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

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.
Written by Zack Whittaker, Contributor

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."

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