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Wednesday, May 23, 2012
News Making Money

Apple Sues Motorola Over Licensing Wireless Patents

11/02/2012 02:46 (102 Day 12:58 minutes ago)

The FINANCIAL -- Apple sued Motorola Mobility, saying Apple's iPhone 4S is protected under a license agreement from Qualcomm .

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According to London Stock Exchange, the lawsuit, which was filed Friday in the U.S. District Court, Southern District of California, is the latest maneuver in a series of legal battles between smartphone makers that include litigation between Apple and Motorola in Germany.

With its latest case, the consumer electronics giant is attempting to ward off future injunctions from Motorola. In its suit, Apple said it should be protected from such court orders because of its rights as a customer of Qualcomm, whose chips are licensed by Motorola.

Apple's suit came after a German court dismissed a different Motorola suit against Apple earlier Friday. The dispute garnered particular attention when Motorola enforced an injunction from a local court there that made Apple temporarily suspend sales of some iPads and older iPhones because they allegedly infringed a Motorola patent.

The injunction was lifted, but around the same time, Motorola told the German court that Apple's newest smartphone, iPhone 4S, should have been blocked from sale as well, according to documents in the California case. Apple said in the documents that it argued its iPhone 4S is made using Qualcomm communications chips, and should benefit from Qualcomm's license with Motorola.

Motorola, on the other hand, had asked Qualcomm to revoke its license to Apple, the court document said. Qualcomm refused.

 

Apple, Motorola and Qualcomm all declined to comment.

These and other patent battles between smartphone companies have heightened concerns in high-tech circles about how companies treat what are sometimes called "essential" patents, which cover technologies that are necessary to create certain kinds of products.

Many standards-setting organizations ask member companies to license essential patents under what are called fair, reasonable and non-discriminatory terms, a commitment also known as FRAND.

Apple has repeatedly claimed that its competitors have violated FRAND commitments as litigation over smartphone technology has continued to rise. In November, Apple sent a letter to a European standards body asking for an overhaul of FRAND agreements and a framework for how those patents are licensed. Among its recommendations, Apple said there should be an agreed-to base royalty as well as promises that companies won't seek or enforce injunctions against any competitor alleged to have infringed a FRAND patent.

Cisco Systems has expressed support of Apple's recommendations, and Microsoft has made similar comments.

Google, which struck a deal last year to acquire Motorola Mobility for $12.5 billion, sent a letter to dozens of European standards bodies saying it will maintain many of Motorola's practices and prices for FRAND patents. But Google stopped short of promising it wouldn't use injunctions as part of its strategy. Though the U.S. Justice Department is expected to approve Google's takeover of Motorola, regulators in both Europe and the U.S. have expressed concern about Google's strategy.

 

Apple also asked the court to stop Motorola from seeking injunctions on the Qualcomm patent in Germany or elsewhere.

 

 

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