Microsoft sued Motorola today, accusing the phone maker of charging excessive royalties on network technology used in Microsoft's Xbox game system. The specific tech in question are licensed from Motorola to Microsoft and are related to the Xbox 360's ability to connect to a network wirelessly over WLAN, as well as its ability to display videos running in the H.264/MPEG-4 AVC codec.
According to Microsoft, Motorola demanded "royalties that are excessive and discriminatory," and asked the court for compensation from Motorola. This means that Motorola charged Microsoft more for the licensing than they have other companies.Now Microsoft is asking the courts to determine a more reasonable royalty rate for the use of the technology, along with compensation from Motorola.The case is 2:10-cv-01823, complaint filed in the United States District Court for the Western District of Washington at Seattle.
Source: Reuters