Motorola notified of Apple's FRAND abuse complaint

PanARMENIAN.Net - A regulatory filing from Motorola Mobility has revealed that Apple has complained to the European Commission over the handset maker's efforts to obtain injunctions against its rival by wielding standards-essential patents with FRAND commitments.

According to Apple Insider, Motorola's Form 10-K annual report, filed on Friday, Feb 17, revealed that the company has just received a letter from the commission notifying it of Apple's complaint. The form disclosed ongoing legal proceedings, including its dispute with Apple.

Apple's complaint was submitted to the Competition Directorate-General and asked for the commission to intervene "with respect to standards-essential patents" (SEPs). The iPhone maker alleges that Motorola has breached its Fair, Reasonable and Non-Discriminatory commitments for its SEPs.

FRAND commitments are vital to the establishing of industry standards, especially within the wireless industry. Companies are often required to agree to license their patents on FRAND terms to competitors in order before submitting their intellectual property to standard-setting organizations. Court filings show that Motorola has offered Apple a patent license, but Apple believes the 2.25 percent royalty rate that its rival is seeking is unfair, unreasonable and discriminatory.

In Friday's filing, Motorola also said it expects International Trade Commission cases brought against it by Apple and Microsoft to be resolved in the second and third quarters of this year. The company warned that ITC losses could require it to expend "significant resources to pay damages, to develop non-infringing products or to obtain licenses." In addition, patent licenses could either be unavailable or commercially unreasonable and might potentially result in the blocking of Motorola's devices in the U.S. market.