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(PC Magazine)   EU court rules that Motorola abused their dominant position over Apple... DAFARQ AM I READING?   (pcmag.com) divider line 11
    More: Unlikely, Motorola, MMI, regulations, European Commission, injunctions, antitrust laws  
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1135 clicks; posted to Business » on 06 May 2013 at 1:43 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-05-06 01:40:57 PM
The Layman's summary: With regards to standards essential patents - patents necessary for certain technologies which are considered technical standards (for example, patents necessary for WiFi/802.11x technologies as maintained by IEEE), the companies holding the patents are required, under law, to license those patents necessary for operating that standard under Fair, Reasonable and on a Non-Discriminatory basis.

The EC found that Motorola, which held certain standards-essential patents, failed to deal with its competitors in a fair, reasonable and non-discriminatory matter when it came to licensing of those patents.
 
2013-05-06 01:44:36 PM

RexTalionis: for example, patents necessary for WiFi/802.11x technologies as maintained by IEEE


Does not apply in Australia?
 
2013-05-06 01:49:51 PM
upload.wikimedia.org
 
2013-05-06 01:55:15 PM

RexTalionis: The Layman's summary: With regards to standards essential patents - patents necessary for certain technologies which are considered technical standards (for example, patents necessary for WiFi/802.11x technologies as maintained by IEEE), the companies holding the patents are required, under law, to license those patents necessary for operating that standard under Fair, Reasonable and on a Non-Discriminatory basis.

The EC found that Motorola, which held certain standards-essential patents, failed to deal with its competitors in a fair, reasonable and non-discriminatory matter when it came to licensing of those patents.


Can we get a version of this with a little less bias? ;)
 
2013-05-06 02:31:02 PM

Theaetetus: RexTalionis: The Layman's summary: With regards to standards essential patents - patents necessary for certain technologies which are considered technical standards (for example, patents necessary for WiFi/802.11x technologies as maintained by IEEE), the companies holding the patents are required, under law, to license those patents necessary for operating that standard under Fair, Reasonable and on a Non-Discriminatory basis.

The EC found that Motorola, which held certain standards-essential patents, failed to deal with its competitors in a fair, reasonable and non-discriminatory matter when it came to licensing of those patents.

Can we get a version of this with a little less bias? ;)


Nobody wants a situation where a particular companies cell phones to only work with towers made by the same company. That's why we create standards that everyone agrees to follow.

When standards are created, all the companies get together and out of the many ways you could do something, they pick one way. If your company happens to have patents on parts of that one way, you must pledge to license those patents to everyone else equally. If you aren't willing to make that pledge, the group picks another way to accomplish the same goal without using your patent.

As part of this process, everyone makes legally binding agreements that they will not misuse whatever patents they hold that become part of the standard.

Samsung and Motorola broke those promises and are now and now the EU has issued a preliminary ruling that doing so violated EU antitrust law

There are many, many steps left to go before things are finalized, but the consequences are quite serious. The EU issues enormous fines amounting to 10% of a companies yearly profit for antitrust violations.

For example, Microsoft was fined 794 million dollars in 2003 after being found guilty of EU antitrust violations. A few weeks ago, Microsoft was fined another 720 million dollars for violating the terms imposed as part of that last antitrust investigation.

The lesson to be learned here is that you can sue anybody you like over your patents right up until the moment you pledge to license them on Fair, Reasonable, and Non-Discriminary (FRAND) terms as part of creating a new standard.

If you try to use those patents as a weapon after that, it's going to cost you a buttload of money.
 
2013-05-06 02:31:29 PM
Why did google buy motorola again?
 
2013-05-06 02:34:08 PM
RexTalionis, it is even better than that.

Motorola isn't required by law to license the patents under RAND terms.  They're required to because Motorola themselves voluntarily offered to license the patents on RAND terms to get the technology into the WiFi standard.  They had the option not to do that.

In the EU, reneging on that commitment has been treated as an anti-trust issue (abusing a position made dominant through standardization).

In the US, they've been similarly smacked down, but by contract law rather than anti-trust.
 
2013-05-06 02:42:52 PM

gingerjet: Why did google buy motorola again?


Mostly because Andy Rubin was stoopid. (Or at least everyone at Google has decided to blame him for pushing the acquisition.)

You'll notice he's been removed from his Android leadership position.
 
2013-05-06 04:23:03 PM

BullBearMS: The EU issues enormous fines amounting to 10% of a companies yearly profit revenue for antitrust violations.


My bad. 10% of revenue is a much larger number than 10% of profit.
 
2013-05-06 11:21:26 PM

gingerjet: Why did google buy motorola again?


One might say there are 17,000 reasons Google bought Motorola.
 
2013-05-07 06:34:34 AM

gingerjet: Why did google buy motorola again?


The rumor I've heard is Google didn't realize Moto sold off all it's valuable patents years ago.

/no joke
 
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