Thursday, June 06, 2013 11:47:47 AM
Msft saw three possibilities.
1- Very small chance the 2nd patent could be invalidated
2- Some chance the Goog RR could be 3.5% of 2.9%
3- A good chance the Goog RR could be 3.5% of 20.9% or more
Msft wanted to settle early in good faith and get something of a discount for their effort. Since there are still three possible scenarios as to how much Goog will eventually end up paying, and that it could be some time before Goog pays. Msft wanted to tie their settlement amount to Goog's amount so as to not over pay needlessly. That actually makes sense to me.
So the agreement was that for now Msft would pay something in the range of 3.5% of 2.9% (with something of a discount). And that it would be some combination of cold cash and possibly patents, if the two companies could come to some agreement as to which ones and how many. With a built in clause that if Goog ends up paying substantially more than 3.5% of 2.9%... then Msft's settlement amount increases to an already decided on but undisclosed amount (or percentage).
And like Postyle has already stated, there is a time based confidentiality agreement or hush period.
The Msft settlement is in fact not necessarily a bad deal for Vrng. Except from a short term publicity stand point.
This all seems extremely reasonable to me.
But of course I'm sure someone out there will want to shoot it down.
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