All diagnostics are done remotely, using radio signals.

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The information, which can include traffic information, weather, stock quotes, news, sports and dozens of other snippets, would be transmitted to the watches not by any fancy third-generation wireless phone technology, nor via satellite, but rather by FM radio signals using a technology called DirectBand.

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Aura is a fabless semiconductor manufacturer backed in part by Motorola (nyse: MOT - news - people ), which specializes in using magnetic technology as opposed to radio signals for near-field communications.

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The receiver then reassembles the signals using complex mathematical algorithms to sort out the jumbled radio waves so that they can be read easily.

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Krulwich counted at least five Microsoft patents related to determining phone location using wireless access points, radio beacons, device movements and other radio signals.

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