By Bill Rigby and Dan Levine
Nov 13 (Reuters) - Microsoft and Google's Motorola Mobility
unit squared off on Tuesday at a trial with strategic
implications for the smartphone patent wars and which could
reveal financial information the two companies usually keep
under wraps.
The proceeding in a Seattle federal court will determine how
much of a royalty Microsoft Corp should pay Google Inc for a
license to some of Motorola's patents. Google bought Motorola
for $12.5 billion, partly for its library of communications
patents.
If U.S. District Judge James Robart decides Google deserves
only a small royalty, then its Motorola patents would be a
weaker bargaining chip for Google to negotiate licensing deals
with rivals.
Apple Inc and Microsoft have been litigating in courts
around the world against Google and partners like Samsung
Electronics Co Ltd, which use the Android operating system on
their mobile devices.
Apple contends that Android is basically a copy of its iOS
smartphone software, and Microsoft holds patents that it
contends cover a number of Android features.
Motorola had sought up to $4 billion a year for its wireless
and video patents, while Microsoft argues its rival deserves
just over $1 million a year. A federal judge in Wisconsin last
week threw out a similar case brought by Apple against Google
just before trial.
In court on Tuesday Microsoft called Jon DeVaan, a veteran
software manager in the Windows division, as its first witness.
He said Motorola's wireless and video patents at issue covered
only a small part of the overall Windows architecture.
During the run-up to trial in Seattle, both Microsoft and
Google asked Robart to keep secret a range of financial details
about the two companies, including licensing deals and sales
revenue projections. Google requested that Robart clear the
courtroom when witnesses discuss those details.
However, in an order on Monday, Robart rejected that
request. The public will not be able to view the documents
describing patent deals or company sales during trial, Robart
ruled, but testimony will be in open court.
"If a witness discloses pertinent terms, rates or payments,
such information will necessarily be made public," the judge
wrote.
Additionally, any documents the judge relies on for his
final opinion will be disclosed, Robart wrote on Monday.
Before trial began on Tuesday, Robart said in court that he
wanted to take the most "expansive" interpretation of the
public's right to know. Several outside companies besides
Microsoft and Motorola, like Research in Motion Inc,
have also asked him to keep secret their royalty deals.
Robart said he would consider a request to refer to those
third party companies by code names, known only to the lawyers
and the judge.
The case in U.S. District Court, Western District of
Washington is Microsoft Corp. vs. Motorola Inc., 10-cv-1823.
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