A dispute between Microsoft and Google over the cost of a licence to use certain patents has culminated in a trial in Seattle. Google argues that Microsoft should pay fees of $4 billion per year for its use of connectivity and video coding patents help by Google-owned Motorola. But Microsoft believes the licence to use the intellectual property should cost far less – just over $1 million per year.
Microsoft claims that Google has requested an excessive amount of money for its FRAND patents (patents offered on fair, reasonable, and non-discriminatory terms). But deadlock was reached when Google insisted on negotiating a deal based on the starting point of a 2.25% royalty demand.
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