European Commission and the U.S. Department of Justice to warn against possible abuse of power of Motorola's patents as new business battles on Android and the iPhone
The European Commission and the U.S. Department of Justice have agreed to the acquisition of $ 12.5 billion (EUR 10.4 billion) of Google, Motorola Mobility (MMI), the phone in the U.S. and the manufacturer of set-top box - a move that will open a new and potentially explosive chapter in the fight for patents for smart phones.
China should also do the same before the merger can be completed.
The approval puts Google and Apple disagree as a subsidiary of Motorola is trying to push the iPhone maker of patent payments for chipmaker Qualcomm, iPhone chip supplier, said it has already been authorized.
But in a clear plan on the bow of Google, the U.S. Department of Justice said in a statement accompanying its approval, whereas Apple and Microsoft had made clear commitments on licensing "essential patents "standards (MS) for use in smartphones," Google's commitments were more ambiguous and not give the same direct confirmation of its licensing policy in September "For this reason, the Department of Justice will follow the market and "do not hesitate to take appropriate enforcement action to stop any anticompetitive use of rights in September."
The EC has had a similar warning. After a thorough review of the proposed merger, in which the two companies joined hands in August, the EC said Monday night that decided that the agreement does not affect the provision of Android software to other phone manufacturers mobile. However, Joaquin Almunia, European Commissioner for competition, warned that "the Commission will continue to keep an eye on the behavior of all market players in the sector, particularly the use of increasingly strategic patents."
Google said it is buying MMI, who became the first mobile phones, due to its strong portfolio of 17,000 existing patents and pending 7500 covers a wide range of key areas standards in wireless and mobile and other areas. This acquisition will enable Google to provide patent protection to manufacturers of devices that use its Android mobile operating system, which now face legal attacks on patents of companies like Apple and Microsoft.
Microsoft has forced companies like Samsung, which makes almost 50% of all phones Android and HTC mobile phones to sign deals for purchase of shares in which to claim ownership of the patent . The software giant says 70% of Android phones sold in the United States covered by these agreements - and after more like Huawei China, another Android phone maker. Microsoft is also locked in battle with the patent MMI.
Apple last week introduced an explosive demand in the U.S., saying that the GUI is abusing its ownership of essential patents that are used for mobile phones, after writing to Apple and chip maker Qualcomm in January. In the letter, MMI reversed the ability to use two Apple patents integrated into Qualcomm's chips are used in the iPhone. These specific revocations are not normally allowed in the conditions under which "essential" patents licensed in: if Motorola is convicted of violating the rules "reasonable and nondiscriminatory" (fair, reasonable and nondiscriminatory) concerning the grant license its patents, then it could face sanctions by the standards organizations, and damages from Apple.
Apple seeks to expand the case of Germany, where he fights for Motorola attempts to impose a ban on sales of its iPhone 4S and use the web and storage icloud service synchronization.
If Apple can prove that it is abusing patents Frand MMI, which could take the case to the attention of Joaquín Almunia, European Commissioner for Competition, who warned in a speech Friday that "owners these standard essential patents confers a power on the market that can not afford to abuse. "
In approving the acquisition, Mr. Almunia added that the decision "does not mean that the field of fusion bless all the shares of Motorola in the past or the future of all shares of Google "and that any action" The question [of] whether the conduct of Google and Motorola is compatible with the antitrust laws "are taken separately.
- Almunia could impose fines for abuse of up to 10% of the total turnover of the company - which, after the merger, estimated at several billion. Although previous largest of Google was $ 500, exactedlevied by the government of the United States last August for his role in the illegal sale of drugs online outlets from Canada to the United States.
- MMI was separated from the larger society Motorola in January 2011, but since then has had financial problems, record quarterly net loss and loss of money and market share in its business telephony mobile phones. While revenues of about $ 3.4 billion per quarter will be weak compared to Google, which spent $ 10 billion in the fourth quarter, should result in tax benefits mean that it has not net effect on profitability.
- Google has said repeatedly that the company will lead MMI at arm's length, not the party in favor of mobile phones with the Android software. But analysts suspect that others will be its subsidiary and the phone with new versions of Android, as it seeks to impose greater compliance of the increasing use of software.
- Aa Almunia
- team has yet to rule on a separate investigation into the behavior of Google in Europe, where he is to decide whether a full investigation of antitrust practices and advertising research. A decision is expected in March.
last July, Larry Page, Google CEO, contact Motorola, after losing the bet of a series of patents that were auctioned off after the bankruptcy of Canada's Nortel Communications. Google, the competition with Intel, resigned when the bids by a team of Apple, Microsoft and RIM BlackBerry maker has reached $ 4.5 billion - but its supply from Motorola that go far beyond that
According to a SEC filing made by Motorola, following the agreement of the acquisition, Google said it would be interested in buying the company - and two weeks later, on July 20 The famous "corporate raider" Carl Icahn, then holding about 11% of the company, said Sanjay Jha, head of MMI, the company "should explore alternatives for MMI patent portfolio." In other words , Icahn said to sell. (Icahn revealed that advice in a statement the day he did.)
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