Microsoft has agreed to settle a patent lawsuit case filed in January by Vringo for $1 million, along with an agreement to license patents that are currently owned by the mobile technology company under its subsidiary I/P Engine.
The specific terms of the settlement were detailed in a filing by Vringo with the U.S. Securities and Exchange Commission on Thursday. In January, the company said Microsoft was infringing on two of its patents (U.S. Patent Nos. 6,314,420 and 6,775,664), both of which relate to search engine software. I/P Engine acquired the patents from Lycos. In November 2012, a jury awarded $30 million in damages to Vringo, as they agreed that Google, AOL, IAC, Search & Media and Gannett all violated the same patents involved in the Microsoft case.
In addition to the $1 million one-time fee, Microsoft also agreed to pay Vringo five percent of the amount that Google will pay to use those patents. There is an undefined cap Microsoft will have to pay in this settlement, unless the amounts "substantially exceed the judgment previously awarded." Finally, Vringo's SEC filing states Microsoft will assign six patents relating to "telecommunications, data management, and other technology areas" to I/P Engine.
Source: Securities and Exchange Commission | Image via Vringo