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An administrative law judge has made an initial ruling in favor of Motorola Mobility Holdings Inc. (MMI) that Microsoft Corp. (MSFT) infringed on patents for technology linked to the popular Xbox game console.
The International Trade Commission judge found that Microsoft infringed on four patents that deal with video display technology, but found that Microsoft didn't infringe on a fifth patent concerning WiFi connectivity.
The findings are recommendations to the commission. Microsoft will have the opportunity to respond in early May. The full commission is expected to rule in August.
Motorola said in a statement that it was "pleased" by the initial determination and that "we remain confident in our position" as the case moves toward a final ruling.
Microsoft's statement described the finding as a "first step in the process."
The action is related to the complex patent case that began in late 2010 and now spans courts in the U.S. and Europe dealing primarily with technologies for mobile communication and displaying video.
Redmond, Wash.-based Microsoft claims the patents at the heart of the case are part of a group of technologies companies agreed to share. It claims that Motorola has sought unreasonable and discriminatory royalties for its technology.
Libertyville, Ill.-based Motorola alleges Microsoft's use of those patents violates standard use covered by sharing agreements. Motorola claims it attempted to negotiate a separate license but Microsoft was unwilling to accept its terms.
On a key question in the case, the administrative law judge found that Motorola did have grounds to make infringement claims against the Xbox. Administrative Law Judge David Shaw found that Motorola met the "domestic industry requirement," meaning Motorola did have a game business to defend.
Microsoft first filed suit against Motorola in October 2010 in federal court in Washington State and at the ITC. Motorola counter sued in the same courts on the same patents plus some additional patents. A year later, the two companies file suit in Germany over some of the same patents.
Microsoft shares closed down 0.9% to $32.12 Monday and Motorola shares finished 1% lower to $38.43.
The International Trade Commission judge found that Microsoft infringed on four patents that deal with video display technology, but found that Microsoft didn't infringe on a fifth patent concerning WiFi connectivity.
The findings are recommendations to the commission. Microsoft will have the opportunity to respond in early May. The full commission is expected to rule in August.
Motorola said in a statement that it was "pleased" by the initial determination and that "we remain confident in our position" as the case moves toward a final ruling.
Microsoft's statement described the finding as a "first step in the process."
The action is related to the complex patent case that began in late 2010 and now spans courts in the U.S. and Europe dealing primarily with technologies for mobile communication and displaying video.
Redmond, Wash.-based Microsoft claims the patents at the heart of the case are part of a group of technologies companies agreed to share. It claims that Motorola has sought unreasonable and discriminatory royalties for its technology.
Libertyville, Ill.-based Motorola alleges Microsoft's use of those patents violates standard use covered by sharing agreements. Motorola claims it attempted to negotiate a separate license but Microsoft was unwilling to accept its terms.
On a key question in the case, the administrative law judge found that Motorola did have grounds to make infringement claims against the Xbox. Administrative Law Judge David Shaw found that Motorola met the "domestic industry requirement," meaning Motorola did have a game business to defend.
Microsoft first filed suit against Motorola in October 2010 in federal court in Washington State and at the ITC. Motorola counter sued in the same courts on the same patents plus some additional patents. A year later, the two companies file suit in Germany over some of the same patents.
Microsoft shares closed down 0.9% to $32.12 Monday and Motorola shares finished 1% lower to $38.43.
I'm interested to see how this turns out. Microsoft could still come out of this unscathed, but they could also be forced to stop selling 360s in the US if they lose.
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