Case Summary
### Case Summary: Microsoft Corporation v. Motorola, Inc.
**Docket Number:** 7838937
**Court:** U.S. District Court for the Western District of Washington
**Date:** The case was filed in 2010 and was an ongoing litigation for several years, with significant developments occurring in 2012 and beyond.
**Background:**
This case revolves around licensing agreements and patent infringement disputes between Microsoft Corporation and Motorola, Inc. Microsoft claimed that Motorola had violated their licensing agreements related to patents essential for certain wireless technologies. These patents were critical for the implementation of industry standards, particularly those pertaining to Wi-Fi and video coding.
**Key Issues:**
1. **Standard Essential Patents (SEPs):** The heart of the dispute involved patents that Motorola owned which were deemed essential to the industry standards, and whether Motorola had acted in accordance with its obligation to license these patents on fair, reasonable, and non-discriminatory (FRAND) terms.
2. **Licensing Agreements:** Microsoft argued that Motorola sought excessive royalties that were not in line with the FRAND commitments, making the use of the technology economically unfeasible for Microsoft.
3. **Injunctions and Remedies:** Microsoft sought declaratory relief and an injunction against Motorola’s enforcement of its patent rights due to alleged breaches of licensing commitments.
**Court Findings:**
1. The court initially ruled that Motorola's proposed royalty rates were not compliant with its FRAND obligations, which had to be just and reasonable.
2. The court found that Motorola had breached its contractual obligations by seeking injunctions against products from Microsoft that relied on the disputed patents.
3. The case continued to address various aspects of patent law, licensing practices, and the balance between protecting intellectual property rights and the promotion of innovation and competition.
**Outcome:**
The U.S. District Court ultimately ruled in favor of Microsoft on several key issues, mandating that Motorola adhere to its FRAND obligations. The decision underscored the need for balanced licensing of standard essential patents in the technology sector. This outcome helped to clarify the boundaries of patent rights, especially in relation to technology companies and their responsibilities toward fair licensing.
**Significance:**
The case is significant in shaping the legal landscape surrounding standard essential patents and licensing practices in the tech industry. It serves as a precedent for future disputes involving FRAND obligations and has implications for how companies negotiate patent licenses when their technologies are part of industry standards.