UPDATE: Court Rejects Sales Ban Of Apple's iPhone, iPad In Germany
February 27 2012 - 12:39PM
Dow Jones News
A German court Monday said Motorola Mobility Holdings Inc. (MMI)
can't enforce a sales ban on Apple Inc.'s (AAPL) iPad and iPhone
devices in Germany for the time being, while Motorola would be
infringing antitrust obligations if it demands Apple cease sales of
the affected products.
The Karlsruhe higher regional court's summary assessment is
based on an appeal by Apple against a lower court's earlier
injunction barring Apple from selling certain iPad and iPhone
devices in Germany. That injunction, which Motorola brought against
an Apple affiliate for allegedly infringing on patents for cellular
communications, briefly forced Apple to stop selling certain
devices earlier this month.
The court said Apple defended itself against Motorola's charge
that iPhones and iPads infringe its patent by arguing that
forbidding the use of the patent would hinder competition.
Since Apple made Motorola a new offer for patent licensing terms
which the court said adequately takes into account Motorola's
interests, Motorola - which is being taken over by Google Inc.
(GOOG) in a $12.5 billion deal - would breach anti-trust
obligations should it try to enforce a sales ban for the time
being, the court said in an emailed statement.
The Karlsruhe court said Apple's new offer, unlike its previous
offers, now contains a provision under which Motorola may terminate
the licensing deal should the patents' legal validity be
challenged.
Neither Apple nor Motorola immediately responded to emailed
requests for comment.
The case relates to a standard essential patent, or a kind of
patent deemed crucial for a particular industry. Holders of such
patents are obliged to license them to competitors on fair,
reasonable, and non-discriminatory terms, known as FRAND terms.
Legal disputes over FRAND patents have flared up in courtrooms
around the world as telecommunications players fight for dominance
of the smart phone market. Sales of the devices have rocketed in
recent years, giving rise to a plethora of lawsuits involving
Apple, Motorola, Samsung Electronics Co. Ltd. (005930.SE, SSNHY),
HTC Corp. (2498.TW, HTCXF) and others.
Regulators such as the European Union are trying to crack down
on companies they suspect of patent abuse. Earlier this month, the
commission started a formal investigation into whether Samsung is
using standard-essential patents to sue rivals.
-By Harriet Torry, Dow Jones Newswires: +49 69 29725 511:
harriet.torry@dowjones.com (Ian Sherr and Frances Robinson
contributed to this article.)
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