With a looming import ban from the ITC, Google’s newly acquired Motorola Mobility is now trying to play nice with Microsoft. In an attempt to squash the lawsuit, they have reportedly offered “a 33-cent tariff on each phone that uses Microsoft’s ActiveSync software, while asking for a 50 cent royalty on all Windows products that use H.264 video compression”.
Unfortunately, this simply will not do for Microsoft. “While we welcome any good faith settlement effort, it’s hard to apply that label to a demand that Microsoft pay royalties to Google far in excess of market rates, that refuses to license all the Microsoft patents infringed by Motorola”, states Deputy general counsel for IP, Horatio Gutierrez. A response is expected in two weeks, but it’s not likely to be in Motorola’s favor.