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Microsoft files EU antitrust complaint against Motorola Mobility, claims unfair licensing practices
Early last week, the European Commission gave Google its blessing regarding the purchase of Motorola Mobility. But the honeymoon has been anything but relaxing for the search giant and its latest power-play acquisition, after Apple filed an antitrust complaint, claiming a breach of the company's FRAND obligations. Now Microsoft is waiving the antitrust flag as well, claiming that the company is reportedly abusing its standard-essential patents, impeding fair access to patents that are fundamental to regular device function -- this time dealing with video streaming and wireless connectivity. Microsoft Deputy General Counsel Dave Heiner has posted an appeal to the company's TechNet blog, outlining the issue and explaining that "Motorola is attempting to block sales of Windows PCs, our Xbox game console and other products," further claiming that "Motorola is on a path to use standard essential patents to kill video on the Web, and Google as its new owner doesn't seem to be willing to change course." The key issue at hand is patent pricing -- Microsoft claims that Motorola is demanding an impossibly high royalty of $22.50 for a $1,000 laptop, and that only covers fees for H.264 licensing. It's no secret that Motorola's patent portfolio was a key component of Google's acquisition, and so far it doesn't appear that the company is making any suggestion that Motorola ease up on licensing fees. As always, we'll be keeping an eye on the process, but hit up the source link below for the full scoop from MS.
Apple asks EU regulators to step in on Motorola patent dispute
Apple already asked the European Telecommunications Standards Institute for more transparency on FRAND licensing, and now it's seeking a full-blown intervention. Motorola Mobility claims it received a letter on Friday from the European Commission advising there has been a complaint against it from Apple. The letter also stated that Cupertino wants the Commission to enforce the firm's standards-essential patents that breach agreed FRAND commitments. This latest development comes just one day after a German court awarded Apple an injunction against Motorola's implementation of slide-to-unlock on smartphones, as well as an ongoing saga of similar disputes with the firm. It's also just days after the European Commission approved Google's acquisition of the handset maker, based on beliefs that it "does not itself raise competition issues."
Google after 2.25% of every iPhone sale
Google is in the process of acquiring Motorola and its 17,000 patents. Everyone from analysts to tech pundits are wondering if the search company will adopt the handset maker's aggressive patent litigation strategy. Legal experts criticize Motorola for violating the terms of FRAND, which requires patent holders to license standards-based patents to other companies under fair and reasonable terms. Motorola reportedly uses FRAND patents to sue rivals and asks for unreasonable royalty fees which seek compensation based on the selling price of a product, not the core technology it is licensing. In a letter sent to the IEEE standards organization, Google confirmed it would follow Motorola's lead in asking for a 2.25 percent royalty fee on the final selling price of a product. FOSS Patents likens this to MotoGoog wanting 2.25 percent of the selling price of an iPhone because it uses UMTS. Google also said it reserves the right to seek an injunction against a company that does not agree to these terms. Google's stance goes against the idea of FRAND licensing, says Florian Mueller of FOSS Patents. It also exacerbates the growing problem of FRAND abuse. Microsoft, Apple and Cisco have taken a stand against this abuse and support the principles of FRAND patent licensing. Google wasn't always this way, points out MG Siegler. When Google and its hardware partners were the target of several patent infringement lawsuits last year, Google legal counsel David Drummond spoke out vehemently against companies that litigate instead of innovate. Now that Google may soon have a heap of patents in its coffers, it's apparently becoming one of these lawsuit-hungry companies it recently condemned. [Via Fortune Apple 2.0]
Apple asks European standards body for more transparency on FRAND licensing
With its legal battles intensifying across the globe, Apple has appealed to the European Telecommunications Standards Institute, calling for a more consistent approach to the licensing of essential patents. In a letter dated November 11th, Cupertino outlined its issues with today's licensing system, with a particular emphasis on patents licensed on a FRAND basis. According to Apple, the entire telecom industry lacks a "consistent policy" on FRAND licensing -- an issue that, not surprisingly, is especially critical to the company's ongoing court cases in Europe. Because of this inconsistency, Apple argues, patent royalty rates are often negotiated arbitrarily and in secret, resulting in abnormally high rates and, of course, plenty of lawsuits. "It is apparent that our industry suffers from a lack of consistent adherence to FRAND principles in the cellular standards arena," wrote Bruce Watrous, Apple's head of intellectual property. The company went on to suggest an alternative solution, calling for ETSI to establish "appropriate" FRAND licensing rates for companies to follow, adding that these rates should be limited to an industry-wide standard, and that companies should be barred from using industry-essential patents to force injunctions.
