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Did Motorola Receive Patent Money from RIM?

Motorola Mobility has revealed in a filing that it received $175 million in an upfront payment from an undisclosed company as a part of a patent licensing deal.

According to an article on The Register (opens in new tab), the firm, whose patent agreement with Motorola increased the Android smartphone maker's pre-tax gains for the nine months ending on October 2, 2011 by $228 million, is most likely to be Canadian smartphone marker Research in Motion.

"The agreement includes provisions for an upfront payment of $175 million from the other company to the Company, future royalties to be paid by the other company to the Company for the license of certain intellectual property, and the transfer of certain patents between the companies," the filing read.

This is because BlackBerry maker Research in Motion was the only company to sign a patent licensing deal with Motorola back in June.

At that time, Motorola Mobility - which has since been acquired by Google - had said that the cross licensing deal will involve patents related to industry standard technologies like 2G, 3G, 4G, 802.11 and wireless email.

The filing revealed that the agreement had resulted in eliminating outstanding litigation between the two companies.

Désiré Athow
Contributor

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.