The European Commission issued a statement of objections to Google subsidiary Motorola Mobility indicating the Commission’s concern that the company may have abused its dominant market position when seeking to ban sales in Germany of Apple products that allegedly infringe Motorola’s standard essential mobile phone patents. In the EU, patented technology that manufacturers must use to meet a standard must be licensed on fair, reasonable and nondiscriminatory (FRAND) terms.
The EC stated that seeking to enjoin the sale of products that use standard essential patents when the alleged infringer is willing to pay FRAND royalties can constitute the misuse of a dominant position. It expressed concern that the threat to enjoin sales “can distort licensing negotiations” and yield license terms that could harm consumers. “The protection of intellectual property is a cornerstone of innovation and growth,” EC Chief Joaquin Almunia explained, “[b]ut so is competition.” He urged technology companies to focus on innovation and competition rather than employing “their intellectual property rights to hold up competitors to the detriment of innovation and consumer choice.”
An investigation into the issue will now move forward.