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Microsoft hits Motorola, Google with EU complaint
Question of the Day
BRUSSELS (AP) - Microsoft on Wednesday lodged a formal complaint with the European Union’s competition regulator against Motorola Mobility and its soon-to-be owner Google, saying Motorola’s aggressive enforcement of patent rights against rivals breaks competition rules.
Motorola is in the process of being taken over by Google for $12.5 billion, the biggest acquisition in the Californian company’s history. Microsoft fears that Google will continue Motorola’s tight hold on key patents.
“We have taken this step because Motorola is attempting to block sales of Windows PCs, our Xbox game console and other products,” Dave Heiner, Microsoft’s deputy general counsel, wrote in a blog post.
A spokeswoman for Motorola didn’t immediately respond to an emailed request for comment.
The complaints are the latest development in increasingly acrimonious disputes between global technology giants over patents on standardized technologies.
Industrywide standards play an important role not only in the technology sector. They allow products from different companies to function seamlessly together _ different mobile phones or tablet computers connecting to the Internet and each other via 3-G or Wi-Fi networks, for example. Under EU competition rules, holders of patents necessary for industry standards are required to let other companies use them for a fair price.
But regulators and companies complain that holders of standard-essential patents have tried to gain an edge in the market by suing rivals over the use of their patented technologies.
When the European Commission, the EU’s competition watchdog, cleared Google’s takeover of Motorola earlier this month, it indicated concern over Motorola’s aggressive patent enforcement. The Justice Department in its clearance of the merger made similar comments.
Separately, the Commission has already launched a formal investigation into Samsung’s similar approach to patent protection and has warned that other probes may follow.
Microsoft says Motorola is demanding an unreasonable fee for using its patents, amounting to 2.25 percent of the products’ total price. For a $1,000 laptop that would mean a royalty of $22.50 for using 50 patents related to a video standard. Microsoft says a group of 29 companies that hold the other 2,300 patents related to this standard charge a total of 2 cents for using them.
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