US District Judge James Robart in Seattle said Microsoft owed only a fraction of the royalties Motorola had claimed for use of its technology in Microsoft's Xbox console. Motorola wanted $4 billion a year for use of its wireless and video patents, while Microsoft argued its should get a million.
Robart decided the appropriate payment was about $1.8 million. David Howard, Microsoft's Deputy General Counsel, in a statement said that the decision is good for consumers because it ensures patented technology committed to standards remains affordable for everyone.
But Google bought Motorola for $12.5 billion hoping that its intellectual property would help it see off patent trolls. Robart's low valuation make Motorola's patents a weaker bargaining chip for Google to negotiate licensing deals with others.
The second patent trial is set for this summer in Seattle, will decide if Motorola breached its duty to license its so-called standard, essential patents to Microsoft on fair terms.