Sunday, December 25, 2011

Motorola Wins Against Apple

Motorola recently experienced victory as the company won against Apple regarding a patent case filed in Germany.

Motorola, the Android-based smartphone manufacturer filed the patent case against Apple when the company filed to license one of the wireless intellectual properties that the company utilizes. This intellectual property is included in the technology used by Apple in their iPhone and 3G iPad devices. This case is also related to a patent claimed by Motorola which is a "method for performing a countdown function during a mobile-originated transfer for a packet radio system." Motorola licenses their patent to other companies on FRAND (fair, reasonable, and non-discriminatory) terms. Since Apple lost this case, Motorola could try to force Apple to remove this feature from the devices that they offer or opt to stop sales in Germany.

Motorola expressed its contentment regarding the court decision in a statement released by Scott Offer, senior VP and general counsel of Motorola Mobility. Offer said that "We (Motorola) will continue to take all necessary steps to protect our intellectual property, as the company's patent portfolio and licensing agreements with companies both in the US and around the world are critical to our business. We have been negotiating with Apple and offering reasonable licensing terms and conditions since 2007, and will continue our efforts to resolve our global patent dispute as soon as practicable."

Companies who own a Frand-type patent is under obligation to license out their technology to third-parties due to the fact that this invention is considered to be "essential" to an industry standard. Apple had previously expressed their willingness to pay a Frand-set fee in the future as well as paying a similar rate for past infringements. Despite Apple's willingness to pay the needed fees, the company lost because it attempted to "retain the right to contest the validity of the patent with a view to past damages". Apple decided to go with this strategy because Motorola defended the company's right to charge an above-Frand rate to Apple for the past four years.?

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On the other hand, Apple expressed its discontent regarding the court's decision. Apple said that "we're (Apple) going to appeal the court's ruling right away. Holiday shoppers in Germany should have no problem finding the iPad or iPhone they want."

Source: http://www.ibtimes.com/articles/272434/20111224/motorola-apple-patent-case.htm

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