microsoft technology called ActiveSync, which Microsoft alleges Motorola uses to update calendars automatically on some Android phones. Motorola is demanding royalties for video and wireless technologies used in the Xbox 360 on the Windows operating system. Microsoft has been receiving royalties from phone manufacturers that support Android as part of a patent agreement. Motorola is the only company that did not make a patent agreement with Microsoft. Motorola Mobility is now owned by Google.

Motorola offered to pay Microsoft 33 cents for each Android phone using ActiveSync technology and they asked that in return, Microsoft gives them 2.25% of earnings from each Xbox console sold and 50 cents per copy of Windows. “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,” said Microsoft deputy general counsel Horacio Gutierrez. At 300 million copies of the Windows operating system being sold, Motorola would make $150 million.

Stay tuned to see what happens between both companies.