Is Google Trying to Rob Microsoft Blind?
By Mark Knapp | December 19, 2012 5:53 AM EST
The anticipation at Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOG) must be boiling to the top, as both companies now await the verdict of their patent lawsuit, which could mean millions of dollars a year or far, far less.
What’s the deal?
In November, was brought to court by Motorola, which is now owned by Google, over the use of Motorola patents in Microsoft products like Xbox and Windows 8. Two key patents are a video compression and a Wi-Fi patent. The judge overseeing the case is expected to rule on it early next year.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
CHEAT SHEET Analysis: Will the judge’s decision move share prices, by how much, and whose?
One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. A court decision with in the balance certainly has potential to move share prices, but how much will depend on the valuation the Motorola patents receive.
What’s at stake?
Microsoft is pushing for each patent to be valued at less than $1 million per year, while Motorola sought to receive a percentage of Microsoft’s sales on products using the patents, which could amount to more than $100 million a year. For the video compression patent alone, Motorola is hoping for 200 times more than Microsoft believes it should pay. If the judge supports Motorola, Google could see a boost as it would own a valuable patent portfolio with Motorola. If the judge supports Microsoft, Google could dip down as its patent portfolio is devalued. Microsoft, in turn, would keep more of its product revenue.
Copyright Wall St Cheat Street All rights reserved.
Most Popular Slideshows
- Slow-Moving Yet Unrelenting Hawaii Lava Now Only Inches Away From Pahoa Homes
- 2014 MLB World Series Game 6: Kansas City Royals 10, San Francisco Giants 0 [PHOTOS]
- San Francisco Giants Beat Kansas City Royals, 3-2 In Game 7, Wins 2014 MLB World Series [PHOTOS]
- Cavaliers, LeBron James Flop In First Game Back In Cleveland; New York Knicks, Melo Pull Off Road Upset, 95-90 [PHOTOS]
Join the Conversation
- New Zealand Economy Benefits From Australia's Big Investments; Kiwi Down After RNBZ Comments
- ETF Outlook for Thursday, January 2 (FEZ, FXI, SPY, XHB)
- January Second Trading: Always Interesting
- 13 Things Investors Learned In 2013 - Part II
- Are Diversity and Quality the Way to Profit from the Rebound in Gold and Coal?
- NATO: Russia's Been Conducting Too Many Military Flights Over Europe
- Moto X 2014 vs. Motorola DROID Turbo - Specifications, Features And Price Showdown
- Dismantling Of Fukushima Reactor 1 Faces Delays, US Judge Gives Sailor Go Signal To Push Through Lawsuit Against TEPCO Over Radiation
- Samsung Galaxy Note Edge To Be Available Through T-Mobile In The US
- Five Extreme Drop Tests On BlackBerry Passport Reveals Its Endurance [Watch Video]
- Updated iOS 8 Pangu Untethered Jailbreak Now Fully Works with Cydia: Key Fixes & Mods to Expect
- Ex-Ohio Trooper Pleads Guilty To Issuing Sex as Penalty To Women Motorists