Microsoft Sues Motorola Over 'Excessive' Xbox Royalties

Microsoft has sued Motorola for demanding "excessive" royalties for the use of its patented technologies used in Microsoft's Xbox 360 games console.

The software giant, which had filed a patent infringement lawsuit against Motorola last month, has claimed that the company is asking for royalties that violate an agreement to charge royalties under “reasonable and non-discriminatory terms and conditions.”

The lawsuit was filed in the US state of Washington, and has asked the courts to force Motorola to adhere to the legally binding agreements and compensate Microsoft for breaching the contract.

A Microsoft spokesperson said in a statement: “Those commitments are designed to benefit all parties that rely upon these standards, and Microsoft has been harmed by Motorola's failure to honour them in recent demand letters seeking royalties from Microsoft.”

According to the lawsuit, Motorola, which has benefited from developing smartphones based on Google's Android OS, is 'discriminatorily' targeting Microsoft's Xbox 360 business line and other products like Windows 7 and Windows Phone 7 by charging "disproportionate" royalty fees.