A federal jury in Seattle has ordered Google's Motorola Mobility to pay $14.5m in damages to Microsoft after failing to license its patents at a reasonable rate.
Microsoft claimed $29m in damages from Motorola Mobility for demanding royalties of up to $4bn a year for patented technology used in the Xbox consoles and Windows.
It contended that a royalty of 2.25% of the price of the products was much higher than standard licenses.
The dispute stems from Microsoft's attempt to sign a license with Motorola for its patents used in the H.264 video compression and 802.11 WiFi standards.
This is the second suit that Microsoft has won against Motorola.
Earlier in April, a federal judge in Seattle ruled that Microsoft had to pay only $1.8m a year in fair and reasonable royalties, far less than the $4 billion Microsoft said it would have paid at Motorola's demanded rate.
David Howard, deputy general counsel of Microsoft, said: "This is 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."
Motorola Mobility said it will appeal the decision in higher court.
William Moss, a spokesman of Motorola Mobility, said: "We're disappointed in this outcome, but look forward to an appeal of the new legal issues raised in this case."
Microsoft first filed a lawsuit against Motorola Mobility in 2010 with the US International Trade Commission.
The US Court of Appeals for the Federal Circuit is scheduled to hear arguments on 11 September 2013 on whether there should be different rules for standard essential patents, reported Bloomberg.