Microsoft filed the suit in 2010 against Motorola claiming that Moto’s proposed royalty rate of 2.25% for each Xbox and copy of Windows was not reasonable. Microsoft said that a rate that high would cost it $4 billion annually.
Motorola argues that 2.25% is the going rate and that, in any case, it was just an opening gambit in discussions with Microsoft, which apparently made a take-it-or-leave offer of about $1.2 million. Google left it, and here we are today.
A decision in the bench trial would put the first stake in the ground for what the law will say is a fair and reasonable royalty rate for essential patents. The Redmond software giant has said that it will pay whatever the judge decides is a reasonable royalty rate. Of course the losing side may appeal the judge’s decision.