Microsoft settles patent lawsuit with Vringo, will pay $1 million

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

Report a problem with article
Previous Story

Rumor: Nokia's 41-megapixel Windows Phone being tested on AT&T under 'Elvis' codename

Next Story

Kim Dotcom wins access to evidence found in Megaupload raid

17 Comments

Commenting is disabled on this article.

I guess Google has to pay all the fines because MS will just use the $$$ it makes off of Android to pay their fees...LOLZ....

Showan said,
I guess Google has to pay all the fines because MS will just use the $$$ it makes off of Android to pay their fees...LOLZ....

microsoft is only paying that much because they are giving the company 6 patents.

Actually, they're probably just covering legal fees (capped at $1M). The reassignment of patents helps I/P Engine in their legal battles against Google -- the defendant for infringement, after all, cannot simply jointly sue along with their accuser.

stupidest comment ever!! you have to pay the fine because microsoft make it off selling windows to you.

and google never pay $ to microsoft. its the OEM who does.

LOL, it's only $1M plus 5% of whatever Google pays (in other words, Google's paying 95% of any damages).

Specifically something between 1m and 30m.
However, the 5% is about how much Google will pay the licenses, it includes fees and *deals*.
In any case, 1m or 30m is spare charge for MS.

Their 5% (v. 95%) is when considering the search engine technology market share. Considering the Yahoo and AOL deals, the underlying tech is either MSFT or GOOG. With the monopoly in the space, Google pays the largest fees.

(It's worth noting, MSFT will only pay up to $30M additional to the $1M. Google, however, is not limited to $570M damages [if $30M is 5%, then $570M is 95%]... leaving Google exposed to even larger punitive damages than merely $570M. In the end, great deal for MSFT b/c they've basically joined forces with I/P Engine to financially screw Google.)

Actually Microsoft traded some of their own patents - which are worth a LOT of money. Google doesn't have any patents worth trading. The patents they paid $12.5 billion for (Motorola) even Jay Leno wouldn't trade for a joke.

Gotta love people who think Google only bought Motorola for the patents. Couldnt have anything to do with the new info on their new phone, Moto X. And the little info currently known about it, sounds like a cool device. And who knows what else they may be working on.

But people believe what they want to.

so you are telling us that Google paid $12.5 billion for a phone that has not even been released yet and probably will look like every other Motorola phone. /s

They paid for the patents in hopes of getting lots of revenue from MS on the xbox and stuff which failed very badly.

Who knows what they have planned. And yes, the ability to produce your own hardware can be a really good thing and if successful, amount to some good profit. Right now Google relies on Asus, Samsung, LG...to create their hardware. MM opens them up to a whole new way of doing things. Yes, they bought MM for patents but that was just part of the reason. Not the whole reason like lots like to think.

I highly doubt anyone would be dumb enough to pay 12bil for patents that are not worth nearly that much. And whatever they dreamed of getting from MS, it wouldnt of amounted to what they paid for MM. And if Google didnt buy MM, someone else would of and tried to screw them over. Patents are being used by everyone to screw over the competition. Google is just a hot/easy target right now.

Motorola really didnt have that bad of a design with their phones to begin with. It was their performance that was the problem.

Edited by techbeck, Jun 1 2013, 2:57am :

techbeck said,
Gotta love people who think Google only bought Motorola for the patents. Couldnt have anything to do with the new info on their new phone, Moto X. And the little info currently known about it, sounds like a cool device. And who knows what else they may be working on.

But people believe what they want to.

Its gonna be embarrasing when google starts paying microsoft to use android.