Google Demands $4 Billion A year From Microsoft

    May 15, 2012
    Richard Stalker
    Comments are off for this post.

Microsoft’s years of bullying smaller companies into patent submission is about to come back and bite them in the butt. Today in court Google demanded $4 billion a year in patent fees for the Xbox 360 or stop selling it in the United States. Microsoft sees this as a huge slap in the face, but this kind of stuff has been going on between Microsoft and smaller companies for years.

Google recently purchased Motorola Mobility for $12.5 billion in what a lot of analysts saw as a means for Google to go after Microsoft in retaliation for the shady business practices Microsoft has been guilty of for years. On April 24th, Microsoft was found to be at fault of violating 4 out of the 5 patent violations that was filed against them.

If Microsoft doesn’t settle, and Google ends up winning, here is what’s at stake:

-Billions of dollars in money paid from Microsoft to Motorola and eventually, Google.

-The ability for other companies, like Qualcomm to control fees for patents they license.

-The ability for Microsoft to import Xbox into the U.S. from factories in Asia.

-Perhaps, ultimately, the ability for Android device makers to use Android without having to pay Microsoft royalties or be sued by the software giant.

Look for them to settle, mostly because of the future impact this case can have on nearly every patent license going forward.

Bottom line of Motorola’s argument: Microsoft should have responded to 2.25% patent royalty demand by negotiating, not filing U.S. suit. 4 hours ago via TweetDeck ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • http://www.taxinumbers.co Martyn

    Could the future involve a collaboration android and winphone? stranger things have happened!

  • Sam V

    The whole purpose of patents was to make the technology available to public by granting original inventors certain rights. Today the very system is being misused by corporations, buying patents and suppressing the technologies rather than making them available to public. Only people benefiting from patents are lawyers.

    It is time to fix the patent system:

    – restrict all patents to 5 years
    – abolish software / user interface patents
    – abolish life forms / seeds patents

    • Duglarri

      Sam V: More precisely the point of patents was to protect and compensate inventors, so they will invent, while providing limits so that society as a whole can benefit.

      The answer is not to provide a blanket reduction in patent protection- why not have the patent office study and set a date based on the invention? If an invention gathers the inventor a hundred billion dollars in one year, then the patent should expire in one year. If a great and useful idea will take thirty years, why not provide thirty years?

      This would introduce a very subjective element into the process- but it would be better than the blanket system we have now, which is based on what was thought to be reasonable in 1830.

    • nattydread

      It is time to fix the patent system:

      – restrict all patents to 5 years
      – abolish software / user interface patents
      – abolish life forms / seeds patents


  • Tango Fingo

    You know what they say, what comes around goes around.


  • WTF

    Oracle asserts claims on Android java API. What does Microsoft have to do with Android?

    • dabble53

      MS has asserted patent THREATS, without ever specifying exactly what patents are allegedly being infringed. Basically, an extortion racket. So they then license the patents, without ever specifying them. Basically, license from us or we’ll sue you, which will cost you MUCH more than the license would. Never mind the smoke and mirrors used to hide the patents.

  • http://www.coolmonsblog.com Coolmon

    What goes around comes around

  • http://www.willisallen.com Willis Allen

    Wow, sometimes I think these headlines have to be a spoof just by the numbers they are throwing around but I guess I shouldn’t be surprised knowing that it is Google and Microsoft.

  • Jack Lewallen

    Don’t be evil – what a load of crap…

  • http://www.technoslab.in Manish

    You cut what you sow.

  • Goople

    Looks like I’m switching to bing.

  • http://, Yves

    Google return to semder thé $$$ colect. be Microsoft for all Androïde phone sale

  • http://smsforgirlfriend.blogspot.com/ good morning quotes

    “A table, a chair, a bowl of fruit and a violin; what else does a man need to be happy?” ~Albert Einstein

  • player1

    done with google.

  • Renaldo

    They can mess with my website’s results in the SERPs, but when they mess with my XBOX, this means war!

  • http://www.comantra.net/ comantra

    Google can do anything any time and that will be the most updated one in tech world…