Motorola wants 2.25 percent of Apple sales, in exchange for patent license
New details have emerged about the ongoing Apple-Motorola drama in Germany, courtesy of a court document uncovered by FOSS Patents. The two companies have been engaged in a patent battle of swelling proportion these past few months, with the most recent wrinkle unfolding on Friday, when Apple promptly removed (and returned) its 3G / UMTS-enabled iPads and iPhone 4s from its online German store, in response to a court ruling. At issue in this particular case is a Motorola patent that Apple wants to use under FRAND obligations, but Moto apparently isn't willing to license its technology for free. According to a court filing, the handset maker is asking for 2.25 percent of Apple sales in return for the license, though it remains unclear whether this pertains to sales of all products or, more likely, the 3G-enabled devices under consideration in court. Either way, though, Motorola would stand to see quite a bit of extra revenue, especially considering that Apple's iPhone sales have totaled about $93 billion since 2007. Under Motorola's request, the company would have made about $2.1 billion from these sales alone -- not to mention the payments it'd see from iPad sales, as well. Apple, meanwhile, has filed motions to access Motorola's licensing agreements with Nokia, HTC and other manufacturers, in the hopes of exposing a double standard.
Apple resumes sales of 3G iPhones and iPads in Germany
Earlier today, Apple was forced to remove the iPhone 3G, iPhone 3GS, iPhone 4 (not the iPhone 4S), and all 3G iPads from its online store in Germany. This injunction was short-lived as Apple appealed and the German court suspended the ban. The company told Slashgear, "Apple appealed this ruling because Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago." It also confirmed that "All iPad and iPhone models will be back on sale through Apple's online store in Germany shortly." According to FOSS Patents, the original removal was the result of a German court ruling in favor of Motorola that was handed down in early December. In this decision, the Mannheim Regional Court said Apple violated telecommunication patents owned by Motorola. Motorola had the option to enforce the ban by posting a 100 million euro bond and it appears that the company took this step earlier today. [Via FOSS Patents]
Samsung faces EU antitrust investigation over mobile patents
Samsung's European legal woes don't look to be abating anytime soon, as the EU today formally launched an investigation into the Korean manufacturers' competitive practices. At issue are, not surprisingly, a collection of patents that Samsung has used to launch a series of lawsuits against rival companies. The manufacturer maintains that these patents are essential to complying with European mobile standards, but the EU says Samsung may be in violation of a promise it made more than ten years ago. Back in 1998, the firm said it would license these essential telephonic patents to competing manufacturers, under the terms outlined in FRAND. The Commission explained the obligation and its potential ramifications in the following statement: The Commission will investigate, in particular, whether in doing so (seeking injunctions on patent infringements in 2011) Samsung has failed to honor its irrevocable commitment given in 1998 to the European Telecommunications Standards Institute to license any standard essential patents relating to European mobile telephony standards on fair, reasonable and non-discriminatory (FRAND) terms. The Commission will examine whether such behavior amounts to an abuse of a dominant position prohibited by Article 102 of the Treaty on the Functioning of the EU. No word yet on how long the investigation may take, but we'll be sure to keep you updated going forward.
EU antitrust body to investigate Samsung's use of patents against Apple
Apple has been waging a legal battle with Samsung over the look and feel of its Galaxy line of smartphones and tablets. In response, Samsung filed a series of its own patent infringement lawsuits against Apple that involve 3G technology. These countersuits may have landed Samsung in hot water with the European Union as some of these patents may be subject to FRAND (fair, reasonable and non-discriminatory) licensing terms. FRAND extends to patents that cover industry standards like 3G technology. Any company that's involved in the development of a standard must license patents essential to the technology at a reasonable rate and with reasonable terms and conditions. These patents are not supposed to be used as weapons in a legal battle. The European Commission has opened a preliminary investigation and is examining whether Samsung's lawsuits against Apple have abused FRAND standards. This investigation was first mentioned publicly in a recent court filing by Apple in California and later confirmed by Samsung in a statement released to Computerworld. Samsung has at all times remained committed to fair, reasonable and non-discriminatory licensing terms for our wireless standards-related patents. We have received a request for information from the Commission and are cooperating fully. Note that this is a preliminary investigation and the European Commission has not yet determined whether to conduct a full investigation. The European Commission will now gather information from all parties involved and will determine whether there's enough evidence for a full investigation. If the EC continues, Samsung could be forced to withdraw its lawsuits against Apple. It could also face a possible fine.
