Monday, May 14, 2012

Apple Files Complaint Against Motorola With EU Authority For Violating FRAND Terms

Apple Files Complaint Against Motorola With EU Authority For Violating FRAND TermsApple has complained to the European Commission that Motorola is violating the FRAND (fair, reasonable and non-discriminatory) terms around its standard-essential wireless patents, according to AppleInsider.

AppleInsider reports:
Apple's complaint was submitted to the Competition Directorate-General and asked for the commission to intervene "with respect to standards-essential patents" (SEPs). The iPhone maker alleges that Motorola has breached its Fair, Reasonable and Non-Discriminatory commitments for its SEPs.

FRAND commitments are vital to the establishing of industry standards, especially within the wireless industry. Companies are often required to agree to license their patents on FRAND terms to competitors in order before submitting their intellectual property to standard-setting organizations. Court filings show that Motorola has offered Apple a patent license, but Apple believes the 2.25 percent royalty rate that its rival is seeking is unfair, unreasonable and discriminatory.

As we had reported earlier, Motorola is demanding 2.25% of Apple's iPhone sales up to and including the iPhone 4. As revenue from those iPhone sales totaled $92.64 billion, it means that Motorola is demanding $2.08 billion for its 3G patent, which industry experts have felt is too much.
Apple had filed a series of discovery motions aimed at finding out how much Motorola charged Nokia, HTC, LG and Ericsson for the same technology. Motorola and now Google could get into serious trouble if Apple can prove that Motorola is demanding more money from them than its competitors.

According to Bloomberg, Motorola had denied the charge:
“MMI has a long-standing practice of licensing our patents on fair, reasonable and non-discriminatory terms and we offered those to Apple.”

Apple had to briefly remove all their 3G iOS devices except iPhone 4S from the German online store, after Motorola had won a preliminary injunction against Apple for infringing on its standard-essential wireless patents.

With this move, Apple has opened up the regulatory channel to fight the patent war against Motorola.

[source AppleInsider]

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