Google says Microsoft's patent use worth $94bn by 2017

Google says Microsoft's patent use worth $94bn by 2017

Summary: Microsoft could generate billions thanks to Google's patented wireless technology, according to an expert witness, as the patent trial between the two technology giants wraps up.


An expert witness for Google's smartphone making Motorola Mobility unit testified on Tuesday that Microsoft could generate upwards of $94 billion in revenue through 2017, thanks to Google's patented wireless technology.

Micahel Dansky, an expert for Motorola Mobility, testified to a court on the final day of the Microsoft v. Google trial. He said that the Redmond, Wash.-based software giant could generate such large sums of revenue through Xbox accessories and technology, and Surface tablet devices. It also included a wireless adapter that Microsoft no longer sells, reported Reuters

However, it was not made clear how far back Dansky was counting past revenues, but Dansky noted that Motorola's video patents were "crucial" to Microsoft and therefore deserves more in terms of royalties. 

Earlier this year, it was clear that the Microsoft v. Motorola trial would go to court after a federal judge rejected motions from both companies for a summary dissolution in June

The trial was set to determine how much Microsoft should pay Google in royalties for a range of Google-owned Motorola patents. Motorola had wanted up to $4 billion a year for patents relating to H.264 video and wireless technology, whereas Microsoft says its rival should only get just over $1 million a year.

But should U.S. District Judge James Robart find in Microsoft's favor, it would theoretically make the $12.5 billion -- around $13 billion in total thanks to restructuring costs -- far more than what Motorola Mobility was worth, in spite of the vast bevy of patents Google picked up.

Also, and perhaps crucially, this trial will determine how much the Motorola patents are actually worth, meaning Google has far less leverage with its other patent partners that could lead to the search giant generating far less in negotiatory deals with other smartphone makers.

An outcome to the trial is not expected for some weeks, as both firms must file further paperwork to the court.

Earlier this year, Microsoft said it wanted "patent peace" in the ongoing Motorola patent battle.

In order to come to an agreement, a "lasting solution of these disputes will not be reached by leaking settlement positions through the press," said Microsoft general counsel Brad Smith and deputy general counsel Horacio Gutierrez in a blog post. "Patent peace will be found through good faith engagement."

Topics: Microsoft, Google, Legal, Patents

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  • Google's systematic patent trolling

    "Google's patented wireless technology"

    This almost makes it sound like Google did the innovating, when of course Google merely acquired the innovating company -- as part of a deliberate patent trolling strategy.

    Observe the many-headed hydra of Google, Inc. One mouth of the corporation laments the patent system, while another abuses it to snipe at their arch rival -- classic Google hypocrisy.

    Google is fundamentally a one-trick pony. The corporation led the way in search at a pivotal moment, in the early days of the web when the alternatives were extremely poor and usage was exploding.

    And Google has been dining out on search ever since, spending the cash on expansion -- mostly acquisitions, and imitation more than innovation. This includes their simple advertising service, propelled to popularity on the back of their monopoly in search, but it grows less and less profitable as the web evolves leaving Google behind. The company has been "resting on its laurels".

    Google is still overwhelmingly reliant on search for its performance as a business, and indeed for its identity as a tech giant in the public eye.

    However, search was launched a decade ago and the web has moved on while has barely changed. Thus, for example, Facebook overtook Google as the most popular website some time ago.

    Google is a dinosaur of the old web. It is overrated and over-valued, facing a future of decline.
    Tim Acheson
    • Old school?

      Last quarter Google's Android OS was the world's most popular client operating system by devices shipped. By a long stretch. This quarter they will run away with it, moving more units than the nearest competitor by twice.
    • Facebook?

      Facebook? Facebook is timewasting suck-a-thon everyone is getting tired of. It will go into the dustbin of history as another hula-hoop a lot faster than search, which is a net-essential.
      James Mooney
    • Tim Acheson

      You're as clueless as as a dog with severe brain trauma!
  • Google's gamble

    "this trial will determine how much the Motorola patents are actually worth, meaning Google has far less leverage with its other patent partners that could lead to the search giant generating far less in negotiatory deals"

    Indeed, this was a foolish gamble with purely malicious motives, which Google deserves to loose.

    The article rightly characterises Google as "the search giant" because after TEN YEARS that's still the supposedly innovative corporation's big claim to fame.
    Tim Acheson
    • You really

      dislike google, don't you!
      Little Old Man
      • Zombie Apples?

        Hmm, Apple Fanboi carrying on Steve's "Must Destroy Google" command from the grave?
        James Mooney
        • funny that

          When Tim is actually getting crazy at the mere mention of Apple.

          By the way, if you ever have some Internet experience, it is too easy to dislike Google.
  • Motoogle still makes stuff.

    These suits are lovely entertainment. One should take care not to project a winner. You never know what the courts will do.
  • Google Turn

    MS has had its turn changing the face of computing forever. It is Google turn. They may be a monopoly for a while but that's what it takes to overcome the old guard. IMO their ecosystem type approach is a great deal more ethical than the the methods employed by old school companies (telecoms, media etc). So chill Tim, a few bumps on the way to more open universal communications in the broadest sense.
    CJ London