Microsoft wins landmark patent ruling Microsoft has won the second stage of a landmark patent case against Google's Motorola unit, as a jury in Seattle concluded that the mobile handset maker had breached some its commitments to technology standards bodies. The verdict follows a decision that also went in the software company's favour in the first part of the case, concluded in April. The earlier ruling, which dealt with how royalties payments should be calculated for patents that are included in technology standards, was seen as of far broader significance for the patent disputes that have rocked the smartphone industry. The jury in federal court in Seattle concluded late on Wednesday that Motorola had breached its undertakings to license its so-called standards essential patents on reasonable, non-discriminatory terms. The jury also handed Microsoft $15m in damages, around half of the amount it had claimed. The dispute sprang from Microsoft's attempt to negotiate a licence from Motorola for its patents used in the H.264 video compression and 802.11 WiFi standards. Microsoft claimed that Motorola's suggested royalty level would have cost it $4bn and showed that it was not negotiating in good faith. Motorola argued that the rate was an opening shot in a negotiation, rather than a final demand. In the first stage of the trial, Judge James Robart ruled that Microsoft should pay only $1.8m a year for the Motorola patents. That decision was seen as an important precedent for the tech industry in determining how royalties on standards essential patents are set. The conclusion of the second phase of the trial now opens the way for Motorola to appeal Judge Robart's ruling to a higher court. "We're disappointed in this outcome, but look forward to an appeal of the novel legal issues raised in this case," Motorola said on Wednesday. Microsoft called the verdict "a landmark win for all who want products that are affordable and work well together. The jury's verdict is the latest in a growing list of decisions by regulators and courts telling Google to stop abusing patents.