Microsoft Corp. (MSFT) won a federal trade
ruling that will force Motorola Mobility Holdings Inc. (MMI) to alter
software on some of its Android-based mobile phones to keep
bringing them into the U.S.
A U.S. International Trade Commission judge found that
Motorola Mobility infringed a patent covering a program by
Redmond, Washington-based Microsoft called ActiveSync, which
lets users generate meeting requests among a group. Six other
patents weren’t violated, the judge ruled.
The ruling still must be reviewed by President Barack Obama, who can override the order on public policy grounds.
“We hope that now Motorola will be willing to join the
vast majority of Android device makers selling phones in the
U.S. by taking a license to our patents,” David Howard,
Microsoft’s deputy general counsel, said in an e-mailed
statement.
An exclusion order would affect Droid 2, Droid X, i1, Cliq
XT, Devour, Backflip, Charm and Clip models, according to a
filing with the ITC.
Android Fight
Motorola Mobility said it was disappointed and would
explore options including an appeal. “Motorola Mobility will
not experience any impact in the near term,” Jennifer Erickson,
a company spokeswoman, said in an e-mail.
The ruling probably will push Motorola to reach a
settlement and pay Microsoft a licensing fee instead of having
to modify the phone software, said Charlie Wolf, an analyst with
Needham Co in New York.
“These cases usually end up with the parties settling,”
Wolf said.
The case is part of a broader effort by Microsoft and Apple
Inc. to curtail the growth of mobile devices that run on Google
Inc. (GOOG)’s Android operating system. Google licenses Android for
free to further its mobile-advertising business.
The platform has become the most popular for smartphones,
with more than half of a market for mobile devices that Yankee
Group has projected will reach $360 billion this year.
Licensing Deals
Microsoft contends it should be paid royalties by makers of
mobile devices that run on Android. The software maker has
reached licensing deals with Samsung Electronics Co. and HTC
Corp. (2498)
Motorola Mobility, which is being bought by Google, refused
to pay and instead struck back in a case at the trade agency.
Microsoft’s willingness to license is different from Apple,
which wants makers of Android smartphones to make changes to its
devices, Wolf said.
“I would expect Motorola to get together with Microsoft to
resolve this,” he said.
Xbox, Windows
Microsoft has capitalized on patents it said cover features
of Android, and said it has struck licensing agreements with
makers of more than 70 percent of all Android devices sold in
the U.S. Microsoft’s only litigation with Android-device makers
is with Motorola Mobility, following a settlement reached last
month with Barnes Noble Inc. (BKS)
The software maker filed the ITC complaint in October 2010.
Motorola Mobility responded by sending letters demanding
royalties on Microsoft products, including the Xbox and Windows
operating system. The legal battle has since escalated, with
Microsoft accusing Motorola Mobility of misusing its patents in
a lawsuit pending in Seattle and before regulators in the U.S.
and Europe.
Motorola Mobility has filed its own patent-infringement
claim against Microsoft at the agency, seeking to block sales of
the Xbox. An ITC judge said Microsoft was infringing four
Motorola Mobility patents; Microsoft wants the commission to
review that decision.
Microsoft’s case against Motorola Mobility is In the Matter
of Certain Mobile Devices, Associated Software and Components
Thereof, 337-744, while Motorola Mobility’s case against
Microsoft is In the matter of Gaming and Entertainment Consoles,
337-752, both U.S. International Trade Commission (Washington).
To contact the reporters on this story:
Susan Decker in Washington at
sdecker1@bloomberg.net;
William McQuillen in Washington at
bmcquillen@bloomberg.net
To contact the editor responsible for this story:
Bernard Kohn at
bkohn2@bloomberg.net
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Article source: http://www.bloomberg.com/news/2012-05-18/microsoft-wins-ruling-forcing-change-in-motorola-phones.html



