Ninth Circuit Upholds First District Court Determination of FRAND Licensing Rate and Affirms $14.5 Million Damage Award

The Ninth Circuit has affirmed Microsoft’s $14.5 million jury verdict against Motorola, upholding the first federal bench trial decision setting a fair, abortion reasonable, and non-discriminatory (FRAND) licensing rate. Armed with the court’s FRAND guidance, the jury found Motorola violated its commitment to license its H.264 (video encoding) and 802.11 (WiFi) standard-essential patents (SEPs) under FRAND terms. We previously discussed SEPs and FRAND here. Motorola offered to license its H.264 and 802.11 SEP portfolios to Microsoft at 2.25% of the end-product price. Microsoft found that rate unreasonable and promptly sued Motorola, claiming status as a third-party beneficiary to Motorola’s FRAND   Read More »

Posted in Antitrust Litigation, FRAND, IP and Technology Litigation, Patent Litigation | Tagged , , , , , ,

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Recent Decision Highlights Complex Interplay Between Standard-Essential Patents and FRAND Licensing Terms

Patents confer upon the owner of the patent the right to exclude others from making, using, offering for sale, selling or importing the invention for a set period of time.  Tensions arise when patented technologies are included as part of industry technical standards, creating standard-essential patents that are required for system interoperability for certain technologies.  In such cases, patent owners can make contractual commitments to an industry standard-setting organization (SSO) to license technology on fair, reasonable, and non-discriminatory terms (known as FRAND or RAND) to promote such interoperability and provide lower product costs and increased price competition.  Standard-essential patents, however,   Read More »

Posted in IP and Technology Litigation, Patent Litigation | Tagged , , , , , , ,

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