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| Google withdraws patent claims against Microsoft | Google withdraws patent claims against Microsoft |
| (about 3 hours later) | |
| Google has ended one patent war with Microsoft over video compression technology used in the Xbox 360. | |
| The firm had also argued that Microsoft was using its wi-fi innovations. | The firm had also argued that Microsoft was using its wi-fi innovations. |
| Google has now asked the US International Trade Commission, which handles patent disputes, to withdraw both claims. | Google has now asked the US International Trade Commission, which handles patent disputes, to withdraw both claims. |
| It had previously said in court that Microsoft should pay up to $4bn (£2.5bn) a year to use its connectivity and video coding patents. | It had previously said in court that Microsoft should pay up to $4bn (£2.5bn) a year to use its connectivity and video coding patents. |
| Microsoft had argued that the patents, which belong to the Motorola Mobility Unit owned by Google, were only worth about $1m (£623,000) per year to use because the technology they related to is so essential to the tech industry as a whole. | Microsoft had argued that the patents, which belong to the Motorola Mobility Unit owned by Google, were only worth about $1m (£623,000) per year to use because the technology they related to is so essential to the tech industry as a whole. |
| Licence fees | Licence fees |
| Google countered that the two firms should have tried to negotiate a deal based on the starting point of a 2.25% royalty demand, which it described as "the only logical starting point" since it had agreed other licences on this basis. | Google countered that the two firms should have tried to negotiate a deal based on the starting point of a 2.25% royalty demand, which it described as "the only logical starting point" since it had agreed other licences on this basis. |
| Had the dispute gone ahead, a jury would have been asked to rule over whether that royalty fare was too high. | Had the dispute gone ahead, a jury would have been asked to rule over whether that royalty fare was too high. |
| Microsoft's refusal to discuss a deal on these terms prompted Motorola to file lawsuits in the US and Europe last year, seeking to block several Microsoft products from sale on the basis that its rights had been infringed. | Microsoft's refusal to discuss a deal on these terms prompted Motorola to file lawsuits in the US and Europe last year, seeking to block several Microsoft products from sale on the basis that its rights had been infringed. |
| In May 2012, Google succeeded in winning an injunction against Microsoft in Germany, allowing it to impose a sales ban there against the Xbox 360 games console, Windows 7 system software, Internet Explorer browser and Windows Media Player. | In May 2012, Google succeeded in winning an injunction against Microsoft in Germany, allowing it to impose a sales ban there against the Xbox 360 games console, Windows 7 system software, Internet Explorer browser and Windows Media Player. |
| But another judge overruled the ban. | But another judge overruled the ban. |
| A Microsoft spokesman said another row over licensing terms for these patents is ongoing. That row will be decided in a US district court rather than by the ITC. | |
| Price of patents | Price of patents |
| "It's noticeable that in the last two to three years the pace of product development has slowed down because everyone is terrified of patent disputes," Chris Green, tech analyst at DMG Europe, told the BBC. | "It's noticeable that in the last two to three years the pace of product development has slowed down because everyone is terrified of patent disputes," Chris Green, tech analyst at DMG Europe, told the BBC. |
| Mr Green added that many large companies were investing too much time and money in patent disputes. | Mr Green added that many large companies were investing too much time and money in patent disputes. |
| Google has yet to comment. | Google has yet to comment. |