UPDATE: Court Rejects Sales Ban Of Apple's iPhone, iPad In Germany

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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