It was the finding of the International Trade Commission on Monday that Microsoft has violated four of Motorola's patents. Of the four patents found to be infringed, three of them are essential to the use of the Xbox, and should fall under FRAND (fair, reasonable and non-discriminatory) licensing, meaning that Motorola is all but required to license the patents at a reasonable rate. These patents include Wi-Fi and video decoding patents.
The rulings here are not final, however, Motorola's goal in the suit is apparently to force a settlement, by attempting to block Xbox exports. Motorola has demanded a 2.25% royalty on all Xboxes sold.
Motorola's statement on the matter is "Microsoft continues to infringe Motorola Mobility's patent portfolio, and we remain confident in our position. This case was filed in response to Microsoft's litigate-first patent attack strategy, and we look forward to the full commission's ruling in August."
Microsoft responded "We remain confident the Commission will ultimately rule in Microsoft's favor in this case and that Motorola will be held to its promise to make its standard essential patents available on fair and reasonable terms."
The investigation of all patent claimed is expected to complete around August 23.
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