Motorola tries to Settle Royalty Dispute with Microsoft

Microsoft has a patent on a technology called ActiveSync which updates calendars and other data such as contacts, emails and tasks.  This proprietary software is used in all phones that use Google’s Android operating system.  As such Microsoft has been settling with all other phone manufacturers except for Motorola.  Royalties have yet to be set between the two companies.


The dispute is exacerbated by the fact that Motorola also has patented video and wireless technology which Microsoft uses in their Xbox consoles and Windows operating system.  Microsoft reported that Motorola has offered to pay royalties to Microsoft amounting to 33 cents for each Android phone using ActiveSync.  Google paired that possible settlement with a request that Microsoft pay out royalties amounting to 2.25% on each Xbox and 50 cents per copy of Windows software for Google’s patented technologies.

“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 Horacio Gutierrez, Microsoft’s deputy general counsel, in a statement.  Since no headway has been made to settle this royalty dispute, the International Trade Commission has considered imposing an import ban on all Xbox and Android phones.

Patents and industrial design rights fall under intellectual property law. Intellectual property laws protect the financial, social and moral interests of the person or company who invented the property.  These laws foster a spirit of innovation in the marketplace especially in the realm of technology.  These types of disputes between multiple businesses can truly benefit from the expertise of an proficient business attorney in the Chicago area.