The US District Court for the Western District of Washington issues first analysis of an appropriate royalty that a patentee could obtain after promising to license its patent on reasonable and nondiscriminatory (RAND) terms (Microsoft / Motorola)

On April 25, 2013, Judge James L. Robart of the U.S. District Court for the Western District of Washington offered the first analysis by a U.S. court of an appropriate royalty that a patentee could obtain after promising to license its patent on reasonable and nondiscriminatory (RAND) terms. Microsoft had sued Motorola for breach of contract, claiming that Motorola had breached its RAND obligation through two offer letters that (in seeking 2.25% of the net selling price of end products) would have required Microsoft to pay $4 billion. In an exhaustive, 207-page opinion, Judge Robart constructed a framework for determining an appropriate RAND rate and applied it to reach a result that, according to Microsoft, would require it to pay only $1.8 million. Standard-Setting Organizations and

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Michael A. Carrier, The US District Court for the Western District of Washington issues first analysis of an appropriate royalty that a patentee could obtain after promising to license its patent on reasonable and nondiscriminatory (RAND) terms (Microsoft / Motorola), 25 April 2013, e-Competitions April 2013, Art. N° 51803

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