Microsoft Wins Appeals Court Ruling, Potentially Lowering Patents Fees for Electronics Makers

A U.S. appeals court has upheld a $14.5-million verdict against Google, ruling that the company unfairly demanded billions of dollars for the use of patents covering Wi-Fi and video downloads on smartphones and computers. The decision, which may lower the rates electronics makers pay to license technology considered standard in their devices, is a victory for companies like Apple, Intel, and Hewlett-Packard that have been fighting to reduce their patent fees. According to a lawyer with Public Knowledge, a consumer group that backed Microsoft, the ruling "keeps prices reasonable for old products and allows new products to come to the marketplaces."

Key Takeaways:

• The appeals court upheld a $14.5-million verdict against Google, ruling that the company unfairly demanded billions of dollars for the use of patents covering Wi-Fi and video downloads.
• The decision may lower the rates electronics makers pay to license technology considered standard in their devices.
• Companies like Apple, Intel, and Hewlett-Packard have been fighting to reduce their patent fees, which are often linked to standardized technology developed by companies like Qualcomm, Ericsson, and Nokia.
• Google acquired the case as part of its 2012 purchase of Motorola Mobility and has retained most of the patents since selling the handset business.
• The ruling may impact the valuation of standardized technology in the wireless industry, with some companies arguing they need compensation for billions of dollars they poured into research.
• The decision upholds the principle of fair, reasonable, and non-discriminatory (FRAND) licensing, which requires companies to license patents on reasonable terms.

Statistics:

• $14.5 million: The amount of the verdict against Google.
• Billions of dollars: The amount of money Google demanded for the use of patents covering Wi-Fi and video downloads.
• 2012: The year Google bought Motorola Mobility.
• Three continents: The number of continents where regulators and courts have been wrangling with the issue of patent valuation.
• Billions: The amount of money poured into research by companies like Qualcomm, Ericsson, and Nokia.

Sources:

• Bloomberg