German court bars Motorola from enforcing potentially FRAND-abusing patents against Apple

German court bars Motorola from enforcing potentially FRAND-abusing patents against Apple

A German appeals court has issues a temporary ruling that prevents Motorola (currently in the process of being acquired by Google) from enforcing a ban on Apple iPhones and iPads based on what may be FRAND-absuing terms. Bloomberg reports:

“At the current state of the proceedings, it is to be assumed that Motorola Mobility would violate its duties under antitrust rules if it continues to ask Apple to stop the sales,” the court said in a statement.

FRAND patents are considered essential to standards-based implementations of technology, and in exchange for a patent becoming part of a standard, they're expected to be licensed to anyone and everyone under Fair, Reasonable, and Non-Discriminatory (FRAND) terms.

Apple, which is suing many other companies based on non-FRAND (i.e. proprietary) patents, has been counter sued by Motorola and Samsung based on FRAND patents, something the European Union is now investigating.

It's probably too soon to tell how big a blow this is for Motorola, though Florian Mueller of FOSS Patents thinks it could be a deal breaker, especially in terms of how much value it takes out of the Motorola acquisition for Google:

Motorola was hoping to gain near-term leverage against Apple and Microsoft through the aggressive pursuit of injunctive relief based on standard-essential patents. Google, which was totally in agreement with MMI's litigation strategy, was hoping to buy that leverage for $12.5 billion, and Germany was a key part of that plan because its legal system places a relatively high burden on implementers of standards invoking the FRAND defense. In fact, Google's public statement on the post-acquisition use of MMI's patents proposed the German approach to FRAND as the way forward for the whole world. With today's ruling, Googlorola's strategy has failed even before the companies have formally merged. This is such a major blow to Google's patent strategy that, from a mere shareholder value point of view, it should now give serious consideration to the possibility of coughing up the $2.5 billion break-up fee agreed upon with MMI's board of directors and walk out on this deal. After all, that $2.5 billion payment would be an affordable subsidy for the only totally Google-aligned company among the major handset makers. But in all likelihood, Google will nevertheless try to close the deal, if only to avoid a colossal embarrassment for its CEO and other decision-makers.

This doesn't affect Motorola's other cases against Apple, including the non-FRAND win on pager sync patents that forced Apple to stop providing push email for German iCloud and MobileMe users.

Source: Bloomberg, FOSS Patents

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, ZEN and TECH, MacBreak Weekly. Cook, grappler, photon wrangler. Follow him on Twitter, App.net, Google+.

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There are 13 comments. Add yours.

iDavey says:

Can we stop using FOSS as a reliable source.
This was the man that said over and over that Oracle would have Google on its knees by now, and yet he was wrong.
This is also the man that stated that Android would be reeling from the Apple attacks by now and that Microsoft would be swaying OEM to WP7...yet that hasn't happened yet either.
His guesses are no better than anybody's on this comment board.

Inappropriate Response says:

the bbc doesn't agree with your opinion.

iDavey says:

Well as I said...his prediction so far has been...far from accurate. Not even close.
I'm still waiting for Google to tear apart Android because of the Oracle suit.

Oletros says:

Well, Mueller is clearly lying in their last blog post.

Guest says:

No, we can't, because Florian is 100% reliably pro-Apple and anti-Google in every article he posts.

Inappropriate response says:

which is why he uses an Andriod phone .. Good dic work magnum.

Oletros says:

He can use what he wants, his posts ere the ones talinkg about his bias

Inappropriate Response says:

then he's not 100% biased is he - what is more likely, is that you can't stand it when anything to do with android is shown in a bad light (ie abuse of FRAND) suddenly - "oh he's biased because he wrote bad words about android" - it's children like you that are attaching emotion to this - grownups see it more as what's lawful and what's abusing the legal system.

9thwonder says:

You should be EXTREMELY wary of discussions of patent law, trademark law, or copyright law by people that don't practice law in those areas and discussions of those subjects on tech blogs.

Rolf says:

Dat proof-reading. Typos in the first sentence.

FlopTech says:

Motorola Mobility: "Fork over the cash. If you cancel the deal, we'll start suing you all over again."
Google: "Dude, the deal was only a beta. It's going to expire soon."

Mainak says:

Florian is THE most pro-Apple guy I have ever seen. All this patent litigation is helping no one.